Answer:
$35,000
Explanation:
According to accounting standard IFRS 16 Property, Plant and Equipment is initially recorded at its cost. Estimated market value and offer price will not be considered to record this transaction. Cost incurred for this equipment is as follow:
Cash payment = $15,000
Note payable = $20,000
Total Cost = $15,000 + $20,000 = $35,000
Answer:
$54.35
Explanation:
The computation of the price per share of the common stock is shown below:
= Next year dividend ÷ (Required rate of return - growth rate)
where,
Next year dividend is
= $3.23 + $3.23 × 4.2%
= $3.23 + 0.13566
= $3.37
And, the other items would remain the same
So, the price per share is
= $3.37 ÷ (10.4% - 4.2%)
= $3.37 ÷ 6.2%
= $54.35
Answer:
Stock A will be preferable for the risk averse Investors.
Explanation:
The reason is that risk is the measure of the vulnerability of the returns on the investment made which means if the return on the investment has greater vulnerability of returns then it is highly risky. So the risk averse investor would prefer stock A with lower risk.
(Special comments:
It must be noted that the higher return shows that the investment is also highly risky because nobody is going to give you more with low risk associated investments. This means lower return on Stock B is also preferable here for the risk averse investor because it carries lower risks.)
Answer:
if you are approved for a secured loan, a lender will put a lien on an asset until the loan is paid off. An unsecured personal loan, by contrast, does not require any collateral. Examples of unsecured loans can include credit cards, student loans, unsecured personal loans, and unsecured personal lines of credit.
