Answer:
Sep 1st
Debit Cash 100,000
Credit Note Payable 100,000
(to record 90-day note borrowing from First National Bank)
Explanation:
As at September 1, Vicario Inc receive the cash amount of $100,000 from First National Bank through Borrowing, the Cash account should be recorded up $100,000 ( that is, Dr, as Cash is an asset account) to reflect the transaction.
The offseting Credit entry will be recorded in Note Payable account ( which is a liability account) to reflect the liability of $100,000 owed to the Bank.
As at 1 September, the first day of assuming the debt, no interest expenses is incurred, so, no entry is needed to record interest expense.
1. is true, and the 2. is false
Answer:
$2.8 divdends per share
Explanation:
$56 market price
Rate of return 10%
The gain for an investment in stocks is:
In this case we are told that this is distribute evenly, this means:
dividends paid = market price gain
So dividends yield 5% and market price yields another 5% to achieve the 10%
So currently $56 market price x 0.05% = $2.8 divdends per share
Answer:
$53
Explanation:
Call option is $3
Exercise price is $50
The stock is currently priced at $49
It rises to $55 on the expiration date
Therefore the cost price at which the speculator will break even can be calculated as follows
= ($50-$3)+($55-$49)
= $47 + $6
= $53
