Answer:
The cost of equity for ABC is 11.74 percent and for XYZ it is 14.47 percent.
Explanation:
a. For ABC
ABC cost of equity = Earning before interest and tax (EBIT) / Equity = $62,222 / $530,000 = 0.1174, or 11.74%
b. For XYZ
Perpetual debt = $530,000 - $310,000 = $220,000
Interest on debt = $220,000 * 7.9% = $17,380
Earning after interest = $62,222 - $17,380 = $44,842
XYZ cost of equity = $44,842 / $310,000 = 0.1447, or 14.47%
Answer:
c. Debit Cash, credit Unearned Revenue.
Explanation:
The journal entry is shown below:
Cash A/c Dr $2,000,000
To Unearned Revenue A/c $2,000,000
(Being advance cash is received)
For selling the advance tickets, we debited the cash account as cash is received and credited the unearned revenue because the service is not performed. It is recorded as a liability
Hence, the most appropriate option is c.
Therefore, all other options are wrong
Answer:
GDP = 280 billion
Net investment = 10 billion
National income = 270 billion
Explanation:
given data
Consumption = 200
Depreciation = 20
Retained earnings = 12
Gross investment = 30
Imports = 50
Exports = 40
Net foreign factor income = 10
Government purchases = 60
solution
we get here GDP that is express as
GDP = Consumption + Gross investment + Government purchases + Net exports ...................1
Net exports = ( Exports - Imports)
so put here value
GDP = 200 + 30 + 60 + 40 - 50
GDP = 280 billion
and
Net investment will be as
Net investment = Gross investment - Depreciation ...............2
Net investment = 30 -20
Net investment = 10 billion
and
National income = GDP - Depreciation + Net foreign factor income ............3
National income = 280 - 20 + 10
National income = 270 billion
Answer:
NAFTA became the largest free trade zone in the world.
Explanation:
The North American Free Trade Agreement (NAFTA) was a trade pact that was signed in the year 1992. This Pact was created with the goal of eliminating the majority of trade tariffs as well as other trade barriers on the various different products and services that were being traded between the United States of America, Canada, and Mexico. NAFTA became the largest free trade zone in the world.
A . an interest in animals leads to a career in marketing