Answer:
26%
Explanation:
MV=Do(1+g)/(Ke-g)
Where MV is market value=$36
Do is current dividend per share=$6
g is growth rate=8%
Ke=?
By putting above values we get;
36=6(1+.08)/(Ke-.08)
36Ke-2.88=6+.48
36Ke=2.88+6+.48
Ke=9.36/36
Ke=26%
Answer:
$2,297.50
Explanation:
The annual lease value for Brent's Toyota Prius is $9,750. Since he uses the car approximately 20% of the time for personal use, then Brent's share of the annual lease is = $9,750 x 20% = $1,950
This 20% of personal use represents 6,950 miles (= 34,750 miles x 20%), if the company charges him five cents per mile, then Brent is receiving $347.50 (= 6,950 x $.05
) for personal fuel use.
Brent's total taxable benefit = $1,950 + $347.50 = $2,297.50
Answer:
D. Debit to Dividends Payable.
Explanation:
The first thing we have to keep in mind is that dividends are liabilities, that is, they represent cash outflows for the corporation. In the example, we can distinguish two moments: the declaration of a cash dividend and its effective distribution. Next, we will analyze them from an accounting point of view:
- On July 15, 2014, Benson Company declared a cash dividend. In accounting terms, on that day the “Retained Earnings” account was debited. Remember that this account is the one that records the profits that the company has obtained to date. So, what was done was to <em>subtract</em> that part that is to be distributed among stockholders. This amount is then transferred to a current liability account called “Dividends Payable”. In this case, money was <em>added</em>, therefore, the account was credited.
- On August 15 dividends were distributed. That day, the "Dividends Payable" account was debited, or, in other words, its money was <em>discounted</em>, because it is now in the hands of shareholders.
Answer:
Balking
Explanation: Balking means the tendency of an individual not to do something or let something happen due to the circumstances he /she feels is not conducive for he/she. if you balk at something, then you definitely do not want to do it
