Answer and Explanation:
Given:
Issue of new bonds price = $525,000
Retired price of bonds = $210,000
It is given that new bonds price a $525,000 issue and the value of retire Bond price will $210,000.
Issue of new bonds will increase cash by $525,000 because business gets cash from the issue of bonds and retire off the old bond will decrease cash by $210,000.
Answer: Option B
Explanation: Earnings per share is calculated by dividing net income available to common shareholders with the weighted average number of shares.
Deduction of preferred dividends from net income is done only when dividends are declared by the entity, otherwise not. Preference shareholders have priority over common shareholders in case of dividends, so it will result in reduction of earnings to common shareholders but only when the dividends are declared and distributed.
Answer:
Stock value today = $1.21
Explanation:
Current Dividend = D
= $1.13
After 5 years that is D
= $0.50
Since expected growth = 0
Therefore
P
= D / Ke = 0.5/18% = $2.77
Its present value will be 
= $1.21
Stock value today = $1.21
Answer:
A liability account in the balance sheet.
Explanation:
When rent is collected in advance, the entries required to be recognized at the point of collection is as follows;
Debit Cash account
Credit Unearned/Deferred rental revenue
The cash account is an asset while the Unearned/Deferred rental revenue is a liability account.
As such, the collection of rent in advance is A liability account in the balance sheet.
