1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Whitepunk [10]
2 years ago
14

Which of the following activities is not correctly associated with its cash flow classification? A) Operating – Sale of merchand

ise for cash B) Financing - Sale of company’s Preferred Stock C) Investing – Purchase of Treasury Stock D) Operating – Purchase of advertising for the year
Business
1 answer:
svlad2 [7]2 years ago
3 0

Answer: The following activities is not correctly associated with its cash flow classification: <u><em>Investing – Purchase of Treasury Stock</em></u>

<em>Treasury stock can be stated as the prominent stock bought back from stockholders by  issuing organization. The shares that are issued but not prominent and thereby are not enclosed in the computation of dividends.</em>

<em>The above statement false since Purchase of Treasury Stock is a Financing activity.</em>

<em />

You might be interested in
Does anyone have a way or trick on using like blocked websites on a school chromebook?
kap26 [50]
I’m pretty sure u can disable or some way but it depends on like the type of thing your school uses to block websites :(
4 0
3 years ago
Avicorp has a $10 million debt issue outstanding, with a 6% coupon rate. The debt has semiannual coupons, the next coupon is due
rjkz [21]

Answer:

Explanation:

Pretax cost of debt is the annual rate(YTM) of the bond. Using a financial calculator, input the following to calculate it;

N = 5*2 = 10

PV = -(95% *10,000,000) = -9,500,000

Coupon PMT = (6%/2)*10,000,000 = 300,000

FV = 10,000,000

then compute semiannual rate; CPT I/Y = 3.604%

convert to annual rate = 3.604*2 = 7.21%(this is the pretax cost of debt)

After tax cost of debt is calculated because interest payable on debt has tax shield. The formula is as follows;

Aftertax cost of debt = pretax cost of debt (1-tax)

AT cost of debt = 7.21% (1-0.40)

AT cost of debt = 4.33%

8 0
3 years ago
Toy Town is considering a new toy that will cost $49,100 in startup costs. The toy is expected to produce cash flows of $47,500
Tasya [4]

Answer:

NPV with a 14.9% discount rate: 6,329.06

The toy should be produced as the NPV is positive.

IRR = 26.65%

Explanation:

First we calculate for the NPV using the given discount rate of 14.9%

We will calculate the present value of each year cash inflow:

\frac{inflow}{(1 + rate)^{time} } = PV  

Year 1 cash inflow: 47,500.00

time   1.00

rate  0.149

\frac{47500}{(1 + 0.149)^{1} } = PV  

PV   41,340.30

Year 2 cash inflow:  18,600.00

time   2.00

rate  0.149

\frac{18600}{(1 + 0.149)^{2} } = PV  

PV   14,088.76

Then, we add them and subtract the investment to get NPV

NPV = 14,088.76 + 41,340.3 - 49,100 = 6,329.06

The toy should be produced as the NPV is positive.

Now for the IRR

That is the rate at which NPV equals zero we can solve for this using the quadratic equation as there are only two cash flow:

Year 1 will discount at (1+IRR)

Year 2 will be discount at (1+IRR )^2

So we can express and recreate the quadratic formula:

18,600 X^2 + 47,500 X - 49,500 = 0

A = 18,600

B = 47,500

C = -49,100

x_1 = \frac{-b+\sqrt{b^{2} -4ac}}{2a}\\x_2 = \frac{-b -\sqrt{b^{2} -4ac}}{2a}

We can solve and get:

x1 =  0.78957

x2 = -3.3433

We take the positive value.

and now solve for IRR

\frac{1}{1+ IRR} = 0.78957\\IRR = \frac{1}{0.78957} -1

IRR = 0,2665121 = 26.65%

This will be the IRR for the project.

4 0
3 years ago
Choosing firm goals for your business
Gala2k [10]

D. Eliminates other options is correct. Just took the test.


8 0
3 years ago
Read 2 more answers
How does a mechanic's lien assist creditors?
kati45 [8]
If the debtor continues not to pay the underlying debt, the creditor can foreclose on the debtor's real property to collect the amount due.
7 0
2 years ago
Other questions:
  • A bottling plant fills 2,400 bottles every two hours. The lead time is 20 minutes and a container accommodates 80 bottles. The s
    8·1 answer
  • Gabe's Granola Bars had coffee mugs created with their company logo and passed them out on a busy Saturday at a popular grocery
    9·2 answers
  • In government-wide financial statements, the assets acquired under a capital lease would be reported at ____ (A) The total of al
    8·1 answer
  • You are planning to purchase the stock of Ted's Sheds Inc. and you expect it to pay a dividend of $3 in 1 year, $4.25 in 2 years
    13·1 answer
  • Gerald is assessing global entry strategies for his gourmet sandwich business. He doesn't want to take much risk, and he's willi
    6·1 answer
  • In 2009, the federal government created a program called cash for clunkers whereby consumers could trade in a less efficient car
    10·1 answer
  • To create a portfolio with duration of 4 years using a 5 year zero-coupon bond and a 3 year 8% annual coupon bond with a yield t
    13·1 answer
  • On January 1, 2021, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The
    10·1 answer
  • It is important to accommodate diverse cultural needs to set your
    8·1 answer
  • A justification for job training programs is that they improve worker productivity. Suppose that you are asked to evaluate wheth
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!