Answer:
3) Corporations use acquisition as a substitute for innovation.
Explanation:
The fastest way in which a corporation can enter a new market or develop new products is through buying existing companies that already operate in the new target markets or have developed the new products that the corporation wishes to sell.
Research and development is very costly and time consuming, and on many occasions the results aren't even good or are not as good as expected. By acquiring a smaller company that has already developed the product, then the corporation might even save money.
Answer:
Debit Bad Debts Expense $12,475
Credit Allowance for Doubtful Accounts $12,475
Explanation:
Calculation for estimated bad debts expense:
Explanation
Accounts receivable * Sales uncollectible
$445,000×0.025
=11,125
Hence:
11,125 +Allowance for Doubtful Accounts 1,350
=$12,475
Therefore the estimated bad debt will be:
Debit Bad Debts Expense $12,475
Credit Allowance for Doubtful Accounts $12,475
If you had invested $100 in 1972 in the 500 stocks of the s&p500 index $1,612
<h3>What is
stocks ?</h3>
A stock is a type of investment that represents ownership in a portion of the issuing company and is commonly referred to as equity. Owners of shares, often referred to as units of stock, are entitled to a portion of the company's assets and earnings in proportion to the number of shares they own.
The majority of private investors base their portfolios on equities, which are often bought and sold on stock exchanges. Stock trades must adhere to government regulations intended to protect investors from deceptive practices.
A sort of instrument known as a stock, which is commonly exchanged on stock exchanges, represents the holder's ownership interest in the issuing company.
Corporations issue stock as a means of raising capital to fund their operations.
Common are the two main stock classifications.
The two primary stock categories are common and preferred.
To learn more about stocks from the given link:
brainly.com/question/25818989
#SPJ4
Answer:
Kd = 7%
Ke = D1 + g
Po(1 - FC)
Ke = $2 + 0.09
$40(1 - 0.15)
Ke = $2 + 0.09
$34
Ke = 0.1488 = 14.88%
WACC = Ke(E/V) + Kd(D/V)(1-T)
WACC = 14.88(60/100) + 7(40/100)(1 - 0.40)
WACC = 8.928 + 1.68
WACC = 10.6%
Explanation:
In this case before-tax cost of debt is given. Cost of equity is expected dividend divided by current market price after flotation cost plus growth rate. WACC is calculated as cost of equity multiplied by the proportion of equity in the capital structure plus after-tax cost of debt multiplied by proportion of debt in the capital structure.
Answer:
Option D is the correct answer,$ 88,338.48
Explanation:
The liability reported in the balance sheet can be computed by using the pv formula in excel which is stated thus:
=-pv(rate,nper,pmt,fv)
rate is the incremental borrowing rate of 11% per year
nper is the number of payments required to settle the obligation which is 10
pmt is the amount of yearly payment in order to fully settle the debt owed which is $15,000 per year
fv is the future worth of total payments which is not unknown,hence taken as zero
=-pv(11%,10,15000,0)=$ 88,338.48
The correct answer is $ 88,338.48