Answer:
Omar's plan of retaining earnings can work depending on the liquidity preference of the shareholders.
If the shareholders have interest in short-term liquidity benefit (i.e. dividend), then his plans might be frustrated and vice versa.
[preparing trial balance] I am suppose to be preparing a trial balance but base on the accounts and information I have, I have the cost amounts for two years. How would I do that?
Answer:
Final Value= $43,871.84
Explanation:
Giving the following information:
Suppose you invest $2500 each year in a savings account that earns 12% per year.
Number of years= 10
To calculate the final value we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit= 2,500
i= 0.12
n=10
FV= {2,500*[(1.12^10)-1]}/0.12= $43,871.84
The equation of (ending value minus beginning value) and income return totalled, then divided by beginning value is used to find "rate of return".
<h3>What is income returns?</h3>
The portion of a fund's total returns that came through income distributions is known as the income return. For bond funds, income return will frequently be larger than capital return, while for stock funds, it will typically be lower. The fund's total return is calculated by adding the income return and the capital return together.
Rate of Return- The net gain or loss of an investment over a given time period, stated as a percentage of the investment's starting cost, is known as a rate of return (RoR).
Some key features of rate of return are-
- ROI is computed by first dividing the net return by the investment's cost, then multiplying the result by 100. This new number, which represents the net return, is then obtained by subtracting the investment's original value from its final value.
- According to conventional thinking, a fair return on an investment in stocks is one that is at least 7 percent annually. Additionally, this relates to the S&P 500's average annual return when inflation is taken into account.
To know more about internal rate of return, here
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Answer:
B.) $11.90
Explanation:
Predetermined manufacturing overhead rate are based on the estimates made by the company.
So the calculation should be:
Estimated MOH of $238,000<em> divided by</em> Estimated Machine Hours of 20,000.
Giving us the result of $11.90
(238,000 / 20,000 = 11.90)
