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3 years ago

Creditor beneficiaries can enforce their rights under a contract whenever the contract is valid.

1 answer:

4 0

It is not false that a creditor beneficiaries can enforce their rights under a contract whenever the contract is valid, it because the beneficiaries can enforce their own rights under the contract. So the correct answer is a, true.

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In February, one of the processing departments at Whisenhunt Corporation had beginning work in process inventory of $35,000 and

Lerok [7]

Answer:

$426,000

Explanation:

In order to arrive at the cost to be accounted for, the cost incurred on the closing WIP (Work-In-Progress) and the units transferred out is added.

The cost incurred on the opening WIP is deducted whenever the cost to be accounted for is calculated.

Calculate the cost to be accounted for in the department as shown below.

Cost to be accounted for = Closing WIP + Transferred out to department − Opening WIP

Given:

Closing WIP = $18,000

Transferred out to department = $443,000

Opening WIP = $35000

Cost to be accounted for = $18000 + $443000 − $35000

=$426,000

8 0

4 years ago

Michael's, Inc., just paid $2.20 to its shareholders as the annual dividend. Simultaneously, the company announced that future d

Whitepunk [10]

Answer:

The maximum price that should be paid for one share of the company today is $54.895

Explanation:

The price of a stock that pays a dividend that grows at a constant rate forever can be calculated using the constant growth model of Dividend discount model (DDM) approach. The DDM values a stock based on the present value of the expected future dividends. The formula for price today under this model is,

P0 = D1 / r - g

Where,

D1 is the expected dividend for the next period or D0 * (1+g)

r is the required rate of return

g is the growth rate in dividends

SO, the maximum that should be paid for this stock today is:

P0 = 2.2 * (1 + 0.048) / (0.09 - 0.048)

P0 = $54.895 rounded off to $54.90

5 0

3 years ago

Based on the case and previous calculations, please answer the following short answer questions. Note: Your instructor will need

mezya [45]

Question Completion:

see Exhibit 4 attached.

Answer:

1. The largest and smallest divisions by net sales in 2017:

Largest divisions:

Fabric & Home care with 32%

Baby, Feminine & Family Care, 28%

Smallest divisions:

Beauty with 18%

Grooming, 11%

Healthcare, 11%

2. The one most important division in terms of the proportionate net earnings for the company is:

Fabric & Home Care

Explanation:

The two largest divisions generate 60% of the net sales of the company while the three smallest divisions generate only 40%. In terms of the proportionate net earnings for the company, the two largest divisions also generate 53% of the net earnings of the company, while the three smallest divisions generate 47%. The analysis shows that the company's financial sustenance is largely driven by the Fabric & Home Care division and the Baby, Feminine & Family Care division. Another up-and-coming division is the Beauty division, which generates 18% of the net sales and 20% of the net earnings.

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4 0

3 years ago

A company issues $16200000, 5.8%, 20-year bonds to yield 6% on January 1, 2020. Interest is paid on June 30 and December 31. The

bekas [8.4K]

Answer:

The amount of interest expense which will be recognized in 2020 is $949,681.45.

Explanation:

The following are given in the question:

Bond value = $16200000

Bond interest rate = 5.8%

Proceed from bond = $15825541

Yield rate = 6%

The amount of interest expense which will be recognized in 2020 can now be calculated as follows:

Interest expense for January 1, 2020 to June 30, 2020 = Proceed from bond * Yield rate * (6 / 12) = $15825541 * 6% * (6 / 12) = $474,766.23

Discount amortized during first 6 months = Interest expense for January 1, 2020 to June 30, 2020 - (Bond value * Bond interest rate * (6 / 12)) = $474,766.23 - ($16200000 * 5.8% * (6 / 12)) = $474,766.23 - 469,800 = $4,966.23

Interest expense for July 1, 2020 to December 31, 2020 = (Proceed from bond + Discount amortized during first 6 months) * Yield rate * (6 / 12) = ($15825541 + $4,966.23) * 6% * (6 / 12) = $474,915.22

Interest expense to be recognized in 2020 = Interest expense for January 1, 2020 to June 30, 2020 + Interest expense for July 1, 2020 to December 31, 2020 = $474,766.23 + $474,915.22 = $949,681.45

Therefore, the amount of interest expense which will be recognized in 2020 is $949,681.45.

3 0

3 years ago

Martina invested her savings into her business when she started it. later she added more capital and she has kept some of her pr

musickatia [10]

Answer:

Owner's equity.

Explanation:

Owner's equity is the amount of ownership/value the owner has in the business after subtracting debt and liabilities.

8 0

3 years ago