Answer:
a) attached below
b) X < 2.7767.8
Explanation:
Working with the information available
a) Diagram of the cash flow of both alternatives ( Buying and leasing alternatives )
attached below
b) Determine the value of X if the company leases the truck
Given that : MARR = 7%
assuming end-of-year lease payments
Note : The company will only lease the truck if the cost of buying the truck is higher than the cost of leasing in the long term
<u>∴ we will calculate for The cost of buying ( equivalent annual cost ) </u>
= -8000( A/P, 7%, 5 ) - 9000 - 1000 (A/G, 7%, 5 ) + 15000 (A/F, 7%, 5 )
= - 27767.8
Hence the value of X that the company should lease instead of buying will be : X < 2.7767.8
Answer: Under IFRS, preferred stock dividends are reported in the income statement as interest expense
Explanation:
Preference shares, also called preferred stock, are the shares of the stock of a company whereby dividends are paid to the shareholders before the dividends are being issued.
For this type of shares, even if the company goes bankrupt, the preferred stockholders will be paid from the assets of the company before the common stockholders.
Under IFRS, preferred stock dividends are reported in the income statement as interest expense
The answer to this question is <span>determinant attributes
</span><span>determinant attributes refers to the attribute that become the main reason on why consumers choose to buy a certain programs without considering things such as the face of advertisers model, or company's side cause. This usually only focus on the price of the products and the function of the products
</span>