Answer:
I dont know the answer im just saying this so I can come back to it when there is an answer
Explanation:
Answer:
B - Extrapolate
Explanation:
Extrapolate means to extend the application of (a method or conclusion, especially one based on statistics) to an unknown situation by assuming that existing trends will continue or similar methods will be applicable.
Answer:
$0.69 million or $690,000
Explanation:
Value of Firm Vₐ = $24.7 million
Debt D = $5.5 million
Shares S = 390,000 * 51 = $19.89 million
Therefore Value Vₓ = 5.5 + 19.89 = $25.39 million
We would expect Vₐ and Vₓ to be the same value. Therefore the decrease in the value of the company due to expected bankruptcy costs is
= $25.39 million - $24.7 million
= $0.69 million
Answer:
B. assets must increase, or equity must decrease by $10,000
Explanation:
As it is given that
The transaction increased the total liabilities by $10,000 which either increase the assets or decrease the equity by $10,000 as per the accounting equation
As we know that
Accounting equation is
Total assets = Total liabilities + owner equity
So by following this equation the appropriate answer is B as the transaction focused on balancing the accounting equation