Answer:
$6
Explanation:
depreciation rate per hour using the units-of-production method = (cost of asset - residual value) / estimated hours of operation
($80,000 - $5,000) / 12,500 = $6
Answer: B) The longer the cash cycle, the more likely a company will need external financing.
Explanation:
The cash cycle refers to the amount of time it would take a company to be able to convert the goods that it has in inventory to actual cash. If this cycle is long, then the company will have less cash than it needs because it is not raising cash fast enough.
To be able to fund operations therefore, the company might be forced to seek external financing.
Answer:
Expected return or the cost of equity capital for the firm = 14%
Explanation:
V(0) = D1 / r - g
v = 20, D1 = 2, r = ?, g = 0.04
20 = 2 / (r - 0.04)
20r - 0.8 = 2
20r = 2 + 0.8
20r = 2.8
r = 2.8/20
r = 0.14
r = 14%
Note: Application of constant growth dividend discount model was required to solve the question
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Explanation:
APR? That's interest. You don't want to add interest. If you are trying to increase your credit limit you can ask the credit card company - but you need to make sure your payments have been on time