Answer:
d. $255,000
Explanation:
Data provided
Net income = $665,000
Capital budget = $1,025,000
Debt = 60%
The calculation of total dividends is shown below:-
Total dividend (using residual dividend approach) = Net income - Equity
= $665,000 - ($1,025,000 × (1 - 0.60))
= $665,000 - ($1,025,000 × 0.40)
= $665,000 - $410,000
= $255,000
Total dividend to be paid by Torrence Inc. = $ 255,000
Answer:
Total return equals earnings multiplied by the dividend payout rate.
Explanation:
Total return is calculated as appreciation of price plus dividend paid, divided by the original price of the stock.
The income gained on a stock is the increase in its value along with dividend that is paid out. This is compared to the original price (denominator) to determine how much returns is realised on the stock.
Mathematically
Returns= {(New price- Old price) + Dividend} ÷ Old price
So the statement total return equals earnings multiplied by the dividend payout rate is false
Incomplete question. The missing part of the text which adds some context read:
Minerals, such as aluminum, copper, and gold are non-renewable resources. When mineral deposits are found, they can be mined. These mineral deposits can be found by plate boundaries because they are brought to the surface through ______
Answer:
<u>weathering </u>
Explanation:
The term weathering when used in geography often refers to the process that involves the breaking down or dissolving of rocks or the minerals contained in the soil. This process could then lead to mineral deposits been brought to the surface of the soil.
Hence, based on this understanding, we can conclude that the best term to complete the gap is the "weathering".
Answer:
The balance in right-of-use asset after two years using straight-line method is $428,571.
Explanation:
Right-of-use asset is simply the lessee's right to the use of leased asset under the agreed terms. The term came into being as a result of IFRS 16 Leases, which replaced IAS 17.
Using straight-line method, depreciation expense is calculated as (Cost - Residual Value) / No of useful life
The economic life of the asset is what we would use as the useful life and not the lease term since that approximates the useful life of the asset.
Therefore, depreciation = ($600,000 - 0) / 7 years = $85,714 yearly
Accumulated depreciation for 2 years is $85,714 x 2 = $171,429 approximately
Therefore, the balance (net book value) in the right-of-use asset after two years will be $600,000 - $171,429 = $428,571
