Answer:
rounded to the nearest ten thousand dollars
Explanation:
The term pro forma financial statements refers to a type of financial statement which estimates future financial results. It doesn't follow the GAAP, instead it is designed to focus on specific figures about a company's expected earnings. Although pro forma financials are only expected financial statements, it is still illegal to mislead investors using them.
Answer: 8%
Explanation:
The Annual Percentage Rate or APR for short is calculated by dividing the finance cost by the total amount borrowed in the following manner,
APR = Finance Charge / Amount borrowed.
To calculate the Finance charge we add the interest and the service charge.
Finance charge = 25 + 15
= $40
Back to the APR formula we will have,
APR = Finance Charge / Amount borrowed
APR = 40/500
= 0.08
APR is 8%.
Answer: ke = D1/Po + g
0.1025 = D1/57.50 + 0.06
0.1025-0.06 = D1/57.50
0.0425 = D1/57.50
D1 = 0.0425 x 57.50
D1 = $2.444
Explanation: Cost of equity is equal to dividend in 1 year's time divided by the current market price plus the growth rate. Other variables were provided in the question except the dividend at the end of the year (D1).
Thus, D1 becomes the subject of the formula. The appropriate cost of equity is $2.44. The correct answer is B.
Answer:
9,315
Explanation:
The 83(b) election of the IRC which allows the employe of restricted stock to pay taxes on the fair market value at the time were granted.
It applies when the stocks are subject to vesting
The 83(b) election becomes useful when the employee has confidence that market value will increase and thus, saving taxes in the future.
If the market price decrease over the years or the company files for bankrupcy, the taxpersons will have pay income taxes for a worthless amount.
Also, if he leaves the company before esting the shares, it would had pay taxes for shares it won't receive.
So, resuming: under election 83(b) we use granted time value
1,035 x 9 = 9,315
Amount to be credited = $2,020
Outstanding balance = $480
Explanation:
The payment terms state that
- 3% discount may be taken within 10 days of the invoice date (up to May 20); or
- 1% discount may be taken within 15 days of the invoice date (after May 20 but not later than May 25); or
- The net amount is due within 60 days of the invoice date if advantage is not taken of the cash discounts offered.
- The 3% cash discount is not applicable as the payment was made on May 22 which is after the end of the discount period. However, the 1% discount is allowed, since payment on May 22 is within the 15-day period for the 1% discount.
Amount to be credited
= 2000 / (1−0.01)
= 2000 / (0.99)
= $2,020
Outstanding balance
= 2500 - 2020
= $480
