No because you might loose money with them having discrepancies in their financial records. They may also be doing illegal activities such as laundering money or other things that are against the law.
Answer:
share price 69.108
Explanation:
We have to calculate the present value of the dividends like it was an annuity using the required return.
PV 69.108
the gordon dividend growth model doesn't apply becasue the dividend will cease to exist, there is no infinite future dividend to calculate the present value using that method.
Answer: $528 favorable
Explanation:
The Spending variance for supplies shoes the difference between what the company thought it would spend on supplies and what it actually spends.
Spending variance on supplies = Actual costs - Budgeted costs
Budgeted cost:
= 968 + 8 * 470 frames
= 968 + 3,760
= $4,728
Spending variance on supplies:
= 4,200 - 4,728
= $528 favorable
<em>Variance is favorable when the Budgeted costs are higher than actual costs. </em>
Answer:
cash 1,000 debit
inventory 2,000 debit
land 5,000 debit
note payable 3,000 credit
Krug capital Account 5,000 credit
Explanation:
The land and inventories will be accepted at his market value.
Along with cash this are assets which enter the partnership so they are debited.
The note payable decreases the Krug capital contribution. It is credited.
Krug capital account balance will be to complete the entry and make debit = credit.