Answer:
Debit to Unearned Rent
Credit to Rent Earned for $2,925
Explanation:
Given:
Amount of total rent = $7,800
Computation:
Amount unearned = Amount of total rent (3months / 8 months)
Amount unearned = 7,800 [3/8]
Amount unearned = $2,925
Journal entry:
Unearned rent A/c Dr $2,925
Rent A/c Cr $2,925
[Debit to Unearned Rent
Credit to Rent Earned for $2,925]
The Banking Act of <u>1935</u> removed the Secretary of the Treasury and the Comptroller of the Currency from the governing board of the Federal Reserve.
<h3>What effect did the Banking Act of 1935 have?</h3>
The Banking Act of 1935 mandated additional changes to the Federal structure, including the establishment of the Federal Open Market Committee (FOMC) as a separate legal entity, the removal of the Treasury Secretary and the Comptroller of the Currency from the Fed's governing board, and the extension of members' terms to 14 years.
Check out the link below to know more about the Banking Act of 1935;
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<span>All of these can be true of fad diets but A is especially true. You need a balance of foods in order to be healthy and many fad diets don't support this. They teach dieters to eat a lot of a few types of food which creates an unhealthy idea of how to lose weight.</span>
Answer:
Each share worth is $2.59
Explanation:
According to the given data we have the following:
D1 = Cash Flow at the end of year 1 = $ 10 million
r = Cost of Capital = 10% = 0.1
g = perpetual growth of cash flows
Hence, The present value of Cash Flows = D1/(r-g)
= 10/(0.1-0.03)
=10/0.07
= $ 142.8571428571 million
= $ 142.86 million
To find the equity value we need to remove the net debt from cash flows
Net Debt = Debt - Cash
= 22 - 8.5
= $ 13.5 million
Now net cash flows = Cash Flows - Net Debt
= 142.86 - 13.5
= $ 129.36 million
Therefore, each share worth = Present Value of Cash Flow / No of Outstanding Shares
= 129.36 / 50 (Both values are in millions so the zeros are ignored)
= 2.5872
= $2.59
Each share worth is $2.59
Answer:
The total cash flow of the firm
Explanation:
The M & M theory is a theory developed by Modgliani Miller about the capital structure of a company and its overall value .
The theory was first enacted under the assumption of a perfectly efficient market and when the effects of taxes and bankruptcy costs were not considered, However , he later developed another theory where tax and other costs are now considered to address the real world condition.
In summary , the basic lesson is that the value of a firm is dependent on the total cash floe of the firm.
