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3 years ago

Target's liabilities exceed owners' equity. a) true b) false

Business

1 answer:

Likurg_2 [28]3 years ago

4 0

Answer: True

Explanation:

As of February 2020, Target Corp's total liabilities were listed to be $30,946,000,000 while its shareholder equity was significantly lower at $11,833,000,000.

Target Corp therefore does indeed have liabilities that exceed owners equity and by a substantial amount. This has also been the trend since at least 2015.

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A company paid its annual dividends of $5.39 per share last week. The company expects to grow its dividends at the rate of 5.0 p

Serhud [2]

Answer: $58.7

Explanation:

The price of one share of this stock today will be calculated thus:

Dividend of year 1= $5.39(1 + 0.05) = $5.66

Dividend of Year 2 = $5.39(1 + 0.05)² = $5.94

Dividend of Year 3 = $5.39(1 + 0.05)³ = $6.24

Dividend of Year 4 = $5.39(1 + 0.05)^4 = $6.55

We then calculate the value at year 4 which will be:

= $7.13 / 0.115 = $62

The price will then be:

Price = $5.66 / (1 + 0.115) + $5.94 / (1 + 0.115)² + $6.24/ (1 + 0.115)³ + $6.56 / (1 + 0.115)^4 + $62 / (1 + 0.115)^4

= $58.7

8 0

3 years ago

According to financial planners, the average retiree requires approximately 70% of their last year’s working salary (answer to #

Anna35 [415]

Answer:

Our answer is 2430798.798

Explanation:

. 70% of pre-retirement salary should be equal to the interest that we get from savings(5% of savings).

Therefore, 0.7 × 173628.4856 = 0.05×savings

==> savings = 2430798.798

3 0

3 years ago

A company purchased $10,500 of merchandise on June 15 with terms of 2/10, n/45, and FOB shipping point. The freight charge, $750

defon

,Answer:

$9,825

Explanation:

Merchandise Costs must include all costs related to acquisition of merchandise such as freight charges for valuation purposes - IAS 2.

Therefore Cost of Merchandise Purchased was, $10,500 + $750 = $11,250

Merchandise Purchase - June 15 :

Debit : Merchandise $11,250

Credit ; Discount Received (2% x $11,250) $225

Credit : Account Payable (98 % x $11,250) $11,025

Return of Merchandise - June 20 :

Debit : Accounts Payable $1,200

Credit : Merchandise $1,200

Amount to be Paid - June 24 :

Debit : Accounts Payable ($11,025 - $1,200) $9,825

Credit : Cash $9,825

4 0

3 years ago

The _____ is known as make-to-order. select one:

Korvikt [17]

The answer is C.
The pull model is known as make-to-order. The pull model strategies include interest for a specific product that was created depending on the target audience, not following the demands stated by channel partners.

5 0

3 years ago

Lofland's has $20 million in current assets and $10 million in current liabilities, while Smaland's current assets are $10 milli

hjlf

Answer:

c.The transactions would lower Lofland's financial strength as measured by its current ratio but raise Smaland's current ratio.

Explanation:

The current ratio compares current assets with current liabilities showing how many dollars of assets are there for a dollar of liabilities. This tells investors about the company ability to pay short-term obligations or those due within one year.

Current Ratio = Current Asset (CA) / Current Liabilities (CL)

Lofland's NOW = 20 M CA / 10 M CL = 2.00

Lofland's AFTER = 30 M CA / 20 M CL = 1.50

Smaland's NOW = 10 M CA / 20 M CL = 0.50

Smaland's AFTER = 20 M CA / 30 M CL = 0.67

Lofland's current ratio gets lower, so its financial strength as well. Instead, Smaland's current ratio gets higher and It´s financially stronger.

3 0

4 years ago