Answer and Explanation:
As we know that
The assets, expenses contains debit balance while the liabilities, revenues and stockholder equity contains credit balance
So based on this, the classifications are as follows
Particulars Type of account Normal balance Debit or credit Reason
a. Land Asset debit debit resources on the owners hand
b. Cash Asset debit debit resources on the owners hand
c. Legal Expense = expense debit debit consumption of cost
d. Accounts Receivable Asset debit debit resources on the owners hand
e. Dividends = Equity debit debit distribution made to owners
g. Notes Payable = Liability credit credit obligation made to creditors
h. Common Stock = Equity credit credit investment done by the owners
Answer:
A. long-term ability to generate sufficient cash to satisfy plant capacity needs, fuel growth, and to repay debt when due.
Explanation:
Solvency is defined as the long-term ability of a business the generate enough cash flow that will allow it to continue its operations and also to pay of its debt when due.
It is used as a measure of the financial health of the business.
A business with good solvency has a high probability of remaining in operation for the foreseeable future.
Answer:
Factors that can shift the demand curve for goods and services, causing a different quantity to be demanded at any given price, include changes in tastes, population, income, prices of substitute or complement goods, and expectations about future conditions and prices.
<span>$11,320 with its interest rate over the year will be $13659.84. If Francine paid $436 each month for a year he would have paid off $5232 in a year. His debt balance would still be remanding at $8427.84. Francine will have paid off a large amount of his payment plan with the company however he will still be required to spend 18 months or so to pay back what he owes as there was a a 20.67% interest sum added to his payment plan with the company.</span>
Answer:
Answer:
Dividend (D) = 4% x $100 = $4
Current market price (Po) = $18
Flotation cost (FC) = $1.50
Tax rate (T) = 40% = 0.40
Kp = <u> D
</u>
Po-FC
Kp = <u> $4
</u>
$18-$1.50
Kp = <u>$4
</u>
$16.5
Kp = 0.24 = 24%
Explanation:
Cost of preferred stock equals dividend divided by the difference between current market price and flotation cost. Cost of preferred stock is not tax deductible.
