Answer:
Explanation:
Using the dividend growth model = Do(1+g)/Ke-g
Do=1.62$
G=4%
Ke=12%
Do(1+g)/Ke-g = 2.0736(1+4%)/12%-4%
= 1.6848
/8%
= 53.916
Year Year Year Year Year
0 1 2 3 4
20% 20% 20% 20%
Dividend 1 1.2 1.44 1.728 2.0736
Ifninty dividend 55.91*
Total Cashflows 1 1.2 1.44 1.728 55.98
Pres.Val @12% 1 1.07142 1.14795 1.22995 35.583
Value of stock 40.030
Answer:
c. 10%
Explanation:
Margin of safety is the sales value at which the business is safe from making loss. It measures the profit after the break-even point. The sales over the break-even point is considered as the margin of safety.
Margin of safety = Actual Sales - Break-even point = 12,500 units - 11,250 units = 1250 units
Percentage of margin of safety to sales = Margin of safety / Actual sales
Percentage of margin of safety to sales = 1,250 / 12,500
Percentage of margin of safety to sales = 0.10
Percentage of margin of safety to sales = 10%
Answer:
The correct answer is All of the options are true.
Explanation:
Proforma financial statements are projected statements. Generally, the data is forecast one year in advance, for example, in a transformation company the proforma status obtained based on the master budget is very complete, all projections are seen starting with the sales forecast and from this They make the other projections.
The Proforma Financial Statements are states that contain, in whole or in part, one or more assumptions or hypotheses in order to show what the financial situation or the results of the operations would be if they occurred.
Answer:
Explanation:
The journal entry is shown below:
Bonds payable A/c Dr $640,000
Premium on bonds payable A/c Dr $23,970
Loss on bonds redemption A/c $8,030
To Cash A/c $672,000 ($640,000 × 1.05)
(Being the redemption of bond is recorded and the remaining balance is debited to the Loss on bonds redemption account)
The Premium on bonds payable is computed below:
= Carrying value of the bonds - face value of the bond
= $663,970 - $640,000
= $23,970
Answer:
Following high-profile corporate scandals including Enron and WorldCom, Congress
passed a set of legislations known as the Sarbanes-Oxley Act which requires the
disclosure of the presence or absence of a Code of Ethics for senior financial officers.
Explanation:
The Sarbanes-Oxley Act of 2002 is a federal law that established sweeping auditing and financial regulations for public companies. Lawmakers created the legislation to help protect shareholders, employees and the public from accounting errors and fraudulent financial practices.
