Answer: The journal entry a company uses to record the issuance of a note for the purpose of converting an existing account payable would be debit Accounts Payable; credit Notes Payable.
Explanation:
Answer:
The value of the stock is $28.57
Explanation:
Data provided in the question:
Dividend paid at the end of the year, D1 = $2.00 per share
Increase in dividend = $1.50 per share
Growth rate, g = 5% = 0.05
Required rate of return = 12% = 0.12
Now,
Price with constant Dividend Growth model = D1 ÷ ( r - g )
= $2 ÷ ( 0.12 - 0.05 )
= $28.57
Hence,
The value of the stock is $28.57
Answer:
If both companies have the sames sales volume, total costs and income from operations, the reason why Gouda has a lower break even point is that their variable costs are lower. We use the contribution margin per unit to calculate the break even point and the contribution margin per unit = sales price - variable costs. The question states that total costs are equal, but it doesn't say anything about variable or fixed costs.
Assuming that Gouda is above break even point, each sale will generate a higher operating profit since the contribution margin is higher.
Explanation:
Answer:
The slope of the consumer's budget constraint is -PA/PB.
Explanation:
The quantity of good A (Q A) is plotted along the horizontal axis, the quantity of good B (Q B) is plotted along the vertical axis.
The price of good A is PA, the price of good B is PB and the consumer's income is I.
The budget line represents the maximum possible bundles of two goods that a consumer can afford by spending his total income. The slope of the budget line will be the ratio of the prices of two goods. It represents the quantity of a good that the consumer needs to sacrifice to increase the consumption of the other good.
So the slope of the budget constraint will be -PA/PB.
Answer: The process of verification is used by schools to confirm that data submitted on the FAFSA form is correct
Explanation:
The process of verification is used by schools to confirm that data submitted on the FAFSA form is correct. When you request the verification, the school would request additional documents to support the information you supplied, this is for clarification and ensuring you are the right person or you own the information.
