Answer:
a. True
Explanation:
The capital account of a soul proprietor is similar to the equity account of a company. It shows how much the business owes the owner.
This includes the amount invested and net income over the years posted as part of the retained earnings.
Net income is the difference between the total revenue and total expenses.
Net income = $220,000 - $150,000
= $70,000
Net balance in capital account = $13,000 + $70,000
= $83,000
Answer: Option (A) is correct.
Explanation:
From the given options, the following actions can be an example of signal designed to reduce the impact of asymmetric information: <em>Money-back guarantee.</em>
A money-back guarantee can be referred to as an essential that guarantee, if a consumer/individual is not satisfied with commodity or service, refund to the respective account will be made. Money-back guarantee reduces the impact of asymmetric information between a consumer and seller.
Answer:
CAPM = 12.30%
Dividend Growth Model= 10.32%
Explanation:
According to the capital asset price model: Expected rate of return = risk free + beta x (market premium)
5% + (0.73 x 10%) = 12.30%
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
$35 = $1.6 x (1.055) / (r - 0.055)
r = 1.688 / 35 + 0.055 = 0.1032 = 10.32%
Answer:
box of money.
Explanation:
it is for money so u can get the money for emergency's
Knowledge , pride and wisdom
