Answer:
Law created a private national bank and issued paper money, based on the wealth of the French government, in the hopes to pull France out of debt.
-BBBM
Answer:Bad debt expenses will be $2000 on the income statement and Allowance for uncollectible Accounts will be ($3000) on the balance sheet.
Explanation:
The bad debt accounts and allowance for uncollectible accounts are stated in the income and balance sheet statement respectively yearly to monitor activities on collectible debts.
A firm based on his experience determined an estimated percentage of debts outstanding for the year that are likely to go bad. If the new estimate is greater than the previous year, the difference is debited to income statement and if the new estimate is less than the previous year estimate the difference is credited to the income statement.
In the above scenario the new year estimate is greater than previous year by $ 2000 and that lead to $2000 to be debited to income statement.
The balance is made to reflect the total of the new estimate to be deducted from collectible debt and this is why ($3000) goes to the balance sheet.
Answer:
$1,503.75
Explanation:
Sales $12,500
Operating costs $7,025
Operating income (EBIT) $5,475
WACC 9.5%
Tax rate 40%
Investor-supplied capital $18,750
EVA = EBIT(1 - T) - Investor Capital × WACC
EVA = $3,285.00 -$1,781.25
EVA = $1,503.75
Therefore the management add $1,503.75 value to stockholders' wealth during the year.
Answer:
The company's current stock price is $ 18.62.
Explanation:
To calculate the company's current stock price we have to use first the following formula to calculate the: Expected Return of stock
Expected Return of stock = Risk Free Rate+ Beta * Market Risk Premium
Expected Return of stock= 4+1.15*5
=4+5.75
Expected Return = 9.75%
Then, we can calculate the stock price with the following formula:
Price = Dividendat year 1/ Return- Growth
D1 =0.75*105.5%
=0.79125
Price =0.79/( 0.0975-0.055)
=18.62
The price is $ 18.62
