Answer:
b. C
Explanation:
It is the rate at which the net present value of all cash flows will be zero. As we know that the higher the discount rate lower will be the present value. The benefit of Higher IRR is company would expect higher rate of return from that project.
Project A has an Internal rate of return(IRR) of 21%.
Project B an IRR of 7%
Project C and IRR of 31%
and Project D an IRR of 19%
Project C will be best because it has highest IRR.
Answer:
a. is often not in the best interest of society.
Explanation:
A monopoly is when there is a single firm operating in an industry. This is usually so because of high barriers to entry of other firms.
Because a monopoly has only one firm in the industry, the firm sets prices to maximise profit. The firm earns economic profit in the short and long run.
The monopoly benefits the producer more than consumers. It is often inefficient and fails to maximise total welfare .
Because of these inefficiencies, government usually steps in to regulate the activities of a monopoly.
I hope my answer helps you.
Answer:
D. under no circumstances
Explanation:
An investment adviser uses his investment knowledge to guide his client with respect to investing in stocks and other securities so as to maximize client's gain.
In return for his services, an investment adviser charges a certain fee from the clients.
As per the Uniform Securities Act, an investment adviser is prohibited from sharing the profits of the client which could be in the form of any dividend/interest receipts or capital appreciation.
Thus, under no circumstances, an investment adviser is permitted to share profits of the client.
Answer:
Cost of retained earnings
= <u>Do(1 + g)</u> + g
Po
= $1.26<u>(1 + 0.06)</u> + 0.06
$40
= 0.0333 + 0.06
= 0.0933 = 9.33%
Explanation:
Cost of retained earnings is equal to current dividend paid subject to growth rate divided by the current market price of common stock plus growth rate
Answer and Explanation:
For preparing the retained earning statement first we have to determine the net income or net loss which is shown below:
= Service revenue - supplies expense - Maintenance and repairs expense - advertising expense - utilities expense - salaries and wages expense
= $7,800 - $1,100 - $690 - $400 - $210 - $1,500
= $3,900
Now the preparation of the retained earning statement is presented below:
Crane Company
Retained Earnings Statement
For the month of June
Beginning balance $ -
Add: Net income $3,900
Less: Dividends ($1,521)
Ending balance $2,379
