Answer: $6800
Explanation:
Based on the information that has been given in the question, Interest will be calculated as:
= $200,000 × 7% × 6/12
= $200,000 × 0.07 × 0.5
= $7,000
We then calculate the premium ammortizaion which will be:
= ($202,000 - $200,000) / 5 × 2
= $2000 / 5 × 2
= $2,000 / 10
= $200
Therefore, the interest expense to be recorded will be:
= $7,000 - $200
= $6,800
whaatt? um me? ._. is this even a question?
Answer:
A firm with financial leverage has a larger equity multiplier than an otherwise identical firm with no debt in its capital structure.
Explanation:
The equity multiplier basically tells us what portion of the company's assets were financed through equity, i.e. what portion was financed by the company's owners.
the formula to determine the equity multiplier = total assets / total equity
the higher the equity multiplier, the higher the return on equity (ROE), but a high equity multiplier (financial leverage) also increases the company's risk since eventually it might not be able to pay off its creditors if something goes wrong.
Answer:
B. A type of shirt that sold for $10 in 2000 costs $15 in 2020
Explanation:
Inflation is a measure of the rate of rising prices of goods and services in an economy.
Sherrie wants to put the original money in an account with a higher interest rate. Explain which method will result in more money.
Answer: In this case I would say that both Sherrie and Harrison are good methods that will result in more money. As to find out which idea would make the most bang for the buck we would need actual data like interest rates.
I hope it helps, Regards.
