Answer:
11.06%
Explanation:
According to the given situation, the computation of the required return on the stock is shown below:-
Required rate of return = Current Dividend × (1 + growth) ÷ Current Price + Growth
= $4.01 × (1 + 4.7%) ÷ 66 + 4.7%
= 11.06%
Therefore for computing the required rate of return we simply applied the above formula.
Answer:
b. inventory for $600
Explanation:
Before giving the answer, first we have to compute the amount which is shown below:
= (Purchase amount of inventory - the cost of returned goods) × discount rate
= ($33,000 - $3,000) × 2%
= $30,000 × 2%
= $600
Since the payment is made within 10 days. So, Elkins can avail of the 2% discount.
This transaction would credit the inventory for $600 as in the perpetual inventory method the amount of discount is adjusted to the inventory amount.
The journal entry is shown below:
Accounts payable A/c Dr $30,000
To Cash A/c $29,400
To Inventory A/c $600
(Being the amount is paid and the difference would be credited to the cash account)
<span>False. Contractual capacity includes the financial ability to pay for the benefits of a contract.
A contractual capacity is being able to have a legally binding contract. Some people are able to have one and some are not depending on their mental capacity/state of mind. Convicts, those under the influence and mentally handicap are unable to have contractual capacity. </span>
A. The initial investment is a significant cash outflow that is treated separately from all other cash flows
Answer:
$111.53
Explanation:
CPI is a statistic applied to measure the average cost of a basket of usually-used goods and services in a period relative to some base period.
Consumer Price Index (CPI) =
=
Therefore, The value of the CPI in 2016 was $111.53 taking 2014 as base year.