<span>Let us first find out how much of the prepaid subscriptions has been used up during the reporting year. $1548 is for 36 months. So the monthly rate of subscription charges will be 1548/36 = 43. During the reporting year, subscription charges are paid only for 9 months( from April to December) So the amount to be debited to subscription charges = 43 * 9 = 387. Subscription charges will be debited with $ 387 and prepaid subscriptions account will be credited with the same amount. The remaining amount, 1548-387=1161, will remain in prepaid subscriptions account as a debit balance.</span>
Answer:
the net cost of debt to a firm is generally less than the cost of equity.
Explanation:
If we assume both, investor in firms and lender to firms want's a certain return x
because the lender return (the interest) are tax deductible the net cost of debt will be: x ( 1 - t)
where t is the tax rate being rate beteen 0 and 1
as 1 less a fraction will be less than 1 we can stablish that:
x > x(1 - t)
x is the cost of equity
while x(1-t) is the net cost of debt
therefore, the cost of debt is lower than cost of equity.
Answer:
Consider the following thoughts
Explanation:
- No. the market is a semi-strong form of efficient.
The semi-strong form of efficiency states that the market is efficient.
- Yes, the historical information is also called as a public information.
- Weak form of efficiency is a another class of the semi-strong form of efficiency.
- If a market is strong form efficient, then it is also semi-strong and weak form efficient since all available information includes past prices and publicly available information.
- The semi-strong form also incorporates the weak form of hypothesis.
- They include event tests.
Answer:
EAR = 8.24%
Explanation:
EAR = (1+APR/n)^n-1
Where n is number of compounding per year = 4
EAR = (1+8%/4)^4 - 1
EAR = (1 + 0.02)^4
EAR = (1.02)^4
EAR = 1.08243216 - 1
EAR = 0.08243216
EAR = 8.24%
Answer:
B) False
Explanation:
Not necessary. Every transactions has two parts recorded as a debit and a credit.
If the purchases of US assets (credit to US capital account, broadly include Treasury bonds, businesses and land) are funded by the sales of goods and services (debit to US current account) then it will push the US balance of payments down.
However, if those purchases are funded by the sales of foreign assets to US investors (debit to US broadly defined capital account), then it will not affect the US BOP negatively. It's the cross ownership of international investors in US assets and US investors in international assets.
