Answer:
The Journal entries are as follows:
(i) On January 1,
Cash A/c Dr. 26,000
To Unearned subscription revenue 26,000
(To record the receipt of the subscriptions)
(ii) On March 25,
Unearned subscription revenue A/c Dr. $500
To subscription revenue $500
(To record the one week of earned revenue)
Working notes:
subscription revenue for 1 week = 260 × 100 × (1 ÷ 52
)
= $500
Answer:
c. An NPV profile graph is designed to give decision makers an idea about how a project's contribution to the firm's value varies with the cost of capital.
Explanation:
NPV is Net Present Value of a project. It basically calculates the entire return on project. It is the discounted value of the net returns of the project. Its graph basically demonstrates the contribution of the project, and its difference in cost of capital.
It clearly assumes to add value to the company's contributions if it is more than 0, accordingly the returns are more than cost of capital if NPV is more than 0.
Answer:
B. Managers mantain order and leaders seek change
Answer:
The floating exchange system
Explanation:
The floating exchange rate is a system where the Forex market determines the currency price of a country relative to other currencies. The forces of demand and supply drive the prices.
In the floating exchange system, governments do not directly fix their exchange rates as they do in the fixed-exchange-rate. However, through central banks' monetary policies, governments try to keep their currency prices competitive for international trade.
Answer:
After tax cost of debt = 5.44*(1-0.35)% = 3.54%
Explanation:
PV = 106
PMT = 6/2 =-3
N = 16*2 = 32 semi annual
FV = -100
Semi annual yield = 2.72%
Annual cost of debt = 2.72%*2 = 5.44%
After tax cost of debt = 5.44*(1-0.35)% = 3.54%
Using Rate function in Excel or Financial calculator
