Answer:
e. Projects with "normal" cash flows can have only one real IRR
Explanation:
Normal cash flow refers to normal expected cash flow from the project, it might be negative, or positive. But generally there is a pattern in such cash flows. Initially they might be negative, but as the project starts getting mature there is positive cash flow.
This is normal circumstance. Under this there is only one real IRR. IRR is represented as the rate of return where present value of inflows = present value of outflows.
Thus, statement is true and correct.
A reduction in retained earnings of $2,950,000.
$37(500,000 x .14) = &2,590,000
Answer:
(C) $464,120
Explanation:
The computation is shown below:
First, Calculate the predetermined overhead rate per hour which equals to
= (Estimated Overhead cost ÷ estimated machine hours)
= ($492,000 ÷ 30,000 hours)
= $16.4 per hour
So, the applied overhead equals to
= Predetermined overhead rate per hour × actual machine hours
= $16.4 per hour × 28,300 hours
= $464,120
Answer:
$2.8 divdends per share
Explanation:
$56 market price
Rate of return 10%
The gain for an investment in stocks is:
In this case we are told that this is distribute evenly, this means:
dividends paid = market price gain
So dividends yield 5% and market price yields another 5% to achieve the 10%
So currently $56 market price x 0.05% = $2.8 divdends per share
Answer:
Competitive advantage is a factor that a business has that allows it to perform better than its competitors by delivering more value to its customers. For example, a company can have a competitive advantage as a result of its offering, customer service or cost structure.
