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3 years ago

What was the initial problem in this case?

Business

1 answer:

salantis [7]3 years ago

8 0

Answer:

The initial problem of this question is you left out a bunch of context of what you are asking about.

Explanation:

learn how to use this website please.

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. AEC Company issues common stock that is expected to pay a dividend over the next year of $2 at a stock price of $20 per share

8090 [49]

Answer:

A) 5.0%

Explanation:

AEC Company expects to pay a dividend over the next year of $2 at a stock price of $20 per share, thus the dividend rate over next year = $2/ $20 = 10%

The WACC is 12%, the company is financed by 30% debt and 70% equity, and the cost of debt is 5%;

WACC 12%= 30% x cost of debt 5% + 70% x cost of equity

->Cost of equity = (12% -30%*5%)/70% = 15%

Thus expected growth rate of dividend = Cost of equity 15% - dividend rate over next year 10% = 5%

4 0

3 years ago

Preparing an Accounts Payable Schedule Wight Inc. purchases raw materials on account for use in production. The direct materials

Luda [366]

Answer:

Cash payment expected for May $387,350.00

Cash payment expected for June $413,255.00

Explanation:

The question is centered around the preparation of cash budget.

Note that the principles are simply that only items of cash paid or received should be captured in the cash budget. So you should avoid items like depreciation, provisions e.t.c
Also, the cash flows are captured at the time the they occur.

So applying these principles, we can prepare the Expected Cash Payment Schedule for Wight Inc as follows:

Expected Cash Payment Schedule

Installment Workings May

Month of billing 35% * 411,400 143,990

Next Month(for April purchases ) 65%*374,400 243,360

Cash payment for May 387,350

Installment Workings June

Month of billing 35% * 416,700 145,845

Next Month(for May) 65%*411,400 267,410

Cash payment for June 413,255.00

Cash payment expected for May $387,350.00

Cash payment expected for June $413,255.00

3 0

3 years ago

Read 2 more answers

Jones Manufacturing purchased $10,000 of merchandise inventory on account from a vendor and paid a $500 freight bill. The credit

yKpoI14uk [10]

Answer:

What is the final cost of the merchandise inventory for Jones Manufacturing from this purchase?

$8340

Explanation:

Purchased_________________________ 10000

Freigth Bill_________________________ 500

Credir terms________________________ 2/10 n/30

Returned __________________________ 2000

Purchase____________________________ 10000

Return____________________________ 2000

Net inventory 8000

Discount %_________________________ 2%

Discount ___________________________ 160

Net inventory_______________________ 7840

Freigth Bill_________________________ 500

Final cost__________________________ 8340

6 0

4 years ago

Presented below is information for Wildhorse Co. for the month of January 2017 Cost of goods sold Freight-out Insurance expense

blsea [12.9K]

Answer and Explanation:

The Preparation of income statement using the multi-step format is prepared below:-

Wildhorse Co.

Income statement

using the multi-step format

Particulars Amount

Sales $396,000

Less: Sales discount $8,400

Less: Sales and return

allowances $18,500 $26,900

Net sales $369,100

Less: Cost of goods sold $208,700

Gross profit $160,400

Operating expenses

Freight out expenses $9,200

Insurance expenses $12,700

Salaries and wages

expenses $60,700

Rent expenses $33,800

Total operating expenses $116,400

Income before income taxes $44,000

Income tax expenses $5,500

Net income $38,500

So, to reach at net income we simply deduct the income tax expenses from income before income taxes.

7 0

3 years ago

Welch men's clothing's revenues and cost data for 2017 are as follows: mr. welch, the owner of the store, is unhappy with th

monitta

180000 cost fixed amount

4 0

3 years ago