Answer:
Explanation:
The journal entry is shown below:
Cash A/c Dr $344,400
To Unearned subscription A/c $344,400
(Being the advance subscription is recorded)
The computation is shown below:
= Number of subscriptions × magazine cost per year
= 12,300 subscriptions × $28
= $344,400
For the receipt of the subscriptions, we debited the cash account and credited the unearned subscription account
Answer: External secondary data
Explanation:
External secondary data are data gathered and saved by someone or a body that is not part of one's organization. Sources of External secondary data includes published materials, computerised databases and syndicated services.
Note that how difficult or easier it will be getting a secondary data will depend on the methods used in storing and indexing it.
Answer: B. shifting the aggregate demand curve to the right, increasing real GDP and lowering the price level.
Explanation: A low interest rate increases the demand for investment as the cost of investment falls with the interest rate. Thus, a drop in the price level decreases the interest rate, which increases the demand for investment and thereby increases aggregate demand.
Answer:
If Pinnacle was an all equity firm its WACC would be the same as the cost of equity capital which is 15%.Also if it was an all equity firm all the free cash flow would be available to the shareholders as there was no debt and no money needed to be given to the debtors
The formula to find the value of a firm using the FCF is
FCF*(1+G)/WACC-G
14*(1+0.5)/0.15-0.5
=14.7/0.10=147
The value of Pinnacle as an all equity firm would be $147 million
Explanation:
