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3 years ago

Use the following information to answer this question.

Business

1 answer:

photoshop1234 [79]3 years ago

7 0

Answer:

The correct option is e) 1.56.

Explanation:

Note: The data in this question are merged together. The complete question with the sorted data is therefore provided before asnwering the question. See the attached pdf file for the complete question with the sorted data.

The explanation of the answer is now provided as follows:

The equity multiplier can be described as a financial leverage ratio gives a measure of the total assets of a company that is financed by the shareholders of the company. This can be calculated using the following formula:

Equity multiplier = Total assets / Total Shareholder's Fund ........... (1)

Where, for Bayside, Inc. in 2010, we have:

Total assets = $6,385

Total Shareholder's Fund = Common stock + Retained earnings = $3,020 + $1,070.00 = $4,090

Substituting the figures into equation (1), we have:

Equity multiplier = $6,385 / $4,090 = 1.56

Therefore, the equity multiplier for 2010 is 1.56 and the correct option is e) 1.56.

Download pdf

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The stage of the new-product process that involves developing a pool of concepts to serve as candidates for new-products is refe

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This is known as idea generation

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4 years ago

Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 22% for two years and then at 5% therea

AleksAgata [21]

Answer:

The value of the stock = $19.64

Explanation:

According to the dividend valuation model, the value of a stock is the present value of the expected future cash flows from the stock discounted at the the required rate of return.

Year Workings Present value(PV)

1 $1 × (1.22) × 1.11^(-1) = 1.10

2 $1 × (1.22)^2 ×(1.11)^(-2) = 1.21

3 $1 × ((1.22)^2 × (1.05))/0.11-0.05) = 21.35 ( PV in year 2 terms)

PV (in year 0) of Year 3 dividend = 21.35 × 1.11^(-2)

= 17.33 (see notes)

The value of the stock = $1.10+ $1.21 + 17.3

= $19.64

Notes:

Note the growth applied to year 3 dividend gives the PV in year 2 terms. So we need to re-discount again to year 0.

The value of the stock = $19.64

8 0

3 years ago

Exact Photo Service purchased a new color printer at the beginning of 2018 for $42,700. The printer is expected to have a four-y

MAVERICK [17]

Answer:

Depreciation for 2018 is = $15,120.60

Depreciation for 2019 is = $13,133.84

Depreciation for 2020 is = $10,401.04

Depreciation for 2021 is = $10,660.65

Explanation:

solution

we know here

Depreciation under Units of production method is

Depreciation is = (Cost - Salvage value) × (No of units produced ÷ Expected units of production)

put here value for each year

Depreciation for 2018 is = (42700-1708) × (553300 ÷ 1500000)

Depreciation for 2018 is = $ 15,120.60

Depreciation for 2019 is = (42700-1708) × (480600 ÷ 1500000)

Depreciation for 2019 is = $ 13,133.84

Depreciation for 2020 is = (42700-1708)× (380600 ÷ 1500000)

Depreciation for 2020 is = $ 10,401.04

Depreciation for 2021 is = (42700-1708)× (390100 ÷ 1500000)

Depreciation for 2021 is = $ 10,660.65

5 0

4 years ago

A company sold merchandise with a cost of $217 for $390 on account. The seller uses the perpetual inventory system. The entry

Elden [556K]

Answer:a debit to Cost of Goods Sold and a credit to Merchandise Inventory for $217

( The answer Is not in the options given)

Explanation:

The Perpetual inventory is a method of accounting for inventory which immediately records when an inventory is sold or purchased using the available point-of-sale software systems of the particular business.

In that regard , the entry to record cost of merchandise sold

Account titles Debit Credit

Cost of goods (Merchandise sold) $217

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3 years ago

Mary is in contract negotiations with a publishing house for her new novel. She has two options. She may be paid $100,000 up fro

Mazyrski [523]

Rule I is correct.

Explanation:

Year Cash flow Pv at 8% Discounted cash flow

0 100000 1 100000

1 26000 0.9259 24074.074

2 26000 0.8573 22290.809

3 26000 0.7938 20639.638

4 26000 0.7350 19110.776

5 26000 0.6806 17695.163

From the above calculation, the net present value is $203810.46

Option 1 Option 2

NPV 203810.5 200000

Payback 5 years 0 years

IRR No IRR No IRR

NPV (Net present value) option say that former would be selected

So, answer is Rule I only.

5 0

4 years ago