Answer:
It would be wise to use the CAPM capital cost.
Explanation:
It should use the Capital Assets Pricing Model.
The market rate is not sufficient. It is included in the CAPM calculation to asses the impact in the firm or industry beta and the free-risk rate.
The return for the dividend grows model is calculated with the current stock price and expected dividends. We can't know for sure if the stock wasn't undervalued or overrated at the moment of solving for return.
The CAPM model takes consideration of the current market interest rate, the own non-diversifiable risk of the firm and the fact of a free-risk interest rate. It is the better option
Answer:
Financial accounting is responsible for preparing the organization's financial statements—including the income statement, the statement of owner's equity, the balance sheet, and the statement of cash flows—that summarize a company's past performance and evaluate its current financial condition.
Explanation:
Hope it Helps
Answer:
debit Unearned Rent Revenue and credit Rent Revenue, $12,000.
Explanation:
Provided information we have,
Rent is received on 1 September 2017 for a period of 1 year on which it is accounted as Unearned Rent amounting $36,000.
Entry on that date would be
Cash A/c Dr. $36,000
To Unearned Rent $36,000
At the end of the year on 31 December 2017, we have period of current year lapsed = 1 September to 31 December = 4 months.
Thus rent income for the year = $36,000 
= $12,000
Therefore this rent of $12,000 will be recognized as rent income for the year 2017.
Entry will be
Unearned Rent A/c Dr. $12,000
To Rent Revenue $12,000
The best valuation technique to reduce the value of Karl's gross estate is C) Special use valuation on the CDs.
<h3>What is special use valuation?</h3>
Special use valuation is a valuation method that determines property value on the basis of its “current use” rather than its “highest and best use.”
Special use valuation is permitted by the Internal Revenue Code (IRC) Section 2032A.
However, the special use valuation method is for real estate and not CDs.
Thus, the best valuation technique to reduce the value of Karl's gross estate is C) Special use valuation on the CDs.
Learn more about the special use valuation method at brainly.com/question/3925584
Based on my knowledge of inflation and its redistribution of purchasing power, I would advise my older parents to embark on Plan B by <u>purchasing a business</u>.
<h3>How does inflation redistribute purchasing power?</h3>
Inflation redistributes purchasing power by giving less value to lenders and savers than to borrowers and investors.
The purchasing power of a fixed money plan decreases. On the other hand, the purchasing power from variable investment changes with inflation.
A business would also increase its value over time more than a fixed investment.
Thus, based on my knowledge of inflation and its redistribution of purchasing power, I would advise my older parents to embark on Plan B by <u>purchasing a business</u>.
Learn more about inflation and purchasing power at brainly.com/question/16467725
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