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2 years ago

Which of the following is true?

Business

1 answer:

shepuryov [24]2 years ago

5 0

Answer:

The correct answer is letter "A": Overhead costs are often affected by many issues and are frequently too complex to be explained by any one factor.

Explanation:

Overhead is an accounting term used for costs that must be paid, even though the company receives no profits. A company would not be able to survive without paying its overhead expenses but the costs are not connected directly to a product or service being generated. Examples of overhead costs are rent, utilities, office supplies, and maintenance.

Overhead costs are difficult to be traced because they can be assigned to more than one factor.

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Shamas famous restaurants expects to pay a common stock dividend of $1.50 per share next year (d1). dividends are expected to gr

Tpy6a [65]

The company's external equity comes from those funds raised from public issuance of shares or rights. The cost of external equity is the minimum rate of return which the shareholders supply new funds by purchasing new shares to prevent the decline of the market value of the shares. To compute the cost of external equity, we should use this formula:

Ke = (DIV 1 / Po) + g

Ke = cost of external equity

DIV 1 = dividend to be paid next year

Po = market price of share

g = growth rate

In the problem, the estimated dividend to be paid next year is $1.50. The market price is $18.50 and the growth rate is 4%.

Substituting the given to the formulas, we need to divide $1.50 by $18.50 giving us the result of 8.11% plus the growth rate; this would yield to the result of 12.11% cost of external equity.

8 0

2 years ago

pharoah company purchased 200 of the 1000 outstanding shares of sheridan company's common stock for $520000 on january 2, 2021

Anni [7]

The equity investment ( sheridan )account on December 31, 2021 is $5,20,000

As per the fair value technique, equity Investments must be stated at the fair value of the funding at the date of reporting. In this situation there is no fair value, therefore fairness Investments ought to be mentioned at buy charge.

A fair fee is an anticipated charge at which an asset is offered or offered when both the client and seller freely agree on a fee. People and corporations may additionally compare modern-day marketplace value, growth ability, and replacement value to determine the fair price of an asset.

An equity investment is a cash that is invested in an organization by means of buying shares of that organization within the stock market. those shares are generally traded on a stock exchange.

Learn more about fair value here brainly.com/question/16788537

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6 0

9 months ago

Which of the following statements is correct with respect to economic incentives to release financial information?

makvit [3.9K]

Answer:

Explanation:

If investors do not have adequate information about the company they are investing, they would demand an higher rate of return. This would increase the cost of raising capital. So, financial managers who want to raise capital at a cheap rate would have the incentive to disclose information

8 0

2 years ago

In 2016, Sarah (who files as single) had silverware worth $10,000 (basis $6,000) stolen from her home. Sarah's insurance company

-BARSIC- [3]

Answer:

C) None of the $5,000 should be included in gross income.

Explanation:

During 2016, Sarah's itemized deductions (other than the stolen silverware) were only $2,000. If Sarah wanted to deduct the stolen silverware, she could have taken a casualty loss = $6,000 - $100 - $3,000 = $2,900. Her total itemized deductions would equal $2,000 + $2,900 = $4,900.

But during that year, Sarah should have opted for a standard deduction of $6,300 which is higher than her itemized deductions. That means that Sarah didn't claim any deduction for her silverware, so any money received from the insurance company should not be included in her gross income.

5 0

2 years ago

Situation analysis is an ongoing process, referred to as __________.

Veronika [31]

The answer is 'scanning the environment'. Environmental scanning is a process that systematically surveys and interprets relevant data to identify external opportunities and threats.

3 0

2 years ago