Answer:
$ 1,001,800
Explanation:
The following costs will be included in th cost of land
Purchase cost: 990,000
Closing cost: 2,900
Back Taxes: 8,900
(land taxes are payed every year, so they can't be included in the cost of land)
Total cost of land= 990,000+2,900+8,900= 1,001,800
Answer:
A. Selection of the appropriate causal variable Y is important
Explanation:
We have this function, Y = f(X).
From this function we can see that Y is dependent on X. That is, it is a function of X. Y is not a causal variable. A causal variable is a variable that is able to influence the variable of interest. From this question Y is the variable of interest. It is the dependent variable. The independent variable is X and it is the causal variable.
Therefore the incorrect one is Selection of the appropriate causal variable Y is important
Answer:
Journal Entry
Cash = $2100
Interest Revenue = 100
Notes Receivable = $2000
Explanation:
We need to find the interest revenue:
$2000 X 0.10 = $200
The time interval from February to August is 6 months. Therefore we have;
Interest Revenue = $200 X (6 months/12 months) = 100.
Sanger's record on August 1 2018, would be:
Journal Entry
Cash = 2000 + 100 = $2100
Interest Revenue = 100
Notes Receivable = $2000
Answer:
a). Future price of stock in five years=$98.97
b). The current stock price will not be affected by an increase of $1 in stock price, this is because increase in stock price is a function of the expected dividend growth rate and not the current stock price
Explanation:
a). Use the expression for calculating the required rate of return as to determine the expected dividend growth rate follows:
RRR=(EDP/SP)+DGR
where;
RRR=required rate of return
EDP=expected dividend payment
SP=share price
DGR=dividend growth rate
In our case:
RRR=10%=10/100=0.1
EDP=$1
SP=$65.88
DGR=y
replacing in the original expression;
0.1=(1/65.88)+y
y=0.1-(1/65.88)
y=0.0848
The expected dividend growth rate=8.48%
Future price of stock=Current price(1+DGR)^n
where;
Current price=$65.88
DGR=8.48%=8.48/100=0.0848
n=5 years
replacing;
Future price of stock=65.88(1+0.0848)^5
Future price of stock=$98.97
b). The current stock price will not be affected by an increase of $1 in stock price, this is because increase in stock price is a function of the expected dividend growth rate and not the current stock price
Answer:
Total profit for units sold for consignor is 15240 $
Explanation:
Revenue generated from the sale is equal to 40 * 750 $ = 30000$. Since this is consignment sale, revenue belongs to consignor minus the commission and expenses of the consignee. Therefore: 30000-1500-500-680 = 27320$. As the cost of each set was 250 and 40 sets were sold, total amount is 10000 and the cost of shipping 40 sets was 2080, total profit is therefore 15240$. The cost of shipping 40 sets we can get if we divide total cost with the number of sets shipped. Then we get cost per unit and since 40 sets was sold the shipping cost of that sale was 2080$.
