Answer:
e. Projects with "normal" cash flows can have only one real IRR
Explanation:
Normal cash flow refers to normal expected cash flow from the project, it might be negative, or positive. But generally there is a pattern in such cash flows. Initially they might be negative, but as the project starts getting mature there is positive cash flow.
This is normal circumstance. Under this there is only one real IRR. IRR is represented as the rate of return where present value of inflows = present value of outflows.
Thus, statement is true and correct.
The cost of the preferred stock including flotation is 13.37%.
Explanation:
The computation of the cost of the preferred stock is shown below:
= Annual dividend ÷ Price × (1 - flotation cost)
= $11 ÷ 87.50 × (1 - 0.06)
= $11 ÷ $82.25
= 13.37%
Hence, the cost of the preferred stock is 13.37%.
Learn more about flotation here :
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Answer:
Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2020. Owner Santana Rey contributed $31,000 to the business in exchange for additional stock in the first quarter of 2020 and has received $4,100 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.)
Explanation:
Answer:
Explanation:
The preparation of the partial balance sheet for Sage at December 31, 2020 is presented below
NASH COMPANY
Partial Balance Sheet
At December 31, 2020
Current liabilities
Notes payable $3,176,480
Long term debt
Note payable refinanced in the year 2021 $3,867,520
The computation is shown below:
For note payable i.e shown in the current liabilities is
= $7,044,000 - $6,043,000 × 64%
= $3,176,480
And, the refinanced note payable is
= $6,043,000 × 64%
= $3,867,520
Answer:
The correct answer is letter "A": determines that expenses related to revenue be reported at the same time the revenue is reported.
Explanation:
According to the matching accounting principle, during the same accounting period, the revenues and expenditures needed to generate such revenues have to be recorded. This is part of the accrual accounting method that specifies expenses and revenue must be recorded when incurred not when cash is received.
