Answer:
a. Owner
b. Partners
c. Stakeholders
Explanation:
The key users of financial information of a proprietorship is the owner.
The key users of financial information of a partnership are partners.
The key users of financial information of a corporation are the stakeholders.
In a proprietorship the owner invests, manages and gains profit from the organization.
In a partnership the partners invest, manage and each partner gain profits from the organization.
While in a corporation the shareholders invest, the employees manage and the profits made are gained by the shareholders in the form of dividends.
Answer:
cost of capital 16%
Explanation:
SML formula:
r_f = 3%
β = 1.3
r_m = 13%
0.03 + 1.3(0.13-0.03)
firm's required return = .16 = 16%
Answer:
The correct answer is B
Explanation:
The journal entry recorded for the conversion of the shares is as:
Common Share A/c......................................Dr $51,500
Preferred Stock A/c...........................................Cr $50,000
Paid in capital in excess of par (Common)....Cr $1,500
Being conversion of stock into common share is recorded
As the shares are converted into common stock from preferred stock, so the common stock is debited against the preferred stock which is credited. And the excess amount is credited by the account of paid in capital in excess.
Answer:
The effective annual rate is 10%
Explanation:
Future value = Present value * (1+r)^n
(1+r)^n = Future value / Present value
r = (Future value / Present value)^n - 1
Here r is the rate
Substitute the values as below
r = (Future value / Present value)^n - 1
r= ($100,000 / $97,654)^4 - 1
r = 1.10000 - 1
r = 0.10000
r = 10%