Answer:
The correct answer would be option C, He will be able to gain knowledge and support from the hotel business to run the franchise.
Explanation:
Franchise is basically a contract between two parties in which one of the party who is owning the business is ready to sell his business rights to use its name and products to the other party. The other party can open the same business with the same name and products or services and run that business. In this type of contract, a continuous help and support is given to the franchisee to run the business. So if John being an entrepreneur wants to enter into the franchise contract, then he will surly be able to gain knowledge and support from the hotel business to run the franchise.
Answer:
b. can be tailored to the needs of the internal user.
Explanation:
Managerial accounting information is basically for internal users, and is not aimed to provide information to external users. It aims of future projections.
It need not follow the US GAAP process, as there is no statutory requirement.
Shareholders are considered external for this purpose, as internal ones are, management, employees, labor etc:
Therefore, it does not help shareholders.
It does not report any kind of business results, it only aims to regulate transactions and accordingly planning future goals.
Therefore, correct option is
b. can be tailored to the needs of the internal user.
Answer:
The answer is 3.3%
Explanation:
Percentage growth rate is
New figure - Old figure /old figure x 100%
Real GDP in 2011 is $15.5 trillion
Real GDP in 2010 is $15 trillion
So we have $15.5 - $15/$15 x 100%
$0.5/$15 x 100%
0.033 x 100%
3.3% is the growth rate between 2011 and 2010.
Alternatively, new figure - old figure - 1
$15.5/15 - 1
1.033 - 1
0.033
Expressed as a percentage
0.033 x 100%
3.3%
Answer:
Payout ratio =1- 12.96%*45%*9/1.4 = 0.6252 or 62.52%
Explanation:
WACC = Weight of Equity * Cost of Equity + Weight of Debt * (1-Tax rate) * Cost of Debt
16% = 45%* Cost of Equity + 55%*(1-40%)*9%
16%-55%*(1-40%)*9% = 45%*Cost of Equity
Cost of Equity = 28.9556%
Current price of Stock = D1/(Cost of Equity - Growth)
25 = 4/(28.9556%-Growth)
Growth = 28.9556%-4/25 = 12.96%
ROE = Net income/Equity = 1.4/(45%*9)
Growth rate = (1- Payout ratio)*ROE
12.96% = (1-Payout ratio)* 1.4/(45%*9)
Payout ratio =1- 12.96%*45%*9/1.4 = 0.6252 or 62.52%
Answer:
Unrealized holding loss - Income (purchase commitments) $ 52,900 Dr
Estimated liability on purchase commitments ( $ 1,001,800 - $ 948,900 ) $ 52,900 Cr
Explanation:
Unrealized holding loss - Income (purchase commitments) $ 52,900 Dr
Estimated liability on purchase commitments ( $ 1,001,800 - $ 948,900 ) $ 52,900 Cr
