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Elden [556K]
3 years ago
5

Madison Corporation purchased 40% of Jay Corporation for $300,000 on January 1. On June 20 of the same year, Jay Corporation dec

lared total cash dividends of $75,000. At year-end, Jay Corporation reported net income of $375,000. The balance in Madison's Equity Method Investments—Jay Corporation account as of December 31 should be:
Business
1 answer:
Mandarinka [93]3 years ago
4 0

Answer:

$420,000

Explanation:

Given the above information,

Dividend

= $75,000 × 40%

= $30,000

Share in income

= $375,000 × 40%

= $150,000

Balance in investment account

= Beginning balance + Share in income - Dividend

= $300,000 + $150,000 - $30,000

= $420,000

Therefore, the balance in Madison's equity method investments - Jay Corporation accounts as of December 31 should be $420,000

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A stock expects to pay a dividend of $5.49 per share next year. Dividends are expected to grow at 20 percent per year for the fo
navik [9.2K]

Answer:

The annual dividend expected to be paid by the stock nine years from today (D9) is $11.27 per share.

Explanation:

Note: See the attached excel file for the calculations of annual dividends expected to be paid the stock for Years 1 to 9.

In the attached excel file, the following formula is used:

Current year dividend = Previous year dividend * (100% + Growth rate)

From the attached excel file, the annual dividend expected to be paid by the stock nine years from today (D9) is $11.27 per share (Note: see the bold red color under the Year's 9 Current Year Dividend).

Download xlsx
5 0
3 years ago
Heath Company uses 10,000 units of a part in its production process. The costs to make a part are: direct material, $12; direct
Korolek [52]

Answer: 40,000 to buy the part

Explanation:

Cost to buy : $55/ 10,000= 550,000


Cost to manufacture: (12+25+13+9)=59


The difference: $4/10,000= 40,000

6 0
2 years ago
Which of the following companies has the lowest degree of leverage?
LiRa [457]

The firm with a 20% Debt and 80% Equity has the lowest degree of leverage.

<h3>What is a degree of leverage?</h3>

This means  how much a firm operating income changes in response to a change in sales.

Because the Firm C has a low debt, this means its has the lowest degree of leverage when compared to others.

Therefore, the Option C is correct.

Missing options "90% Debt, 10% Equity

30% Debt, 70% Equity

20% Debt, 80% Equity

50% Debt, 50% Equity"

Read more about degree of leverage

<em>brainly.in/question/8720374</em>

#SPJ1

4 0
2 years ago
If the company were to issue an annual zero-coupon bond with a maturity of 2 years and par value of $1,000, what would be the ar
Contact [7]

Answer:

Note: <em>The complete question is attached as picture below</em>

1a. The one year spot rate can be calculated using the one year zero bond.

PV * (1 + S1) = FV

1 + S1 = 1000 / 900

S1 = 1.1111 - 1

S1 = 0.1111  

S1 = 11.11%

1b. PV of the 2 year bond = $950

Annual coupon = 1000 * 5% = $50

950 = 50 / (1 + S1) + (50 + 1000) / (1 + S2)^2

950 = 50 / 1.1111 + 1,050 / (1 + S2)^2

1,050/ (1 + S2)^2 = 950 - 45 = 905

(1 + S2)^2 = 1050 / 905

1 + S2 = 1.160221/2

S2 = 7.714%

1c. Price of the 2 year zero bond = 1,000 / (1 + 0.07714)^2

Price of the 2 year zero bond = 1,000 / 1.1602

Price of the 2 year zero bond = 861.9203586

Price of the 2 year zero bond = $861.92

3 0
2 years ago
Respond to the following short answer prompt: Imagine you are a lead social science researcher and are responsible for approving
GarryVolchara [31]

Answer:

Answer is given in the explanation

Explanation:

1. Racial predisposition; this research violates very basic ethical code of racial discrimination. There is no way that a researcher can be allowed to target a specific group of people based on their biological race.  This type of discrimination hinders the authenticity of research  and have far reaching repercussions for the target group as well as the whole society.

2. Electroshock therapy; this research’s target population is preteens and adolescents, experimenting such an extreme punishment on them has no justification. This causes direct harm to the children. Besides the electroshock are used on chronic psychic patients not on general public not even adults let alone the preteens.  

3. Health Problems, Diet, and Socioeconomic Status; this research proposal is better than the previous two proposals but it has some ethical regarding the consequences of the publicly published findings. Rather it would be more effective to keep these findings to the policy makers and work for the betterment of the lower status peoples so that they can also eat healthy diet.

6 0
3 years ago
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