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2 years ago

The discount rate includes ________ in the basic valuation model.

Business

1 answer:

Lana71 [14]2 years ago

4 0

Answer:

c. risk

Explanation:

The discount rate usually stands for the opportunity cost of investing elsewhere or the cost of sourcing finance. therefore, it includes a risk component.

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Big Tommy Corporation is a local grocery store organized seven years ago as a corporation. The bookkeeper prepared the following

Natali [406]

Answer:

Big Tommy Corporation

Profit and Loss for the year ended December 31

Sales 404,000

Cost of Goods Sold 279,000

Gross Profit 125,000

<em>Operating Expenses:</em>

Salaries and Wages Expense 58,000

Office Expenses 16,000

Travel Expenses 1,000 75,000

Operating Income: 50,000

Non-Operating Expenses

Income Tax Expense 15,000 15,000

Net Income 35,000

Explanation:

Multistep income statement makes a clear distinction on Operating Incomes and Expenses and Non-Operating Incomes and Expenses

Operating income is Profit generated from Primary activities of the company

Non-Operating Incomes and Expenses do not relate to the Primary activities of the firm.They occur as a result of secondary activities.

7 0

2 years ago

Barbara and the bank signed a contract in which they agreed that the bank would loan $100,000.00 to Barbara to buy a car. She wo

Afina-wow [57]

Answer:

Option A

Explanation:

A Novation is a form of contract in which the original contract is substituted by a replacement contract where by the new party agrees to accept all the debts to be paid as a part of the original contract.

In other way the original contracting party give all the rights and obligations to the new party

Hence, Option A is correct

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2 years ago

In 2019, Dan transferred 5-year property to Fleck Corp. in a tax-deferred Section 351 transaction. Fleck took Dan's adjusted bas

irina1246 [14]

Answer:

The property will be depreciated using the remaining 3 years of its life after the tax-free incorporation transfer year. This is because Dan had already depreciated the property for 2 years before the transfer.

Explanation:

Sec. 351 allows a tax-free incorporation transfer if certain requirements are met, including that the property must be transferred to Fleck Corporation by Dan in exchange for stock in Fleck Corporation, and, immediately after the exchange, the Fleck Corporation is in control.

7 0

2 years ago

Global Corporation had 58,000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors

wolverine [178]

Answer:

Jul-01

Dr Retained Earnings $324,800

Cr Common stock dividend distributable $232,000

Cr Paid-in capital in excess of par value - Common stock 92,800

Explanation:

Preparation of the journal entry to record the dividend declaration is:

Jul-01

Dr Retained Earnings $324,800

(58,000 shares x 20% x $28)

Cr Common stock dividend distributable $232,000

(58,000 shares x 20% x $20)

Cr Paid-in capital in excess of par value - Common stock 92,800

(58,000 shares x 20% x $8)

8 0

2 years ago

Ruben, Gerald, and Norma all work for the same company. Gerald and Norma both evaluate the company’s financial picture, but Gera

dmitriy555 [2]

Answer:

The correct answer is (B)

Explanation:

Trust homie

7 0

2 years ago

Read 2 more answers