The two most common types of accounts to manage your money are _________ and _________

Being Human, Inc., recently issued new securities to finance a new TV show. The project cost $13.5 million, and the company paid

umka21 [38]

Answer:

0.7684

Explanation:

The computation of debt-equity ratio is shown below:-

Let the amount of equity issued = x

Amount of debt = Project cost + Flotation cost - Amount of equity issued

$13,500,000 + $675,000 - x

Net amount received from equity = Amount of equity issued × (1 - Equity issued percentage)

= x × (1 - 0.065)

= Flotation cost of equity = Amount of equity issued × Equity issued percentage)

= x × 0.065

Net amount received from debt = (Project cost + Flotation cost - Amount of equity issued) × (1 - Debt issued percentage)

= ($13,500,000 + $675,000 - x) × (1 - 0.025)

Conditionally

x × 0.065 + ($13,500,000 + $675,000 - x) × 0.025 = $675,000

0.04 × x + $354,375 = $675,000

0.04 × x = $320,625

x = $8,015,625

Debt = $13,500,000 + $675,000 - $8,015,625

= $6,159,375

Target debt-equity ratio = Debt ÷ Equity

= $6,159,375 ÷ $8,015,625

= 0.7684

6 0

3 years ago

Darell Hair Stylists's adjusted trial balance and statement of owner's equity follow.

il63 [147K]

Answer:

Total Assets = Total Liabilities and Stockholder's Equity = $20,200

Explanation:

An unclassified balance sheet is a type of balance sheet that does not present assets and liabilities under different categories. It only presents all assets in order of liquidity and liabilities in order of the shortness of their terms.

This can be prepared for this question as follows:

Darell Hair Stylists

Unclassifed Balance Sheet

At December 31, 2018

Particulars Amount ($)

Cash 1,000

Accounts Receivable 900

Office Supplies 600

Equipment 19,700

Accumulated Dep. - Equipment (2,000)

Total Assets  20,200 

Accounts Payable 900

Interest Payable 550

Notes Payable 3,400

Common Stock 10,650

Retained Earnings, Dec. 31, 2018 4,700

Total Liabilities and Stockholder's Equity  20,200 

Since Total Assets and Total Liabilities and Stockholder's Equity as it is normally required, that indicates that the unclasified balance sheet has been prepared accurately.

4 0

4 years ago

Allied Corp., a multinational corporation, has spent $500 million on a new data center that allows the firm to transform raw dat

joja [24]

Answer:

The correct answer is: Processing cost.

Explanation:

Processing cost is an accounting term that refers to collecting useful information of manufacturing costs of the units that are being produced. This approach is used in large entities where products are manufactured in masses and those units are almost identical or equal to ease the production process.

4 0

3 years ago

you are considering a project with an initial cash outlay of $80,000 and expected free cash flow of $20,000 at the end of each y

alexgriva [62]

Answer:

Payback period: 4 years

NPV: $87,105

PI: 1.089

IRR: 12.98% (rounded to 2 decimal places)

Explanation:

Payback period is the time taken to recover the initial capital outlay of an investment assuming no interruption of anticipated net cash flow or free cash flow. Computed by dividing initial investment by the anticipated cash flow per year. ($80, 000/$20, 000) = 4 years

Net Present Value (NPV) e is used to analyse the profitability of an investment by discounting future anticipated cash flows. The formula for computing NPV is: [(Cash flows)/(1+r)i] where cash flows is the anticipated cash flow each year,, r is the discount rate, in this case, required rate of return and the i indicated the time period. The NPV is calculated as: [(20,000/(1.1) +20,000/(1.1)^1 +20,000/(1.1)^2 +20,000/(1.1)^3 +20,000/(1.1)^4 +20,000/(1.1)^5 + 20,000/(1.1)^6] = $87, 105

Profitability Index is used to quantify the amount of value created per unit of investment. It is computed as: Net Present Value/ Initial Investment , that is, $87105/$80,000 = 1.089. This means that for every dollar invested, the project generates value of $1.089

Internal Rate of Return (IRR) makes the present value of the project equal to zero. The higher the IRR , the more profitable the project. In this case, the most accurate way this value can be computed is by using a calculator and computing the IRR. N (time period) = 6 , PV(present value of initial investment) = -80, 000, PMT (cashflows per year) = 20,000 Comp I/Y (rate of return) = 12.978%

The variables computed above indicate that undertaking this project would be profitable for the company.

7 0

3 years ago

Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round intermediate calculations. Roun

neonofarm [45]

Answer:

(a) $50,980.35

(b) $5,129.90

(c) $2,400

(d) $50,980.35

(e) $5,129.90

(f) $2,400

Explanation:

A constant payment for a specified period is called annuity. The future value of the annuity can be calculated using a required rate of return.

Formula for Future value of annuity is

F = P * ([1 + I]^N - 1 )/I

P =Payment amount

I = interest rate

N = Number of periods

(a) $1,000 per year for 16 years at 14%

F = $1,000 x ([1 + 14%]^16 - 1 )/14%

F = $50,980.35

(b) $500 per year for 8 years at 7%

F = $500 x ([1 + 7%]^8 - 1 )/7%

F = $5,129.90

(c) $600 per year for 4 years at 0%.

F = $600 x 4

F = $2,400

(d) $1,000 per year for 16 years at 14%

F = $1,000 x ([1 + 14%]^16 - 1 )/14%

F = $50,980.35

(e) $500 per year for 8 years at 7%

F = $500 x ([1 + 7%]^8 - 1 )/7%

F = $5,129.90

(f) $600 per year for 4 years at 0%.

F = $600 x 4

F = $2,400

3 0

3 years ago

The two most common types of accounts to manage your money are _________ and __________.

The two most common types of accounts to manage your money are _ and __.