Answer:
July 1, 2020
Dr. Account Receivable $56,000
Cr. Sales $56,000
July 9, 2020
Dr. Cash $54,880
Dr. Sales Discount $1,120
Cr. Account Receivable $56,000
Explanation:
Credit terms of 2/10, n/30 means there is a discount of 2% is available on payment of due amount within discount period of 10 days after sale with net credit period of 30 days.
As Payment of $56,000 is received within the discount period. So, the discount will be
Discount = $56,000 x 2% = $1,120
Amount Paid = $56,000 - $1,120 = $54,880
Answer:
Additional premium is 3%
Explanation:
Without debt the shareholders' rate is computed thus:
Ke=Rf+beta*(Mrp-Rf)
Ke=4.5%+1.0*(5%)
Ke=9.50%
With debt financing added to the capital structure, the equity beta changes to 1.6,the shareholders' expected return is computed thus:
Ke=4.5%+1.6*(5%)
Ke=12.5%
The additional premium required is the increase in expected return of 3%(12.5%-9.5%)
The 3% is to compensate the equity shareholders for taking the risk of getting little or no dividends at all because the debt-holders interest must be paid first
Answer:
Transactional leadership style
Explanation:
Transactional leadership style is where the leader is focused on the overall goals of the company and getting things done instead of building a more long term social relationship. The leader is focused on a more professional relationship which benefits all the involved parties in such a way that is limited to the company only.