Answer:
So option (b) is correct option
Explanation:
We have given value of operation PV = $25.00
WACC, that is 
= 11.50% = 0.1150
It is grow at a constant rat of 7 % so g = 0.07
We have to find the value of 
We know that value of operation is given by
So 
So option (b) is correct option
Answer:
The complete answers are below.
Explanation:
a) The main difference between Financial Accounting and Managerail Accounting is its purposes and the stakeholders who make use of the information that each one provides.
While financial accounting refers to the aggregation of accounting information in the financial statements, management accounting refers to the internal processes used to account for business transactions.
For instance: Financial accounting reports on the results of an entire business, Managerial accounting reports at a more detailed level. Financial accounting must comply with various accounting standards, whereas managerial accounting does not have to comply with any standards when information is compiled for internal consumption.
b) The financial statements most frequently provide are: Balance Sheet or Financial Position, Income Statement, Statement of cash flows and Statement of Changes in Equity.
c) In general, financial reports and financial statements differ in the formal status of financial statements in business and accounting, and these respond to standards such as GAAP and IFRS. While the financial reports have a format or presentation rules given by management, the financial statements, in the other hand, are prepared on regular basis as specific entities are required to do so according to applicable laws. It can be said that financial accounting provides financial statements and managerial accounting is responsible for financial reports.
1. Choice (a) is correct. In a real-life labor union strikes, it usually begins with a notice of strike to be sent to an employer within 60 days known as the cooling-off period. Then, labor unions' strikes begin. If they feel that they are ignored by the employer, then picketing happens. Labor unions carry signs and other rally paraphernalia in the premises of the employer informing the public about their sentiments towards the employer. In this case, the employer will ask the labor union to reach an agreement through collective bargaining agreement.
2. Choice (a) is correct. The management has three tools to use in case of disagreement. These are an injunction, lockout, and hiring replacement workers. An injunction is a judicial order telling the person from doing so. A lockout is a temporary work stoppage or denial of employment. Hiring replacement workers simply mean looking for another competent worker that can do the job of the vacated position.
Answer:
Second National Bank
Present value (PV) = $5,400
Future value (FV) = $13,900
Interest rate (r) = 10% = 0.10
FV = PV(1 + r)n
$13,900 = $5,400(1 + 0.10)n
<u>$13,900</u> = (1.10)n
$5,400
2.574074074 = (1.10)n
Log 2.574074074 = n log 1.10
<u>Log 2.574074074</u> = n
Log 1.10
n = 9.9 years
None of the answers is correct
Explanation:
In this case, we will apply the formula of future value of a lump sum. The present value, interest rate and future value were provided with the exception of number of years. Thus, the number of years becomes the subject of the formula. The future value equals present value, multiplied by 1 plus interest rate, raised to power number of years.
Answer:
Sustainable Growth Rate: 2.5%
Explanation:
Sustainable growth rate is calculated by multiplying return on equity with retention ratio.
Logic behind above is that whatever portion of net profit is retained by the Company, is used in the Company's operations, which earns certain percentage of equity known as return on equity. By multiplying both return on equity with retention ratio, we assume that the practice will continue for foreseeable future and the Company will continue to grow at the calculated growth rate.
Growth rate = Retention ratio * return on equity
Retention ratio = 50%
Return on equity = Net profit available for distribution / Opening equity
Return on Equity = (25,000 * 10%) / 50,000
Return on Equity = 5%
Growth Rate = 5% * 50%
Growth Rate = 2.5%
