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3 years ago

The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2020:

Business

1 answer:

kumpel [21]3 years ago

5 0

Answer:

Explanation:

Please see attached file .

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Martin puts his weekly paycheck into his checking account. In which column should he write the value of his paycheck? A checking

cluponka [151]

Answer:

deposits

Explanation:

8 0

2 years ago

Suppose your employer offers you a choice between a $ 5 comma 000 bonus and 100 shares of the company's stock. Whichever one yo

blagie [28]

Answer:

a) I will pick the shares and sell them ,as this will yield a better return 6,338 to 5,000

b) I will consider:

the expectation on the stock price
and the rate of return in the market
at current price, it will yield 26.76%

Explanation:

100 shares x 63.38 = 6,338 cash bonus for shares

If the stocks should be retained for at least a year.

there are two components that will need consideration:

the expectation on the stock price

and the rate of return in the market

if we assume the stock will keep the same value then it will yield:

6,338 / 5,000 - 1 = 0.2676 = 26.76%

7 0

3 years ago

You have been hired by the CFO of Lugones Industries to help estimate its cost of common equity. You have obtained the following

LekaFEV [45]

Answer:

Under CAPM:

Re = Rf + Beta(Rm - Rf)

Rf = 5%

Rm - Rf = 6%

Beta = 1.25

Re = 5% + (1.25 x 6%) = 12.5%

Under dividend discount model:

Re = (Div₁ / P₀) + g

Div₁ = $1.20

P₀ = $35

g = 8%

Re = ($1.20 / $35) + 8% = 11.43%

Under bond yield plus risk premium approach:

Re = Pre-tax cost of debt + risk premium over its own debt

Pre-tax cost of debt = 7%

risk premium over its own debt = 4%

Re = 7% + 4% = 11%

The highest cost of equity results from the CAPM model and it is 12.5% while the lowest results from using the bond yield plus risk approach (11%), the difference is 1.5% between them.

7 0

3 years ago

Hot Rods, Inc. is an automobile manufacturing company that obtains its automotive parts from the same supplier. The price, quant

Marianna [84]

Answer:

Here the situation can be termed as the straight re buy.

Explanation:

Straight re buy is one of the types of buying situations, where the purchasing and reordering of supplies is made on a routine basis from a particular supplier. Here suppliers are also making efforts on their parts to maintain the quality of product and services and also maintaining a proper automated reordering system which would help in saving time.

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3 years ago

OS Environmental provides cost-effective solutions for managing regulatory requirements and environmental needs specific to the

slava [35]

<u>Solution and Explanation:</u>

<u>The calculation of determining the interest expense that must be recorded in a year end adjusting entry is as follows; </u>

Interest Year Issue Months Note Value Interest

Rate End date Expense

11% Dec-31 Jul-01 6 5,400,000 297,000

9% Sep-30 Jul-01 3 5,400,000 121,500

10% Oct-31 Jul-01 4 5,400,000 180,000

7% Jan-31 Jul-01 7 5,400,000 220,500

The following formula is to be used while calculating the interest expense

(Note Face Value * interest Rate * time period)/12

7 0

3 years ago