Answer:
C Liabilities are understated, and net income is overstated.
Explanation:
To accrue for interest expense, the required entries are;
Debit Interest expense (p/l)
Credit Accrued Interest (B/s)
Being entries to recognize accrued interest expense.
If this is not posted, liabilities and expenses for the period would be understated. As such, net income would be overstated.
Hence the right answer is C Liabilities are understated, and net income is overstated.
Answer:
34 % of the people must already planning to vote for Wanda
Explanation:
Let there are 100 people in the town
It is given that Wanda will convince 25 % of people vote for her
Now let there are x people who are planning to vote Wanda
Then 100-x people are not planning to vote Wanda
She have to convince 0.25 ( 100-x) people to get 50% of the vote and to win
So 
x = 34
So 34 % of the people must already planning to vote for Wanda
Answer:
Cost of equity = 19.1
%
Explanation:
Cost of equity = required rate of return + flotation cost
The Capital assets pricing model would be used to determined the required rate of return
<em>The capital asset pricing model (CAPM): relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c </em>
Using the CAPM , the required rate of return is given as follows:
E(r)= Rf +β(Rm-Rf)
E(r) - required return
β- Beta
Rm- Return on market
Rf- Risk-free rate
DATA
E(r) =? , Rf- 3%, Rm-14% , β- 1.1, flotation cost - 4%
E(r) = 3% + 1.1× (14% - 3%) = 15.1
%
Cost of equity = required rate of return + flotation cost
= 15.1
% + 4% = 19.1
%
Cost of equity = 19.1
%
Answer:
the share should sell at $46
Explanation:
We use the CAPM method to know the required return of the capital
risk free 0.04
market rate 0.1
beta(non diversifiable risk) 2
Ke 0.16000 = 16%
Now we calculate with the dividends grow model the intrinsic value of the share:
$4.6/0.1 = $46
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To know more about the Discretionary visit here :
brainly.com/question/28180292
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