These transactions would be recorded in the <span>non-cash investing and financing activities. Since this that does not directly affect the cash on hand, instead, the</span> issuance of common stock to retire long-term debt is done.
Answer:
1. Nature of commodity
2. Availability of substitutes
3. Income level
4. Postponement of consumption
5. Number of uses
6. Share in total Expenditure
7. Time period
Explanation:
Answer:
a-1) Pv = 52549
a-2) Pv = 56822
b-1) Fv = 77570
b-2 Fv = 83878
Explanation:
b-1) Future value:
S= Sum of amount of annuity=?
n=number of fixed periods=5 years
R=Fixed regular payments=13200
i=Compound interest rate= .081 (suppose annualy)
we know that ordinary annuity:
S= R [(1+i)∧n-1)]/i
= 13200[(1+.081)∧5-1]/.081
=13200(1.476-1)/.081
= 13200 * 5.8765
S = 77570
a.1)Present value of ordinary annuity:
Formula: Present value = C* [(1-(1+i)∧-n)]/i
=13200 * [(1-(1+.081)∧-5]/.081
=13200 * (1-.6774)/.081
=13200 * (.3225/.081)
=52549
a.2)Present value of ordinary Due:
Formula : Present value = C * [(1-(1+i)∧-n)]/i * (1+i)
= 13200 * [(1- (1+.081)∧-5)/.081 * (1+.081)
= 13200 * 3.9822 * 1.081
= 56822
b-2) Future value=?
we know that: S= R [(1+i)∧n+1)-1]/i ] -R
= 13200[ [ (1+.081)∧ 5+1 ]-1/.081] - 13200
= 13200 (.5957/.081) -13200
= (13200 * 7.3544)-13200
= 97078 - 13200
= 83878
Answer:
Option E
Explanation:
In simple words, the given case illustrates the cost analysis method for choosing target market segments. Under such criterion of selection, the subject company identifies various costs that it must bear in order to operate in some potential segment and after identifying those cost, such company evaluates if there will be any profit left for them in the market.
This method is complex, time consuming and needs experts advise but still is most popular nowadays as it gives most accurate results by identifying various quantitative and qualitative factors.
The existence of pre-tax cost of debt and post-tax cost of debt is due
to the acknoledgement of the tax benefit from issuing debt.There is no
tax benefit from paying divdends,so it makes no sense talking about
pre-tax,post-tax cost of equity for a firm.When you think about cash
flow to equity you can only assume that the taxes owed by the company
have already been paid.Now, the taxation over the income of the
shareholder is a whole different issue that does not take place in this
discussion,since it is not taken in consideration either in cost of
equity or cost of debt.
