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sweet [91]
3 years ago
10

An increase in a firm's expected growth rate would cause its required rate of return to a. decrease. b. fluctuate more than befo

re. c. increase. d. possibly increase, possibly decrease, or possibly remain constant. e. fluctuate less than before.
Business
1 answer:
RSB [31]3 years ago
4 0

Answer:

d. possibly increase, possibly decrease, or possibly remain constant

Explanation:

The expected growth rate of a firm is only one input for the calculation of required return. The other factors include the price of the stock and the expected dividend.

If all others are held equal, an increase in the growth rate will cause the required return to increase, but if the dividend increases with the expected growth rate, this have the effect of decreasing the return rate.

So the increase in the firm’s expected growth rate would cause its required return rate to possible increase, possible decrease or possibly remain constant.

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3 years ago
At the end of 2021, Kingbird Co. has accounts receivable of $762,000 and an allowance for doubtful accounts of $22,520. On Janua
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Answer:

a. Debit Allowance for doubtful debt $4,398

   Credit Accounts receivable $4,398

   Being entries to write off receivable due from Madonna Inc.

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Explanation:

When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.  

To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

The realizable value of accounts receivable before the write off is the net of the accounts receivable and the allowance for doubtful debt

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= $739,480

This amount remains the same after the write off as the write off will reduce the balances in both the allowance for doubtful debt account and accounts receivable.

6 0
3 years ago
Which of the following statements is true about an ATM card?
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Suppose you graduate with an accounting degree and then become a certified public accountant. You work for a big firm, but are o
alisha [4.7K]

Answer:

The answer is: marginal tax rate

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The IRS uses tax brackets to determine how much taxes you owe. As your gross income increases and you pass to the next tax bracket, your tax rate also increases.

For example, a single filer who earns $75,000 a year will have a 22% tax rate. If his income increases to $85,000, then his tax rate will be 24%.  

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3 years ago
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