Answer:
11.06%
Explanation:
According to the given situation, the computation of the required return on the stock is shown below:-
Required rate of return = Current Dividend × (1 + growth) ÷ Current Price + Growth
= $4.01 × (1 + 4.7%) ÷ 66 + 4.7%
= 11.06%
Therefore for computing the required rate of return we simply applied the above formula.
Answer:
Loss = $122,881
Explanation:
Relevant Data provided
Bay Back Price of the bond = $103,000
Carrying value of the Bond As on 12/31/2022 = $225,881
As per the given question the solution of gain or loss is provided below:-
Gain or Loss = Bay Back Price of the bond - Carrying value of the Bond As on 12/31/2022
= $103,000 - $225,881
Loss = $122,881
So, we have calculated the loss by using the above formula.
Answer:
Kandice may keep the house because there has been partial performance.
Explanation:
Jessica verbally agreed to sell her house to Kandis and even collected a part payment for the agreement. So there is an enforceable contract that has been partially fulfilled when Kandi's made a down payment of $10,000.
If Jessica want to get her house back 7 months later she may not be able to do so because there has been partial performance.
Also Kandi's has made renovations in the house. This is an extra cost incurred and will be damages if Jessica insists on getting the property back
Answer:
1. Indication of financial statement to refer to when answering questions in the following table:
Question Financial Statement
How profitable has the firm been? Income Statement
How much of the firm's earnings are Statement of Retained Earnings
left as balance after the firm pays out
dividends to its shareholders?
2. If compensation for senior management is based on short-term performance of the firm, in the short run the firm is likely to:
a. Overstate its earnings
Explanation:
Company A's Income Statement shows its profit performance at different levels. At one level is the gross profit, which shows the difference between the net sales or service revenue and the cost of sales/service. At another level is the operating income, which is the income before interest and taxes. The next important level is the net income, which is the profit after taxes. This shows the earnings available for distribution to stockholders. The Statement of Cash Flows classifies the cash flows generated into operating, investing, and financing activities, and shows the non-cash flow adjustments.
Answer:
Current ratio will be overstated
Explanation:
Current ratio measures the short term solvency of a firm. In other words, it measures the ability of the firm to meet its current obligations. It is the ratio of current assets to current liabilities.
A part of long term liability that is to be paid this year is considered current liabilities. If today's fashion continues to report debt due in the current year as long term liability, then current liabilities reported would be lesser than the actual position. As such, current ratio calculated would be higher than what it is actually. So, current ratio will be overstated in this case.