Answer:
c. 42.6%
Explanation:
Average total assets = $410,000+$257,000/2
Average total assets = $667,000
Average total assets = $333,500
Net income = $112,000
Interest expenses = $30,000
Return on total assets = Net income + Interest expenses / Average total assets
Return on total assets = $112,000 + $30,000 / $333,500
Return on total assets = 0.42388060
Return on total assets = 42.39%
Answer:
A total of $880,000 would be classifiad as a long-term liability.
Explanation:
Long-term liabilities are also known as non-current liabilities.
Long-term liabilities consist of all the liabilities that are not due within a year, in other words, that can be paid off for a period of time longer than six months.
In this case, only $20,000 of principal of a total of $900,000 are paid over the first year. The remaining principal payment of $880,000 (plus any interest), is to be paid over the next 29 years, and for this reason, these payments will be recorded in the balance sheet as long-term or non-current liabilities.
Answer:
the expected return on the stock is 8.675%
Explanation:
The computation of the expected return on the stock is shown below:
The Expected return on the stock is
= Current year dividend ÷ Price of the stock + growth rate
= ($1.75 × 1.035) ÷ $35 + 3.5%
= 8.675%
Hence, the expected return on the stock is 8.675%
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Par value is the face value of a bond.
