Answer:
b. $7,000
Explanation:
Statement of Cash-flow from Financing activities
Particulars Amount
Issue common Stock $110,000
Dividend paid -$3,000
Retirement of bonds payable -<u>$100,000</u>
Net cash flow from financing activities <u>$7,000 </u>
Answer:
C) RE = D1/P0 + g
Explanation:
The formula above is the cost of retained earnings or the cost of equity.
The first portion of the formula (D1/P0) is known as dividend yield which is simply dividend divided by price.
The second part(g) is known as the growth rate of dividends.
The initial formula is rearranged thus:
P0=D1/(RE – g)
P0*(RE – g)=D1
RE – g=D1/P0
RE=D1/P0+g
Answer:
B. $123,000
Explanation:
The computation of the Paul's cost of going to college is presented below:
= Tuition fees + room and board charges + books expenses + earning as a construction job - room and board charges
= $90,000 + $15,000 + $7,000 + $22,000 - $11,000
= $123,000
We simply deduct the room and board charges while working as a construction job and the other items would be added
This evidence will be called 'Note'
Answer and Explanation:
1. The maximum possible subscription price is $60
The maximum price is anything greater than $0
2.Number of new shares
$10,000,000/$50
=$200,000
Number of right shares
$1,000,000/$200,000
=$5
3. Excess right 58.33
(5*60+50)/(5+1)
Value of excess 1.67
($60-58.33)
4.Portfolio value before right offering
2,000×60
= 120,000
Portfolio value after right offering 120,000
(2000×58.33 +2000×1.67 )
