All categories

2 years ago

If Creative Analysis, Inc. decides to maintain a constant debt-equity ratio, what rate of growth can they maintain?

1 answer:

5 0

Answer: If Creative Analysis, Inc. decides to maintain a constant debt-equity ratio, what rate of growth can they maintain? 4.82percent

Explanation:

Sustainable growth = {[$540 / ($3,000 + $1,700)] [$216 / $540]} / {1 {[$540 / ($3,000 + $1,700)] [$216 / $540]}} = .04817 = 4.82 percent

You might be interested in

Suppose the following bond quotes for IOU Corporation appear in the financial page of today’s newspaper. Assume the bond has sem

wlad13 [49]

Answer:

a. 4.89%

b. 5.23%

Explanation:

We use the rate formula which is shown in the attached spreadsheet

Given that,

Present value = $2,000 × 108.96% = $2,179.20

Future value or Face value = $2,000

PMT = $2,000 × 5.7% ÷ 2 = $57

NPER = 16 years × 2 = 32 years

The formula is shown below:

= Rate(NPER;PMT;-PV;FV;type)

The present value come in negative

So, after solving this,

a. The yield to maturity of the bond is 4.89%

b. The current yield would be

= 57 × 2 ÷ $2,179.20

= 5.23%

4 0

2 years ago

A major bank has an application where customers can see their balances in their checking accounts, the positions in their broker

Leokris [45]

Answer:

The correct answer is letter "D": The customer service center.

Explanation:

The customer service center is a web attractor that allows customers to self-assist in basic operations or by accessing basic data of their own. Balances, statements, payment history, and recent transactions are among the information consumers can access to in a blink of an eye thanks to this online data feed. In case a piece of information is unclear, this feed usually has direct access to reach a customer service representative for an explanation.

5 0

2 years ago

Record the following transactions of Sumanto, Kochi in Two-column Cash Book and balance the book on 31st January, 2018: 2018 Jan

aleksley [76]

Answer:

Sumanto, Kochi

Two-Column Cash Book

Date Description Cash Bank Dis. Date Description Cash Bank Dis.

All'd Rec'd

Jan. 1 Balance 1,000 14,500 Jan. 2 Bank 50,000

Jan. 1 Shares 60,000 Jan.14 Stationery 500

Jan. 2 Cash 50,000 Jan.18 Purchase 6,720

Jan. 8 Mohan 9,800 200 Jan.19 Shyam 3,700 300

Jan.20 Bank 3,000 Jan.20 Cash 3,000

Jan.24 Sales 1,900 Jan.22 Drawings 2,000

Jan.27 Sharma 18,000 500 Jan.28 Bank 15,000

Jan.28 Cash 15,000 Jan.28 Purchases 2,240

Jan.30 Rent 2,000

Jan.30 Balance 11,680 76,360

83,900 89,300 700 83,900 89,300 300

Feb. 1 Balance 11,680 76,360

Explanation:

Sumanto, Kochi's two-column Cash Bank shows two columns for cash and bank on the debit and credit sides and also the discount allowed and discount received on the debit and credit sides respectively.

5 0

2 years ago

The Riegle-Neal Act of 1994

stepladder [879]

Answer: overturned prohibitions on interstate banking and branching(D)

Explanation:

The Riegle-Neal Act of 1994 was signed into law by former United States of America president; President Bill Clinton in September 1994. The Riegle-Neal Act of 1994 removed many obstacles that were encountered by banks that want to have branches in other states.

The Riegle-Neal Act of 1994 also provided uniform set of rules for the banks in each state. It allowed interstate banking nationwide for the first time, by allowing well-managed, and well-capitalized banks to get banks in other states.

7 0

2 years ago

The actual manufacturing overhead incurred at Gutekunst Corporation during March was $53,000, while the manufacturing overhead a

nevsk [136]

Answer:

B. Manufacturing overhead was overapplied by $20,000; Cost of goods sold after closing the manufacturing overhead account is $431,000.

Explanation:

Manufacturing overhead refers to the factors or conditions that keeps a facotry running. These include electricity, deprecaition on factory, etc.

In the case of the queetion above, the manufacturing overhead has been over applied by $20,000 (i.e: $73,000 - $53,000). This over application of the manufacturing overhead has also affected the cost of goods sold after closing out the manufacturing overhead account

Since the overapplied amount is $20,000, we deduct the overapplied amount from the cost of sales ($471,000) to get the actual costs of goods sold after closing out the manufacturing overhead account.

We then have ($451,000 - $20,000) = $431,000.

Therefore, the cost of goods sold after closing the manufacturing overhead account is $431,000.

Cheers.

4 0

2 years ago