Answer: A. The company's net income will increase.
Explanation:
Based on the above scenario, the net income of the company will increase. From the new issue, it should be noted that there will be redemption of debt and therefore, there'll be reduction in the debt which will lead to lower interest expense.
It should be noted that the net income, which is also referred to as the net earnings, is simply the sales minus the cost of goods sold, interest, taxes and the general expenses. Since there's a lower interest expense, there'll be a rise in net income.
Answer:
Checking for students' understanding of a concept by asking them to apply the concept to other contexts.
Explanation:
Concept formation is an inductive teaching technique that enhance discovery learning and helps to get clear understanding of a concept in pupils by using psychological processes such as observation, analysis, hypothesis, generation and testing a small set of the concepts.
Mr. Lui utilized the strategy of checking for students' understanding of a concept by asking them to apply the concept to other contexts in his homework assignment.
Answer:
269 million
Explanation:
The free cash flow to the firm is 275 million
The interest expense is $60 million
The tax rate is 35%
The net debt of the firm increases by $33 million
Therefore the free cash flow to the equity holders of the firm can be calculated as follows
= 275 million-60 million(1-35/100) + 33 million
= 275 million- 60( 1-0.35) + 33 million
= 275 million- 60(0.65) +33 million
= 275 million - 39 million + 33 million
= 236 million + 33 million
= 269 million
Answer with its Explanation:
Step 1:
First of all record a loan of $3 million loan:
Dr Bank $3,000,000
Cr Loan $3,000,000
Step 2:
Finance charge will be 3% on this loan amount:
Dr Finance Charge $3million *3% = $90,000
Cr Bank $90,000
Step 3:
The interest on the note is 7% which is $70,000. So the journal entry would be:
Dr Interest Expense $70,000
Cr Interest payable $70,0000
Answer:
True
Explanation:
Generally Acceptable Accounting Principles (GAAP) is only applicable in the United States of America whereas International Financial Reporting Standards (IFRS) has been adopted by most countries on the globe. This makes Report prepared on IFRS more comparable and make it easier to raise capital globally.
