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2 years ago

You’ve collected the following information from your favorite financial website.

Business

1 answer:

Nataliya [291]2 years ago

3 0

Answer:

-9.92%

Explanation:

P₀ = Div₁ / (Re - g)

Div₁ = next year's expected dividend = $1.12 x (1 - 11.5%) = $0.9912
Re = cost of equity = ?
P₀ = current stock price = $62.91
g = dividend's growth rate = -11.5%

Re = (Div₁ / P₀) + g

Re = ($0.9912 / $62.91) - 11.5%

Re = 1.58% - 11.5% = -9.92%

Since the cost of equity or required rate of return cannot be negative, I suppose that investors are not worried about Abbott distributing dividends, instead, they prefer that the company reinvests earnings in new projects.

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On December 31, Year 4, Mith Co. was a defendant in a pending lawsuit. The suit arose from the alleged defect of a product that

kifflom [539]

Answer:

C) An accrued liability of $50,000 and would disclose a contingent liability for an additional $10,000.

Explanation:

Since it is probable that Mith will lose the case, hen it must report an accrued liability of $50,000 which represent the most likely outcome of the lawsuit. But since it is also possible that they have to pay $10,000 more, they should report that amount as contingent liability.

Contingent liabilities are those events that can result in a loss and have more than 50% chance of occurring. Since it is not certain that it will happen, they are considered contingent (or just in case).

Since the first $50,000 are probable, they must be recorded as accrued liabilities, since the last $10,000 are possible, they must be recorded as contingent liabilities.

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2 years ago

At December 31, 2020, Redmond Company has outstanding three long-term debt issues. The first is a $2,000,000 note payable which

Kaylis [27]

Answer:

Year Amount ($) (Disclosure amount for long term debt)

2021 0

2022 2,500,000

2023 4,500,000

2024 8,500,000

2025 2,500,000

Explanation:

The question is to show the required note disclosure of Redmon Company's Long term Debt at December 31, 2020

In order to do this, the note disclosure will take into cognisance the

Year Amount ($) (Disclosure amount for long term debt)

2021 0

2022 2,500,000

2023 4,500,000

2024 8,500,000

2025 2,500,000

Workings:

Disclosure for 2023 = Annual sinking fund payment + the notes payable maturity = (2,000,000 + 2,500,000)

Disclosure for 2024 = Annual sinking fund payment + the notes payable maturity = (6,000,000 + 2,500,000)

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2 years ago

The ________ database would most likely be found in the science and telecommunication industries.

kolezko [41]

Both of those industries are most likely to use object oriented database type.
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By offering a form of query language, we could set so the objects could easily be found through declarative programming<span> approach</span>

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2 years ago

Two currently owned machines are being considered for the production of a part. The capital investment associated with the machi

andrew11 [14]

Answer:

Machine A's output in a day = 100 × 7 = 700

Rejected output of machine A =0.03 × 700 = 21

Thus defect free output of machine A = 700 – 21 = 679

Revenue from Using Machine A = 679 × 12 = 8148

Cost of Using Machine A = 6 × (Defect free output) + 15 × 7 + 5 × 7 = 6 × 679 + 105 + 35 = 4214

Thus, profit from using machine A = 8148 – 4214 = 3934

Machine B's output in a day =130 × 6 = 780

Rejected output of machine B = 0.1 × 780 = 78

Thus, defect free output of machine B = 780 – 78 = 702

Revenue from Using Machine B = 702 × 12 = 8424

Cost of Using Machine B = 6 × 702 + 15 × 6 + 5 × 6 = + 105 + 35 = 4212 + 120 = 4332

Thus profit from using machine B = 8424 – 4332 = 4029

Since the profit from using machine B is higher, Machine B should be selected.

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2 years ago

On May 1, 2021, Cedar Corp. paid $432,000 for rent on warehouse space one year in advance. On November 1, 2021, Cedar Corp. ente

lorasvet [3.4K]

Answer: $324,000

Explanation:

Cedar Corp. paid $432,000 for a year in advance. According to the Accrual principle in Accounting, expenses are to be recorded only when incurred.

The rent will therefore have to be apportioned to the months that it has paid for in the current period.

Rent for year = $432,000

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April - December = 9 months

Rent for the year = 9 * 36,000

= $324,000

Note; <em>Question is about Rent expense which is how much Cedar Corp has paid not about how much they have received. </em>

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