Answer:
latest laptop, most expensive shoes, and a extra pair of jeans. these are all things that people want not need. water on the other hand is a basic need.
Explanation:
Answer:
The answer to this question is, Latest Laptop, Most Expensive Shoes, & an extra pair of Jeans.
Explanation:
To live in this world, we will need most necessarily the following:
All the other things are not necessary at all. Only the senses are making us to wish for it.
Answer:
4.76% and 0.5
Explanation:
The computation is shown below:
Average borrowing rate is
= Cost of debt capital ÷ (1 - tax rate)
= 3% ÷ (1 - 0.37)
= 4.76%
And, the market beta is
Cost of equity = Risk free rate of return + Beta × (Market risk premium - risk free rate of return)
5% = 2.5% + Beta × 5%
So, the beta is 0.5
The (Market risk premium - risk free rate of return) is also known as market risk premium
The average pre-tax borrowing rate for Abbott Laboratories is 4.8%. The market beta cannot be calculated without additional information.
The computations for the average pre-tax borrowing rate and market beta for Abbott Laboratories (NYSE: ABT) require different approaches. The estimate provided in the question, 3.0%, is an after-tax cost of debt capital so to find the pre-tax cost of debt, we need to adjust this rate for the tax impact. You would use the formula: pre-tax cost of debt = after-tax cost of debt / (1 - tax rate). Plugging the given values in, we get:
3.0% / (1 - 0.37) = 4.76%,
rounded to 4.8%.
As for the market beta, additional information would be needed that was not provided in the question, such as the covariance of ABT's stock return with the return on the overall market, and the variance of the market's return. Because of this, the market beta cannot be calculated with the provided information. This underlines the importance of clear and detailed information in solving financial analysis problems.
#SPJ3
2. How much total bond interest expense will be recognized over the life of these bonds?
3. Prepare an effective interest amortization table for these bonds.
Answer:
1. What is the amount of the discount on these bonds at issuance?
$18,885
2. How much total bond interest expense will be recognized over the life of these bonds?
total interest expense = ($248,000 x 7% x 3 years) + $18,885 = $70,965
3. Prepare an effective interest amortization table for these bonds.
see attached PDF
Explanation:
the journal entry to record the issuance
January 1, 2019, bonds issued at a discount
Dr Cash 229,115
Dr Discount on bonds payable 18,885
Cr Bonds payable 248,000
The discount on the bonds at issuance is $18,885. The total bond interest paid over the life of the bonds is $52,080. An effective interest amortization table can be created to track the interest expense, reduction of discount, and carrying value at each period.
In the scenario you described, the bonds have a par value of $248,000 and they were sold for $229,115. The discount on the bonds at issuance is the difference between the par value and the amount they were sold for: $248,000 - $229,115 = $18,885.
The annual contract rate is 7%. Therefore, the annual interest is $248,000 * 7% = $17,360. Since interest is paid semiannually, each interest payment will be $17,360 / 2 = $8,680. Since the bonds mature in three years, there will be 3 * 2 = 6 interest payments, so total bond interest paid over the life of the bonds is $8,680 * 6 = $52,080.
An effective interest amortization table can be created by calculating the interest expense at each period (at the market rate of 10%), the amount of the payment that reduces the discount, and the carrying value of the bonds at each period.
#SPJ11
a. classical theory.
b. Keynesian theory.
c. new classical theory.
d. monetarist theory.
Answer:
c. new classical theory.
Explanation:
The new classical theory belives that grow, countries must open their economies, entrepreneurial development (risk taking), privatize state owned enterprises, and reform labor markets, such as by decreasing the authority of trade unions.
Moreover it also focused that there is no effect on the employment and the result or outcome as individuals recognized the policies in the correct way so that it helps to anticipate them
Hence, the third option is correct
Answer:
c. Debit to Bank Credit Card Sales, debit to Credit Card Expense, and a credit to Sales
Explanation:
The journal entry is shown below:
Bank credit card sales A/c Dr XXXXX
Credit card expense A/c Dr XXXXX
To Sales A/c XXXXX
(Being the sales is recorded via bank credit cards)
As the credit card has some expense so we debited the credit card expense along with the bank credit card sales and credited the sales as it is revenue which is to be credited
Trading securities 11,500
Accumulated depreciation on equipment and furniture 29,000
Cash 33,000
Inventory 58,500
Equipment 45,000
Patent 9,000
Prepaid expenses 3,700
Land held for future business site 36,500
In Sheridan’s December 31, 2017 balance sheet, the current assets total is:
a. $212500.
b. $234300.
c. $146500.
d. $218300.
Answer:
$143,700
Explanation:
Current assets in Sheridan Company's trial balance are;
Accounts receivable (net) = $37,000
Trading securities = $11,500
Cash = $33,000
Inventory = $58,500
Prepaid expenses = $3,700
Total current assets = $37,000 + $11,500 + $33,000 + $58,500 + $3,700
= $143,700
The right answer is not given as an option.