IBM expects to pay a dividend of $5 next year and expects these dividends to grow at 7% a year. The price of IBM is $90 per share. What is IBM's cost of equity capital?
A) 3.77%
B) 5.02%
C) 7%
D) 12.56%
Answer: D
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Which of the following is a true statement?
a. Transactions are events that may be either external or internal to an enterprise. b. Events that are internal to the firm do not require entries in the firm’s accounts. c. Transactions are economic or financial events that may or may not be recorded in the firm’s accounts. d. “Simple events” do not have any significant economic variables that lead to essentially different recording.
The Tulip Company uses the percent of receivables method of accounting for uncollectible accounts receivable, and a perpetual inventory system. As of January 1, its net accounts receivable totaled $485,000 (Accounts Receivable $500,000 less a $15,000 Allowance for Doubtful Accounts). During the current year, the following transactions occurred. 1)Merchandise costing $2,400,000 was sold on account for $4,000,000. 2)The company collected $3,880,000 from customers on account.3)$20,000 of accounts receivable were deemed uncollectible and written off.4)$3,000 of accounts receivable previously written off as uncollectible were recovered.5)At year-end, Lily Company estimates that 3% of its accounts receivable are uncollectible.Prepare journal entries to record these transactions.
What will be an ideal response?
Laws on pollution, consumer protection, and operator safety are critical as legal forces.
Answer the following statement true (T) or false (F)
Which method of entering a foreign market has a domestic firm actively managing a foreign company or overseas facility?
A. direct ownership B. licensing C. exporting D. joint venture E. contract manufacturing