On March 1, a firm paid $1,800,000 cash to purchase land on which to construct a new facility. Construction began the same day. Total expenditures incurred for construction were as follows: The new facility was finished and ready for use on July 1. To finance the building construction, the firm borrowed $2,400,000 on March 1 on a 9%, 3-year note payable. Other than the construction note, the firm’s only other outstanding debt during the year was a $1 million, 12%, 6-year note payable dated January 1. If the weighted-average accumulated expenditures for the construction project were $2,900,000, then what amount of interest cost should the firm capitalize for the year?

Answers

Answer 1
Answer:

Answer:

In total the firm will capitalize interest thorught building account for 560,000 dollars

Explanation:

From the weighted average accumulated of 2,900,000

we should first work with the interest incurred in specific borrowing:

2,400,000 x 9% = 216,000

then we subtract:

2,900,000 - 2,400,000 = 500,000

and forthis amount we apply the rate for the other debt outstanding

500,000 x 12% = 60,000

In total the firm will capitalize interest thorught building account for 560,000 dollars


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A reason advertising can be economically wasteful as Advertising manipulates people's tastes and can reduce competition. Thus the correct option is B.

What is Advertising?

Advertising is referred to as a tool for the promotion of goods and services by creating awareness about them in public which helps to persuade and influence them to purchase the product.

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According to the Insurance Institute for Highway Safety, neck strains and sprains are the most serious injury reported in 30-40% of auto insurance claims. These claims are presented made when people call in with these issues due to auto accidents. These claims are filed through the insurance and are given to the Insurance Institute for Highway Safety which allows them to generate what the insurance companies should charge people for policies due to certain rising issues.

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What is the south African government providing and to whom?

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Answers

Answer:

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Explanation:

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Which type of portfolio might a young investor who is not afraid of risk choose?a. A portfolio of with a high percentage of stocks b. A portfolio with a high percentage of conservative mutual funds c. A portfolio that is mostly cash d. A portfolio with a high percentage of treasury bonds.

Answers

The answer to this question is a. A portfolio of with a high percentage of stocks.From the options above, stock is considered the most volatile type of investments and considered high risk& high return. The price of stock could change within days and this could either give a really large profit for the shareholders or make shareholders lose their capital badly when the market price of the stock fall down.

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A young investor who is not afraid of risk might choose a portfolio with a high percentage of stocks. This is because stocks have historically provided higher returns compared to other investment options over the long term. Young investors typically have a longer investment horizon, allowing them to ride out short-term market fluctuations and take advantage of the potential growth of stocks. They can afford to take on more risk because they have time to recover from any potential losses. Additionally, a high allocation to stocks can provide the opportunity for capital appreciation and wealth accumulation over time. While stocks can be volatile in the short term, a young investor can benefit from the potential compounding effect and the ability to diversify their holdings across different sectors or countries to manage risk.

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Shares of ABBO stock are currently selling for $14.43 a share. The last annual dividend paid was $1.61 a share, and dividends increase at a constant rate. If the market rate of return is 14 percent, what is the dividend growth rate

Answers

Answer:

The dividend growth rate is  3%

Explanation:

Given that:

  • Dividend : $1.61 (D)
  • Price:  $14.43 (P)
  • Market rate of return: 14% = 0.14 (r)

As we know that, the formula to find the price of a stock is:

  • P = D / (r - g)

In this question, we have:

14.43 = 1.61 / (0.14 -g)

<=> 0.14 - g = 1.61 / 14.43

<=> g = 0.14 - 0.11

<=> g = 0.03 = 3%

So the dividend growth rate is  3%

Answer:

Growth rate  = 2.56%

Explanation:

Using the divided growth model

P = D× (1+g)/(ke-g)

P- price of stock, g- annual growth rate, Do- last dividend paid, Ke- market return

Substituting, we have

14.43 = 1.61(1+g)/(0.14-g)

cross multiplying

=14.43× (0.14-g) = 1.61 + 1.61g

2.0202- 14.43g = 1.61 + 1.61g

2.0202 -1.61 = 1.61g + 14.43g

0.4102 =16.04g

g = 0.025573566 × 100

Growth rate  = 2.56%