Response:
The cash collection totals $122,000
and the amount receivable as of August 31 stands at $97,000
Clarification:
For August, the anticipated cash collection is $122,000, while the receivables amount on August 31 is $97,000.
A cash collection schedule is included in the attached MS Excel file with this response.
Response:
$18,000
Clarification:
As per the Internal Revenue Service, the rental property's lifespan is 27.50 years.
Below is the calculation for the highest depreciation amount allowed:
= (Cost of building - value assigned to land - salvage value) ÷ lifespan
= ($600,000 - $104,950 - $0) ÷ 27.50 years
= $495,050 ÷ 27.50 years
= $18,000
The new common stock cost is 16.3%. The price of a stock is determined as the present value of its anticipated future dividends discounted at the cost of equity. The cost of equity can be established through the capital asset pricing model (CAPM). According to CAPM, the cost of equity is defined as Ke = Rf + β(Rm-Rf), where Rf is 6%, Rm-Rf equals 5%, and β equals 2.00. This leads us to: E(r) = 6% + 2.00 × (5%) = 16%. The current market price is calculated as: Market price = 3.00 × (1.1)/(0.16-0.1) = $55. By factoring in the flotation costs while applying the dividend valuation model, the cost of the new common stock is given by: Cost of new common stock = D0 × (1 + g)/Po × (1-F) + g, where Po is 55, g is 10%, F is 5%, and D0 is 3. The calculation yields: 3 × (1.1)/55 × (1-0.05) + 0.1 = 16.3%.
Answer:
Customer loyalty strategy
Explanation:
Companies devise customer loyalty strategies to ensure existing clients stay with them and to prompt these clients to refer others to their offerings. Loyalty is often cultivated via exclusive discounts or extra services awarded to customers who recommend the brand. These techniques can also be applied to stimulate increased purchases; for example, clients might receive discounts or bonus products after acquiring a specific amount of items.
