The interest on share capital and patronage refund was decided by the BODs to be 50-50. How much will be allocated for the Interest on Share Capital? Your Cooperative-Income StatementYour CooperativeStatement of Financial OperationFor the Period Ending December 31, 2019Interest Revenues1,500,000.00Service Revenues800,000.00Sales1,200,000.00Total Revenues3,500,000.00Less: Cost of Sales800,000.00Gross Profit2,700,000.00Less: Operating ExpensesNet Surplus1,200,000.001,500,000.00

As per Philippine "Cooperative code" the amount allocated for patronage refund shall not be less…

Answered: The interest on share capital and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A-Rod Manufacturing Company is trying to calculate its cost of capital for use in making a capital budgeting decision. Mr. Jeter, the vice-president of finance, has given you the following information and has asked you to compute the weighted average cost of capital. The company currently has outstanding a bond with a 10.2 percent coupon rate and another bond with an 7.8 percent rate. The firm has been informed by its investment banker that bonds of equal risk and credit rating are now selling to yield 11.1 percent. The common stock has a price of $56 and an expected dividend (D₁) of $1.76 per share. The historical growth pattern (g) for dividends is as follows: $ 1.31 T 1.45 1.60 1.76 The preferred stock is selling at $76 per share and pays a dividend of $7.20 per share. The corporate tax rate is 30 percent. The flotation cost is 2.0 percent of the selling price for preferred stock. The optimum capital structure for the firm is 25 percent debt, 20 percent preferred stock, and 55…
What is the profitability index of an investment with initial investment of OMR 6600 and net present value of OMR 2100, where the discount rate was 8 percent?
Insight Ltd. has the following capital Structure & after-tax Cost for different sources of funds used: Source of Funds Amount After-tax Cost Debt 15,00,000 5 Pref. Shares 12,00,000 10 Eq. Shares Retained Earnings 18,00,000 12 15,00,000 11 You are required to Calculate Weighted Average COC.
Using the findings, provide a brief summary about the financial status of each of the companies and provide a recommendation for the investment choice.
Explain to boards members what is meant by capital budgeting and elaborate on five reasons why capital budgeting is of great importance to Bella company Ltd?
Solve this balance sheet picture by horizontal analysis and write why it's decrease and increase in percentage :
Which of the following statements are correct? Preferred equities are separate form common equities Opportunity cost should not be included in the capital budgeting decision Retained earnings are important in calculating the WACC Weights for equity in the WACC calculation are always on book values Cash from net working capital for each year is defined as NWCn- NWCn-1
Evaluate four major ways through which a company can raise capital for expansion purposes With illustrations, show how you would interpret Financial statements to the different stake holders using the data provided. Identify what you would consider important to appear in your end of year Final accounts for Twekambe industries.
Which decisions involve commitment of large sums of money and is not limited for one year Select one: a. Capital Structure b. Capital Budgeting c. None of the option d. Working Capital e. Cost of Capital

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