Answer:
11.13%
Explanation:
Calculation to determine the required rate of return on the stock
Using this formula
Required rate of return=Last EPS*Payout*(1+RoE*(1-payout rate))/Current Price+RoE*(1-payout rate)
Let plug in the formula
Required rate of return=29/2.6*30%*(1+11%*(1-30%))/105+11%*(1-30%)
Required rate of return=11.13%
Therefore the required rate of return on the stock will be 11.13%
Answer:
$40,732
Explanation:
The computation of the amount of stockholders' equity is shown below:-
Amount of stockholders' equity = Cash + Accounts Receivable + Supplies Land - Accounts Payable
= $10,970 + $8,795 + $1,803 + $24,968 - $5,804
= $46,536 - $5,804
= $40,732
Therefore we have applied the above formula to reach out the amount of stockholders' equity.
Answer:
cash 1,469 debit
common stock 1 credit
additional paid-in 1,468 credit
--to record issuance of shares in exchange of cash--
Explanation:
We are given the fact that total par value of the shares is $1
thus, the remained will be additional paid-in excess of Common stock.
We debit the cash received as it is an asset
Then, we credit both, common stock and additional paid-in excess of Common Stock as they are equity accounts.
Classification of products by degree of CONSUMPTION divides them into three categories. They are non-durable goods, durable goods, and services.
Non-durable goods are also known as soft goods or consumables. These are goods that can be consumed and will not last for a long period of time before being replaced by goods of the same kind. It lasts for a maximum of three (3) years. Examples of non-durable goods are food and clothing.
Durable goods are goods that last for at least three years. These are goods that takes a long time before being replaced. Examples of these durable goods are appliances, vehicles, furniture, jewelry, sporting goods and consumer electronics.
Services are intangible economic goods. Examples of these services are accounting, banking, cleaning, consultancy, education, expertise, insurance, medical treatment, transportation, and any other services that man can offer.
