Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
The answer is letter A.
Explanation:
The true statement is Annual data on the distribution of income will indicate that the degree of income inequality in the two cities is identical.
Answer:
Quarterly dividend = $1.00
Required rate of return per annum = 8% = 0.08
Quarterly rate of return = 0.08/4 = 0.02
Current market price = <u>Quarterly dividend</u>
Quarterly required rate of return
= $1.00
0.08
= $12.5
The amount to pay for 1,000 shares = $1.25 x 1,000 = $12,500
Explanation:
The current market price is calculated as quarterly dividend paid divided by quarterly required rate of return. Then, we will multiply the current market price by the number of shares in order to determine the total amount to pay for the shares.
Answer:
The current value of this stock should be $20.
Explanation:
The current value of this stock should be calculated by applying the formula to find present value of growth perpetuity. The formula is shown as below:
Stock price = D1 / ( Rate of required return - Growth rate of annual dividend)
in which: D1 = next year dividend = 2.20;
Rate of required return = 8%;
Growth rate of annual dividend = -3%.
So, Stock price = 2.2 / [8% - (-3%) ] = $20.
So, the answer is: the current value of this stock should be $20.
Answer: <em>Total Period Cost = $20,500</em>
Explanation:
Given :
Salary = $4000
Factory supply = $1000
Indirect labor = $6000
Direct material = $16000
Advertising expense = $2500
Office expense = $14000
Direct labor = $20000
Period costs are the costs incurring that do not tend to be a section of manufacturing process. Therefore, we compute the Period Cost using the following formula:
<em>
Period costs = Salary + Advertising expense + Office expense
</em>
<em>
= $4,000 + $2,500 + $14,000
</em>
<em>
= $20,500</em>
