Answer:
$34.63.
Explanation:
The Gordon Dividend Discount Model will be used to calculate the current share price. This model helps us to determine how much should we pay for a stock and the analysis is based on dividends, growth rate, and our required rate of return. The model is as follows:
![Po = D1 / (1 + r )^1 + D2 / (1 + r )^2 + D3 / (1 + r )^3 + D4 / (1 + r )^4 + D5 / (1 + r )^5 + D6 / (1 + r )^6 + [(D7 / r - g) / (1 + r)^6]](https://tex.z-dn.net/?f=Po%20%3D%20D1%20%2F%20%281%20%2B%20r%20%29%5E1%20%2B%20D2%20%2F%20%281%20%2B%20r%20%29%5E2%20%2B%20D3%20%2F%20%281%20%2B%20r%20%29%5E3%20%2B%20D4%20%2F%20%281%20%2B%20r%20%29%5E4%20%2B%20D5%20%2F%20%281%20%2B%20r%20%29%5E5%20%2B%20D6%20%2F%20%281%20%2B%20r%20%29%5E6%20%2B%20%5B%28D7%20%2F%20r%20-%20g%29%20%2F%20%281%20%2B%20r%29%5E6%5D)
where
Po = Current market Price
D1 = Dividend Paid * (1 + g)
D2 = D1 (1 + g) ; D3 = D2 (1 + g) ; D4 = D3 (1 + g) ; D5 = D4 (1 + g)
D6 = D5 (1 + g) ; D7 = D6 (1 + g)
This implies that:
![Po = 2.7507 / (1.15)^1 + 2.8552 / (1.15)^2 + 2.9637 / (1.15)^3 + 3.0763 / (1.13)^4 + 3.1932 / (1.13)^5 + 3.3146 / (1.13)^6 + [(3.4405/.11 - .038) / (1.13)^6]](https://tex.z-dn.net/?f=Po%20%3D%202.7507%20%2F%20%281.15%29%5E1%20%2B%202.8552%20%2F%20%281.15%29%5E2%20%2B%202.9637%20%2F%20%281.15%29%5E3%20%2B%203.0763%20%2F%20%281.13%29%5E4%20%2B%203.1932%20%2F%20%281.13%29%5E5%20%2B%203.3146%20%2F%20%281.13%29%5E6%20%2B%20%5B%283.4405%2F.11%20-%20.038%29%20%2F%20%281.13%29%5E6%5D)
⇒ Current Market Price = $34.63.
Note: Figures are rounded up-to 4 decimal points. A difference of up-to $2 would not affect your scores as far as the methodology is correct.
Answer:
The amount which is to be debited to the account of Patents is $35,000
Explanation:
Patent is the right which is given to an investor to stop other people or an individual using or making their invention.
So, company incurred $150,000 for the research and development costs in order to develop the patent and $35,000 is paid for legal fees.
Therefore, the amount of $35,000, is the aggregate amount of patent as it is paid in obtaining the patent.
Answer:
e. DEBIT to Accounts Receivable $44,000
Explanation:
The accrual journal entry to record the sale involves a debit to the accounts receivable account and a credit to sales revenue;
Income 44000
Costing 23000
e. DEBIT to Accounts Receivable $44,000
Answer:
Facilitative decision making decison style is the correct answer to the given question.
Explanation:
The facilitative style of action-making represents a collaborative effort between the members and the stakeholders, each giving feedback for mutual the decision taking.
- It is critical that stakeholders provide access to data necessary for decision taking with the help of Facilitative decision style the zach take the decision and solved the given problem .
- The main objective of Facilitative decision-making approach results in better strategies also the better team purchase-in and more efficient and effective team-building are enhanced .
Answer:
Break Even Point
In Units = 2,000 units
In value = $80,000
Explanation:
Break even Point = 
When we use contribution per unit, we get the break even point in units sales.
When we use the contribution margin as a percentage of sales we get break even sales in value.
Contribution per unit = $20
Contribution margin in percentage = $20/$40 = 50%
Therefore, Break even Point in units = 
Break even units = 2,000
Break Even Point in value = 
Sales to be made in value at break even = $80,000
