The correct answer is royalty. Royalty is considered to be a
payment by which is made by one by which the franchisee or the licensee owns
the asset in particular and that it is for the right of having to do an
outgoing use of the asset.
As it is known that future cash flows are
risky in nature so it is not possible to discount them at risk free rate. So
investor must discount the future cash flows based on the equity cost of
capital. It is the expected return of the other investments available in the market
with same kind of risk to the firm’s share.
Price of the stock can be found by using
the cost of equity equation which is as follows:
Po = Div_1 + P_1 / 1 + r_E
$15 = 0.8 + X / 1.12
X = $16
So the expected selling price of the
stock is $16.00
Answer: B) employee’s compensation.
The income approach to measure gross domestic product or GDP starts with the income earned (wages plus plus rents plus interest plus profits) from the production of goods and services.
Based on the income-based method of calculating GDP, income or wages earned by Joe and Michelle for being partners can be categorized under B) employee’s compensation.
Occupational Safety and Health Administration (OSHA) was created to ensure healthy and safe work environments for all workers. Being that the factory did not offer adequate ventilation, the workers could be at risk for harm, and be in violation of OSHA standards.
<span>The following properties can be classified as those associated with metal elements: having a high density, malleable, and having low melting points.
The following properties can be classified as those associated with non-metal elements: dull and nonreactive to acids.</span>
