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2 years ago

You’ve collected the following information from your favorite financial website.

Business

1 answer:

Nataliya [291]2 years ago

3 0

Answer:

-9.92%

Explanation:

P₀ = Div₁ / (Re - g)

Div₁ = next year's expected dividend = $1.12 x (1 - 11.5%) = $0.9912
Re = cost of equity = ?
P₀ = current stock price = $62.91
g = dividend's growth rate = -11.5%

Re = (Div₁ / P₀) + g

Re = ($0.9912 / $62.91) - 11.5%

Re = 1.58% - 11.5% = -9.92%

Since the cost of equity or required rate of return cannot be negative, I suppose that investors are not worried about Abbott distributing dividends, instead, they prefer that the company reinvests earnings in new projects.

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PNW, LLC purchased equipment, a building, and land for one price of $6,050,500. The estimated fair values of the equipment, buil

umka2103 [35]

Answer:

$4235350.

Explanation:

Given: Estimated fair value of the equipment= $1000000.

Estimated fair value of the building= $7000000.

Estimated fair value of the land= $2000000.

One Purchase price of equipment, building and land= $6050500.

First finding the allocated percentage share of building.

Total amount shared by building, land and equipments= $\$ 1000000+\$7000000+\$ 2000000$

∴ Total amount shared by building, land and equipments= $\$ 10000000$

Allocated percentage share of building= $\frac{Estimated\ fair\ price\ of\ building}{Total\ amount\ shared} \times 100$

⇒ Allocated percentage share of building= $\frac{7000000}{10000000}\times 100$

∴ Allocated percentage share of building= $70\%$

Now, calculating amount would the company record the building.

Amount recorded for the building= $70\% \times \$ 6050500$

⇒ Amount recorded for the building= $\frac{70}{100} \times 6050500$

∴ Amount recorded for the building= $\$ 4235350$ .

Hence, amount that company would record for building is $4235350.

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It is estimated that the annual maintenance cost of a statue erected in front of a public building in a state capital would be $

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1 year ago

Thunder Roads Enterprises makes the following information available:

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Answer:

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Explanation:

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Whays the difference in price beyween buying 10 jackets and buying 11 jackets

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Read 2 more answers

Ethan's job as an accounting assistant was recently modified to include reconciling bank accounts and making deposits, two tasks

Sveta_85 [38]

Answer:

c) enrichment.

Explanation:

Ethan's job as an accounting assistant was recently modified to include reconciling bank accounts and making deposits, two tasks previously done by the accounting manager. This increase in responsibility would best be described as job <u>enrichment</u>.

Job enrichment is a common technique used by organization to motivate their employee by giving them additional responsibility which required more skill to do and it was reserved for higher ranking officials. Additional responsibilty have also increased the pay of employee, which add satisfaction with more challenge in his or her job.

Job enrichment are followed to achieve following goals:

Reducing repetitive work.
Employee should feel recognition and achievement.
Increasing opportunity for employee´s growth.
Hard work pays you and does not go rewardless.

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2 years ago