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:
<u>4 bushels, 2 bushels, Bellisima, Euphoria</u>
Explanation:
Remember, opportunity cost as used in this context<em> refers to the loss of other profit alternatives when one alternative is chosen</em>. In this scenario if we consider the two neighboring countires called Acadia and Euphoria. Both have 4 million labor hours per month that they can use to produce corn, jeans, or a combination of both.
Euphoria produces <em>4 bushels of corn per hour and 16 pairs of jeans</em><em>. </em>Acadia produces<em> 5 bushels of corn per hour and 10 pairs of jeans.</em> Euphoria produces <em>12 million bushels of corn and 16 million pairs of jeans</em> and Acadia produces <em>5 million bushels of corn and 30 million pairs of jeans.</em>
<em></em>
<u>Euphoria's opportunity cost of producing one bushel of corn is</u> 
= 4 pairs of jeans and
<u>Acadia's cost of producing one bushel of corn is </u>
= 2 pairs of jeans.
Finanlly, It is obvious that Acadia has the comparative advantage of producing corn, and Euphoria has the comparative advantage of producing jeans.
In the long run, if inputs are increased by 10 percent and output increases by 20 percent, then diseconomies of scale are said to exist. It is because diseconomies of scale is likely to happen in the long run for a business with increasing inputs without decreasing the cost of production. It can happen when the increase in production is dependent on one part that needs to be completed but there is a delay on producing the parts. Another reason is that the cost of shipping may increase base on how far will be the distance and the weight of the product.
Answer: The journal entry for Nelson company are as follows uses a perpetual inventory system:
Info General Journal Debit Credit
a Store Supplies expense $1,750
To Store Supplies $1,750
b Insurance Expense $1,400
To Prepaid Insurance $1,400
c Depreciation expense $1,525
To Accumulated Depreciation - Store equipment $1,525
d Cost of goods sold $10,900
To Merchandize Inventory $10,900
A wage is a monetary compensation paid to a worker or an employee for the work done or service provide. In a firm or a factory there are two types of labor namely direct labor and indirect labor. Direct labor are the workers on the production line whose efforts directly produce what the company manufactures while indirect labor are all the other workers such as the watchman or security guard. In this case, the wages of a timekeeper would be classified as indirect labor.
