Answer:
The secondary market is the market in which securities are traded. This market no longer accumulates new financial resources for the issuer, but only reallocates resources among subsequent investors.
As a resale mechanism, it allows investors to freely buy and sell securities. In the absence of a secondary market or its weak organization, the subsequent resale of securities would be impossible or difficult, which would discourage investors from buying all or part of the securities. As a result, society would be left on the losing side, since many, especially the newest, undertakings would not receive the necessary financial support.
Answer:
The most you should pay for this stock is 126.89
Explanation:
The dividend in years 1 – 3 will grow at 12% and then at 5% forever.
We had to get the PV for the dividends in years 1-3 (year 3 also includes the estimated future value of the stock).
We used our calculators to find the PV of each year at the 8% discount rate. Finally we will add them all together to get the final answer.
We find the future dividends using g =12%
Dividend in year 0 --->
Dividend in year 1 ---> 3.36
Dividend in year 2 ---> 3.76
Dividend in year 3 ---> 4.21
Dividend in year 4 ---> 4.43
Now we will calculate the present value of the future dividends using r = 8%
Stock Value assuming constant growth rate = 147.52 --(a)
PV in year 1 ---> 3.11
PV in year 2 ---> 3.23
PV in year 3 ---> 120.45 --(discounting (a))
= 120.45 + 3.23 + 3.11
= 126.89
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
The company currently sells 700 containers a month at a sales price of $24 per unit. The addition of a new disinfectant will result in a sales price of $26 per unit for the improved product. It would cost a total of $4,000 per month to alter.
First, we need to calculate the current sales level:
Sales= 700*24= $16,800
Now, we can calculate the new income:
Sales= 700*26 - 4,000= $14,200
It is more convenient to not apply the disinfectant.
Answer:
c. increases
Explanation:
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
The production possibility frontier is graph that shows the two combinations of goods that an economy can produce given its resocurces.
As the production of donuts increases, the amount of beers that would be forgone in order to increase production of donuts rises.
I hope my answer helps you
Answer:
The question is not complete,find attached complete question in word document.
Find all the journal entries in the attached spreadsheet
Explanation:
Please note the following points:
The goodwill is the excess of purchase consideration of $ 476,500.00 over the net assets of Softball acquired,that is $ 318,000.00
The net assets is total assets acquired of $374,000 minus the liabilities taken over of $56000
Equity method income is the difference between Softball's net income reported and the dividends paid
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