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:
Adjusting Entry
December 31,
Dr. Service Revenue $3,000
Cr. Unearned Revenue $3,000
Explanation:
Using alternate treatment the cash received in advance is recorded as the revenue initially.
On September following entry was performed
Dr. Cash $15,000
Cr. Revenue $15,000
At the end of the year services of 4 months have been performed and the amount of one month's service is received in advance until this date. It needs to be adjusted according to the accrual concept.
Answer:
Managers for an organic grocery chain were deciding whether to open a new store in a neighborhood currently unserved by any competitors. One manager felt that the lack of competitive presence was an opportunity to capture the newest customers. Another manager viewed the lack of a competitor in the area as an indicator that the local community may not be interested in organic products. This difference in perspective illustrates the concept of Management.
Explanation:
The art of getting things done through others in an orderly and effective manner is referred to as management. It is the process of getting things done through others with the help of some basic activities like planning, organizing,directing, coordinating and controlling.
Managers were proposing different ideas on how to achieve a goal, which is to decide whether to open a new store in a neighborhood currently unserved by any competitors, thus, the difference in their perspective illustrates the concept of Management.
Answer:
14%
Explanation:
Answer Formula derived in class: Coupon Collateral Fraction Floater = 7% / . 5 = 14%
