Answer:
$9.74
D0 $0.75
b 1.70
rRF 4.5%
rM 10.5%
g 6.5%
D1 = D0(1 + g) =$0.7988
rS = rRF + b(rM - RRF) =14.7%
P0 = D1/(rS - g)=$9.7
Explanation:
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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Answer:
Option A net worth -215,906.03
Option B net worth -210, 159.75
It is a better deal to use the machine through lease than purchase it as the net worth is lower.
Explanation:
Purchase the machine:
-164,000 purchase cost
PV of the maintenance cost
C -9,000.00
time 10
rate 0.08
PV -$60,390.7326
PV of the salvage value
Maturity 14,000.00
time 10.00
rate 0.08000
PV 6,484.7088
<em>net worth: </em>
-162,000 - 60,390.73 + 6,484.70 = -215,906.03
PV of the lease: (annuity-due)
C 29,000.00
time 10
rate 0.08
PV $210,159.7494
Answer:
1. Repetitive and continuous
2. Call
3. How, what, and when
4. Material problem
Explanation:
The work of Stickley furniture is described as repetitive and continuous. This is because, the company will continue to be producing the same kind of furniture continuous, This will be so because, furniture have a limited number of make. For example, furniture are chairs, tables, cabinet, stool and shelf. These things will be continually produced by the company.
The company will be able to keep track of job status and location through call.
Meanwhile, when the company received an order. The questions they will ask are, what type of furniture they want? When they want it?, How they want it delivered, is it in batches? Where they want it delivered?
Answer:
C.Greater than 0.75
Explanation:
Given
Cu = $120
Co = $360
We know Probability P <= Cu/(Cu + Co)
P = 120/(120 + 360)
= 120/480
= 0.25
P is the probability of unit is will not sold and 1-p is the probability of unit that will sold
1 - p = 1 - 0.25
= 0.75
probability of the last unit being sold should be greater than 0.75
