Answer:
The correct answer is C. $46.50.
Explanation:
The current value of one share of stock is the present value of all expected future cash flows. The present value (PV) of cash flows in each year is calculated as follows.
PV = Future value / (1 + Rate of return)^Number of years
The future value is the dividend received on the share in a particular year while the rate of return is 11.4% (i.e. 0.114).
Applying the above formula,
Current value of share = $1.221 + $0.927 + $0.977 + $0.260 + $43.114
= $46.50
Hence, the correct option is C. $46.50.
Answer:
Estimated indirect costs allocation rate= $14 per direct labor hour
Explanation:
Giving the following information:
Estimated direct labor hours= 23,000
Estimated indirect costs= $322,000.
To calculate the allocation rate, we need to use the following formula:
Estimated indirect costs allocation rate= total estimated indirect costs for the period/ total amount of allocation base
Estimated indirect costs allocation rate= 322,000/23,000
Estimated indirect costs allocation rate= $14 per direct labor hour
Answer:
1. No journal entry required
2. No journal entry required
3 Dr Loss $470,000
Cr Contingent liability $470,000
Explanation:
Preparation of the journal entry to Record any amounts as a result of each of these contingencies
1. Based on the information given we were told that The likelihood of the payment is reasonably possible which means that contingent liability amount was not recognized and therefore NO JOURNAL ENTRY IS REQUIRED
No journal entry required
2. Based on the information given we were told that Environmental Printing was expecting to win the case and be awarded the cash amount involved which means NO JOURNAL ENTRY IS REQUIRED reason been the CONTINGENT GAIN will not be recognized until the amount is received.
No journal entry required
3. Contingent liability was recorded because the payment is reasonably possible and Estimated.
Dr Loss $470,000
Cr Contingent liability $470,000
Answer: Nether Australia or Europe
Explanation:
Purchasing power parity is a notion that states that prices of the same or similar goods should have the same price across the world after adjusting for exchange rate differences.
If the price of a tall latte in the U.S. is $4,00, it should be the same price in Europe and Australia after exchange rate adjustments.
$4.00 in Euro is: $4.00 in Australian dollars is:
= 4 * 0.8 = 4 * 1.4
= €3.20 = $5.60
Purchasing power parity does not hold in wither countries because the prices of the lattes are not equal to the $4.00 in the U.S. after adjustments for exchange rates.
Answer:
capitalize the new cost as an asset to be amortized over future periods expected to benefit
Explanation:
A capitalized cost is a cost which is added to the cost basis of a fixed asset on a company's balance sheet. This Capitalized costs are sustained from the purchase or construction of fixed assets. Example of such costs are costs of materials, sales taxes, labor, transportation, and interest incurred to finance the construction of the asset.
This is usually done for items that would be used over a long period of time, therefore the item is capitalized and amortized or depreciated over its future periods.
