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1 year ago

What is a limited liability company (LLC)?

Business

1 answer:

alukav5142 [94]1 year ago

5 0

Answer:

<h3>A limited liability company is the US-specific form of a private limited company. It is a business structure that can combine the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. </h3>

hope it help :)

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The amount of money you can charge yo a credit card is called

Pani-rosa [81]

The answer is credit limit

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3 years ago

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The Sisyphean Company's common stock is currently trading for $25.00 per share. The stock is expected to pay a $2.50 dividend at

nalin [4]

Answer:

Explanation:

The Gordon constant growth dividend model =

Value = dividend / cost of capital - growth rate

Subsisting with the values given in the question gives :

25 = 2.5/0.14 - g

To solve for g,

1. multiply both sides by 0.14 - g

25(0.14 -g) = 2.5

2. divide both sides by 25

0.14 - g = 0.10

g = 0.04 = 4%

6 0

3 years ago

Sonny's BBQ Company recently issued $85 par value preferred stock that pays an annual dividend of $9. Analysts estimate that the

Bond [772]

Answer:

Intrinsic value=$73.77

Explanation:

The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset.

According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.

Price = D/Kp

D- Dividend payable

Kp- cost of preferred stock

So will need to work out the cost of equity using CAPM

The capital asset pricing model (CAPM): relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c

This model is considered superior to DVM. Hence, we will use the CAPM

Using the CAPM , the expected return on a asset is given as follows:

E(r)= Rf +β(Rm-Rf)

E(r) =? , Rf- 2.4%, Rm- 12.1% β- 1.01

E(r) = 2.4% + 1.23×(12.1- 2.4)% = 12.20 %

Cost of preferred stock= 12.20 %

Using the dividend valuation model

Intrinsic value = 9/0.1220=73.77

Intrinsic value=$73.77

5 0

3 years ago

Which option is an example of labor as a factor of production?

dolphi86 [110]

Answer:A

Explanation:

8 0

2 years ago

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The following are the typical classifications used in a balance sheet:

goldfiish [28.3K]

Answer:

a. Current assets

Allowance for uncollectable accounts

Inventories

Prepaid rent for next 9 months

Cash

b. Investments and funds

Investment in xyz corporation

c. Property, plant, and equipment

Equipment

Land in use

Building in use

d. Intangible assets

Patents

e. Other assets

Land held for investment

f. Current liabilities

Accounts payable

Deferred rent revenue for the next 12 months

Notes payable due in 6 months

Accrued liabilities

Taxes payable

g. Long-term liabilities

Notes payable due in 5 years

h. Paid-in-capital

Common stock

i. Retained earnings

Income less dividend accumulated

Explanation:

A Balance Sheet shows the balances of Assets, Liabilities and Equity as at the reporting date.

Assets

There are two major asset categories which are Current Assets and Non- Current Assets. Current Assets are assets not exceeding 12 months examples are Inventories and Cash. Whilst Non-Current Assets are assets exceeding a period of 12 months examples are Property, Plant and Equipment items such as Land, Investments and Intangible Assets

Liabilities

There are two major asset categories which are Current Liabilities and Non- Current Liabilities. Current Liabilities are liabilities due to be paid within a period not exceeding 12 months examples are Accrued liabilities and Accounts payable. Whilst Non-Current Liabilities are assets liabilities payable in a period exceeding 12 months examples are Notes payable due in 5 years.

Equity

We have Paid In Capital such as Common Stock and Retained Earnings comprising of Profits and dividends.

Classification of items as will be shown in the balance sheet will be done as above.

3 0

3 years ago