Complete Question:
BenchMark, Inc., just paid a dividend of $3.45 on its stock. The growth rate in dividends is expected to be a constant 5 percent per year indefinitely. Investors require a return of 13 percent on the stock for the first three years, a return of 11 percent for the next three years, and then a return of 9 percent thereafter. What is the current share price for the stock.
Answer:
BenchMark, Inc.
The current share price for the stock is:
$43.13
Explanation:
a) Data and Calculations:
Dividend per share = $3.45
Growth rate = 5%
Investors' required rate of return = 13%
Stock value = Dividend per share / (Required Rate of Return – Dividend Growth Rate)
= $3.45/(0.13 - 0.05)
= $43.13
b) We can calculate BenchMark's current share price, by dividing the dividend per share by the investors' required rate of return after subtracting the growth rate from the required rate of return.
Answer:
Allowance for Doubtful Accounts 100 Accounts Receivable 100
Explanation:
The allowance method first estimates an allowance for doubtful debts.When the company receives the actual figure of the amount that have gone wrong, it writes off the trade receivable and utilizes the allowance provided for
<u>When allowance is estimated </u>
Bad Debts (debit)
Allowance for doubtful debts (credit)
<u>When the actual figure of the amount that have gone wrong is obtained</u>
Allowance for doubtful debts (debit)
Account Receivable (credit)
Ancient religious structures
Answer:
b. blue ocean strategy
Explanation:
Instead of competing against rival companies in the mass-produced games market (red ocean), Adam is carving out his own market by offering the consumer a higher end product that, although is still composed of games, consists a in whole new segment with much less competition, if any (blue ocean).
Therefore, the correct answer is b. blue ocean strategy
C because some people can not afford to buy private goods which leads them to be excluding them from the products a firm makes
