Answer:
Maximum price = $43.50
Explanation:
<em>According to the dividend valuation model , the current price of a stock is the present value of the expected future dividends discounted at the required rate of return </em>
This principle can be applied as follows:
The value of cash flow the stock today is the present value of the future cash flow discounted at the required rate of return
The Di
P= D/ke
P= price of the stock today,- ?
D- annual dividend- 6.20
Ke- Cost of equity-14.25%
Price = 6.20/0/14.25=43.50
Maximum price = $43.50
Answer:
The amount of the increase to the Cash account is $10,450
Explanation:
<em>Cash account </em>
Cash for services performed during July $900
Cash from the issuance of common stock to owners $5350
Cash received from customer as payment for services performed during June $450
Cash Borrowed from bank $2600
Cash received from customer service to be performed during august $1150
Total sum is Cash account increase of $10,450
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Answer:
Sales Revenue 549,500
<em><u>Less</u></em> Cost of goods sold (325,600)
Gross Profit 221,900
<em><u>Less</u></em> Expenses
Salaries and wages expense (120,500)<em> </em>
Other operating expenses (11,970)
Income tax expense (29,130) (161600)
Net Income 60300
Explanation:
A single-step income statement
Does not give distinction to Operating Incomes and expenses and Non-operating Income and expenses. All expenses are deducted in the same category.
Unrealized gain on value of patents
Patents are Intangible Assets. The gain in Patents Is Adjasted in Income statement subject to previous revaluations if Fair Value Model was elected by Ivnhoe Co for its subsequent measurement of Intangible assets
Increase in value of company reputation
Company Reputation is a special Intangible Asset called Goodwill. The gain in Goodwill. Goodwill is Internally generated. Not Recognised in Ivanhoe Co unless if it is purchased.
