4) Trade-off
5) it might be "Their resources are limited"
Answer:
The most you would pay per share is $18.90 price per share today.
Explanation:
Note: See the attached file for the calculation of present values for year 1 to 3 dividends.
From the attached excel file, we have:
Previous year dividend in year 1 = Dividend just paid = $1.40
Total of PV of dividends from year 1 to year 3 = $4.50720663265306
Year 3 dividend = $1.55542091836735
Therefore, we have:
Year 4 dividend = Year 3 dividend * (100% + Dividend growth rate in year 4) = $1.55542091836735 * (100% + 4%) = $1.61763775510204
Price at year 3 = Year 4 dividend / (Rate of return - Perpetual dividend growth rate) = $1.61763775510204 / (12% - 4%) = $20.2204719387755
PV of price at year 3 = Price at year 3 / (100% + Required return)^Number of years = $20.2204719387755 / (100% + 12%)^3 = $14.3925325274857
Price per share today = Total of PV of dividends from year 1 to year 3 + PV of price at year 3 = $4.50720663265306 + $14.3925325274857 = $18.90
Therefore, the most you would pay per share is $18.90 price per share today.
Answer:
106,200 units
Explanation:
During August,
Department Z started and completed = 90,000 units
Finished units = 18,000 units
Ending inventory = 26,000 units
The number of equivalent units of production for Department Z during August:
= Started and completed units + (25% of finished units) + (45% of Ending inventory)
= 90,000 + (18,000 × 0.25) + (26,000 × 0.45)
= 90,000 + 4,500 + 11,700
= 106,200 units
Answer:
Dr Salaries expense $7,552
Cr Accrued salaries $7,552
Being entries to record salaries payable as at year end
Explanation:
When an expense is incurred but yet to be paid by an organization, the entries required are
Dr Expense (p/l)
Cr Accrued expense (B/s)
when payment is made
Dr Accrued expense (B/s)
Cr Cash account
Given that Zoey Bella Company has a payroll of $9,440 for a five-day workweek and the year ends on a Thursday. As such, the company as at 31 December has incurred salaries for 4 days. This has to be accrued for but first to calculate the amount
= 4/5 * $9,440
= $7,552
Hence adjusting entry required on December 31, assuming the year ends on a Thursday
Dr Salaries expense $7,552
Cr Accrued salaries $7,552
Being entries to record salaries payable as at year end
Answer:
d.The same person that prepares the check should also record it in the proper journal.
Explanation:
Internal control is essential so that any frauds shall not take place. Also that the primary condition is that all the work shall be segregated in different stages, to different people so that there is a check on the quality of work done by the each person.
Thus, when a check is to be issued then the same shall be recorded by some different person, so that the person recording can verify is the check amount and party accurate and not fraud.
