Answer: $62.50
Explanation:
The stock price of Locked-In Real Estate (LIRE) will be calculated thus:
Stock price = D /ke - g
where,
D = Dividend paid per share = $7.50
Ke = expected rate of return on equity = 12% = 0.12
g is growth rate of dividend = 0
Stock price = $7.50/0.12
Stock price = $62.5
Therefore, the stock price is $62.50
Answer:
E. Debit Retained Earnings $7,400; credit Common Dividends Payable $7,400.
Explanation:
The Journal entry is shown below:-
Retained earnings Dr, $7,400 (14,800 × $0.50)
To Common dividend Payable $7,400
(Being dividend declaration is recorded)
Here to record the dividend declaration we simply debited the retained earnings as it decreased the stockholder equity and credited the common dividends payable as it increased the liability
So the correct option is D.
Answer:
Predetermined manufacturing overhead rate= $1.961 per direct material dollar
Explanation:
Giving the following information:
At the beginning of a year, a company predicts total direct materials costs of $1,020,000 and total overhead costs of $1,220,000.
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 1,220,000/1,020,000
Predetermined manufacturing overhead rate= $1.961 per direct material dollar
Answer:
A) True
Explanation:
Multilevel marketing is used by companies that engage in direct sales marketing and where each new salesperson or distributor must recruit more sales people to expand their activities. Some of the most famous multilevel marketing firms in the US are Avon and Herbalife.
The salesperson or distributor earns a fraction of the sales commissions that his/her recruited sales people sell. It is called the distributor's downline, and is shaped like a pyramid. In some countries this type of business is illegal because it works like a Ponzi scheme where new salespeople are recruited every time and in order to start working they must buy a certain amount of products. So a large percentage of the sales are made to other salespeople instead of customers.
