This type of agreement is a violation of the Sherman Act.
A piece of antitrust law from the United States, the Sherman Antitrust Act of 1890, established the idea of unlimited competition between companies. It was authorized by Congress, and its main author is Senator John Sherman. The Sherman Act forbids "any contract, combination, or conspiracy in restraint of trade," as well as "every monopolization, attempted monopolization, conspiracy, or combination to monopolize." In order to avoid monopolistic alliances that impede trade and erode economic competition, the Sherman Antitrust Act was created in 1890. It prohibits both formal cartels and attempts to monopolize any sector of American commerce.
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Answer:
(a) 12.95%
(b) 6.70%
Explanation:
(a)
Risk free rate = 5.30%
Risk Premium = 5.10%
Beta = 1.50
Cost of Equity is calculated below using CAPM formula:
Expected rate of return:
= Risk free rate + Risk Premium × Beta
= 5.30% + 5.10% × 1.50
= 5.30% + 7.65%
= 12.95%
Hence, Cost of equity for company stock is 12.95%.
(b) Value of stock = Expected dividend ÷ (cost of equity - Growth rate)
$32 = $2 ÷ (12.95% - Growth rate)
(12.95% - Growth rate) = $2 ÷ $32
Growth rate = 12.95% - 6.25%
= 6.70%
Hence, the growth rate in dividend is 6.70%.
Answer:
Therefore would be Decrease in the financing section of the amount of $30,000.
Explanation:
Based on the information given if Goehring Inc owns 70% of Harry, Inc in which the consolidated income statement for a year reported the amount of $40,000 as Noncontrolling Interest in Harry, Inc. Income which means that if Harry paid dividends in the amount of $100,000 for the year the effects of these transactions that occured in the consolidated statement of cash flows for the year will be Decrease in the financing section of the amount of $30,000 calculated as :
Consolidated statement of cash flows=$40,000-(70%*$100,000)
Consolidated statement of cash flows=$40,000-$70,000
Consolidated statement of cash flows=$30,000(Decreased)
Answer:
Depreciable amount= $880,000
Explanation:
Giving the following information:
Your company buys a tower crane for $900,000 on January 1, 2019. It has a 20-year life, it's expected salvage value is $20,000.
To calculate the annual depreciation, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (900,000 - 20,000)/20= $44,000
Depreciable amount= original cost - salvage value= 880,000
