Answer:
Current price = $20.50
Explanation:
Data provided in the question;
Growth rate, g = 20% = 0.2 for the 2 years
Growth rate, g' = 15% = 0.15 for the following 2 years
after 4 years annual dividend = $3
Last dividend paid, D0 = $1
Required rate of return, r = 12% = 0.12
Now,
D1 = D0 × (1 + g)
= $1 × (1 + 0.2)
= $1.2
D2 = $1 × (1 + 0.2)²
D3 = $1 × (1 + 0.2)² × (1 + 0.15)
D4 = $1 × (1 + 0.2)² × (1 + 0.15)²
D5 = 3
Therefore,
Current price = 
+ 
+ 
+ 
+ 
⇒ Current price = $20.50
Answer:
By retrospective application to the financial statements of all prior periods presented.
Explanation:
From the question we are informed about Volga Co. who included a foreign subsidiary in its Year 6 consolidated financial statements. The subsidiary was acquired in Year 4 and was excluded from previous consolidations. The change was caused by the elimination of foreign currency controls. Including the subsidiary in the Year 6 consolidated financial statements results in an accounting change that should be reported By retrospective application to the financial statements of all prior periods presented.
Consolidated financial statements can be regarded as financial statements of a particular group whereby equity, assets as well as liabilities and cash flows and expenses of the parent company as well as its subsidiaries are been presented in a way of single economic entity. In others words Consolidated financial statements can as well be regarded as financial statements of an organization having multiple divisions or multiple subsidiaries. Some firms often use the consolidated as regards financial statement reporting to describe aggregated reporting of business collectively.
Answer:
Manual. Manual sewing machines are run by pedaling and therefore, no electricity or battery is required to run them. ...
Electronic. These machines have a single motor that runs on electricity
Explanation:
Answer:
Maximum total profit = $4,800
Explanation:
When a business is faced with a problem of shortage of a resource which can be used to produced more than one product type, to maximize the use of the resource , the business should allocate it for production purpose in such a way that it maximizes the contribution per unit of the scare resource.
Therefore the Company should allocate the budget cost to maximize the profit per production cost. This is done as follows:
Calculate the profit per budget cost and rank the product
Gasoline Heating oil
Profit per product cost 3/6=0.5 4/8= 0.5
The two products produce the same profit per dollar of cost which is $0.5. So, they are equally ranked.
So the total profit= the budget cost × profit per budget
= 9,600× $0.5 =$4,800
Maximum total profit = $4,800
Rules protecting private property are some of the most important rules in a free market system, because people need to own resources or assets in order to make free choices.
