Answer:
Dr. Trading securities $4,800
Cr. Unrealized gain on trading securities $4,800
Explanation:
Trading securities are recorded reported on the fair market value. The gain or loss arise from the increase or decrease in the value of trading securities. There is a gain if the price of trading security increases and loss when the price of the trading security decreases. Unrealized gains are reported in the separate section of stockholders equity.
Gain on Trading securities = Fair value of security portfolio - Cost of security portfolio = $46,300 - $41,500 = $4,800
Answer:
The correct answer is "$ 30.34".
Explanation:
The value of the stock can be computed by the following formula:
⇒ ![\frac{Dividend \ in \ year \ 3}{(1 + Required \ return \ rate)2} + \frac{Dividend \ in \ year \ 4}{(1 + Required \ return \ rate)3} + \frac{Dividend \ in \ year \ 5}{(1 + Required \ return \ rate) 4 } + \frac{1}{(1 + Required \ return \ rate)4 }\times [\frac{( Dividend \ in \ year \ 5 (1 + Growth \ rate)} {( Required \ return \ rate - Growth \ rate)}]](https://tex.z-dn.net/?f=%5Cfrac%7BDividend%20%5C%20in%20%5C%20year%20%5C%203%7D%7B%281%20%2B%20Required%20%5C%20return%20%5C%20rate%292%7D%20%20%2B%20%5Cfrac%7BDividend%20%5C%20in%20%5C%20year%20%5C%204%7D%7B%281%20%2B%20Required%20%5C%20return%20%5C%20rate%293%7D%20%20%2B%20%5Cfrac%7BDividend%20%5C%20in%20%5C%20year%20%5C%205%7D%7B%281%20%2B%20Required%20%5C%20return%20%5C%20rate%29%204%20%7D%20%2B%20%5Cfrac%7B1%7D%7B%281%20%2B%20Required%20%5C%20return%20%5C%20rate%294%20%7D%5Ctimes%20%5B%5Cfrac%7B%28%20Dividend%20%5C%20in%20%5C%20year%20%5C%205%20%281%20%2B%20Growth%20%5C%20rate%29%7D%20%7B%28%20Required%20%5C%20return%20%5C%20rate%20-%20Growth%20%5C%20rate%29%7D%5D)
On putting the values, we get
⇒ ![\frac{1.50}{1.08^2} + \frac{1.60}{1.08^3} + \frac{1.75}{1.08^4 } + \frac{1}{1.08^4} \times [ \frac{( 1.75\times 1.03)}{(0.08 - 0.03)}]](https://tex.z-dn.net/?f=%5Cfrac%7B1.50%7D%7B1.08%5E2%7D%20%20%2B%20%5Cfrac%7B1.60%7D%7B1.08%5E3%7D%20%20%2B%20%5Cfrac%7B1.75%7D%7B1.08%5E4%20%7D%20%2B%20%5Cfrac%7B1%7D%7B1.08%5E4%7D%20%5Ctimes%20%5B%20%20%5Cfrac%7B%28%201.75%5Ctimes%201.03%29%7D%7B%280.08%20-%200.03%29%7D%5D)
⇒ 
⇒ 
($)
Answer:
True
Explanation:
The Bass New forecasting model is a forecasting model that is commonly used to estimate the sales of a product at a certain in future and it is used for highly durable goods.
The bass new forecasting model wad developed by Frank Bass and it has a formula
<u> f ( t ) </u> = p + qF ( t )
1 - f ( t )
where:
f ( t ) is the change of the installed base fraction
F(t) is the installed base fraction
p is the coefficient of innovation
q is the coefficient of imitation
Cheers.
