Answer:
$55.134
Explanation:
Given
dividend paid on its stock = $8.25
Duration is next 13 years
P0 = dividend on its stock × (PVIFA of return on this stock,years)
Remember PVIF = (1 - (1 + r)^-n)/r
Where PVIFA = present value interest factor of annuity
r = interest rate per period
n = number of periods
Therefore
P0 = $8.25 × (PVIFA11.2%,13)
P0 = $55.134
Answer:
b. protects the current shareholders against a dilution of their ownership interests.
Explanation:
Shares are ownership interests that are owned by business owners and measures the degree to which an individual has a stake in a company.
Preemtive right occurs when a shareholder has a right to purchase a particular portion of newly issued shares.
For example if an individual has 40,000 shares and additional 250,000 shares are issued, he can have the right to purchase an additional 30,000 of the new shares.
The preemtive right prevents dilution of ownership interests by ensuring old stockholders have a stake in newly issued shares.
Answer: B) employee’s compensation.
The income approach to measure gross domestic product or GDP starts with the income earned (wages plus plus rents plus interest plus profits) from the production of goods and services.
Based on the income-based method of calculating GDP, income or wages earned by Joe and Michelle for being partners can be categorized under B) employee’s compensation.
Overdrafts are given by banks only to trustworthy clients. if the bank balance is maintained clearly. To avoid overdrafts there should always be a sufficient amount of balance and avoid using cheques on situations as such.avoid ATM cards as well
