Answer:
Home Parties is paying an annual dividend of $1.78 every other year. The last dividend was paid last year. The firm will continue this policy until two more dividend payments have been paid. Three years after the last normal dividend payment, the company plans to pay a final liquidating dividend of $32 per share. What is the current market value of this stock if the required return is 14.7 percent?
The current market value of this stock = $16.78.
Explanation:
Current market value of this stock = $1.78/1.147 + $1.78/1 .147∧3+ $32/1.147∧6
Current market value of this stock= 1.55187 + 1.78/1.509 + 132/2.27709
Current market value of this stock= 1.55187 + 1.17959 + 14.053
The current market value of this stock = $16.78.
Answer:
a. the income effect.
Explanation:
The income effect is the change in demand with respect to the good or service that due to change in the purchasing power of the consumer results in change in real income
Since in the situation it is mentioned that she received a big bonus this year and she decided for a trip to europe so here the purchasing power would be changed due to the income effect
hence, the option a is correct
Answer:
c.credit to Wages Payable for $6,300.
Explanation:
The journal entry to record the wages expense is shown below;
Wages expense dr ($10,500 × 3 ÷ 5) $6,300
To Wages payable $6,300
(being the wages expense is recorded)
Here the wages expense is debited as it increased the expense and credited the wages payable as it increased the liabilities
NO BILLS THAT NEED TO BE PAID
SOMETHING EASY NOT TOO COMPLICATED
I HOPE THIS HELPED
