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3 years ago

You’ve collected the following information from your favorite financial website.

Business

1 answer:

Nataliya [291]3 years ago

3 0

Answer:

-9.92%

Explanation:

P₀ = Div₁ / (Re - g)

Div₁ = next year's expected dividend = $1.12 x (1 - 11.5%) = $0.9912
Re = cost of equity = ?
P₀ = current stock price = $62.91
g = dividend's growth rate = -11.5%

Re = (Div₁ / P₀) + g

Re = ($0.9912 / $62.91) - 11.5%

Re = 1.58% - 11.5% = -9.92%

Since the cost of equity or required rate of return cannot be negative, I suppose that investors are not worried about Abbott distributing dividends, instead, they prefer that the company reinvests earnings in new projects.

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Match each type of tax with an example of its use.

Verizon [17]

Answer:

Property tax: 1 percent charged on the value of all residential houses

Excise tax: $2 tax charged on each pack of cigarettes

Sales Tax: 7 percent charged on the purchase of all non- necessary goods

Explanation:

Property tax is the tax that is charged on the property that is being purchased based on the tax rates in that jurisdiction where the property is located in. The property can be building or land. The value changes based on the developments that take place in the surroundings.

Excise tax are charged on specific goods like fuel, alcohol and cigarettes . These are international taxes charged within the country. They are generally charged on businesses. They are not paid directly by the consumers.

Sales tax is collected on the sales of goods or services. These sales tax are charged by the retailers to the customers which are then paid by retailers to the government.

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3 years ago

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Answer: c. $16,664.44

Explanation:

The interest amount is = Amount * Interest * 280/360

= 15,804 * 7% * 280/360 days

= $860.44

Add that to the amount borrowed;

= 15,804 + 860.44

= $16,664.44

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3 years ago

Gomez runs a small pottery firm. He hires one helper at $13,000 per year, pays annual rent of $5,500 for his shop, and spends $2

alisha [4.7K]

Answer:

(a) $35,000

(b) $8,000

Explanation:

(a) Accounting profit:

= Total revenue - Explicit cost

= $75,000 - (wages + Annual rent + Material cost)

= $75,000 - ($13,000 + $5,500 + $21,500)

= $75,000 - $40,000

= $35,000

(b) Economic Profit:

= Total revenue - Explicit costs - Implicit costs

= $75,000 - (wages + Annual rent + Material cost) - (Income from investment + Earnings as a potter + Worth of entrepreneurial talents)

= $75,000 - ($13,000 + $5,500 + $21,500) - ($5,500 + $19,000 + $2,500)

= $75,000 - $40,000 - $27,000

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4 years ago

Use the following information to answer questions Skip to question [The following information applies to the questions displayed

andre [41]

Answer:

Missing word "a. Direct labor usage. b. Indirect labor usage. c. Total payroll paid in cash. Prepare journal entries for the above transactions for the month of May"

S/n General Journal Debit Credit

a Work in Process inventory $265,000

($345,000 - $80,000)

Factory wages payable $265,000

(To record for Direct labor usage)

b Factory overhead $80,000

Factory wages payable $80,000

(To record for Indirect labor usage)

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Cash $345,000

(To record for Total payroll paid in cash)

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A is the right answer

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