Answer:
B
Explanation:
A. the same amount to every investor regardless of their desired rate of return.
B. the present value of the future income which the stock generates.
C. an amount computed as the next annual dividend divided by the market rate of return.
D. the same amount as any other stock that pays the same current dividendand has the same required rate of return.
the dividend models are used to determine the value of a stock. It is assumed that the value of the stock is equal to the present value of the cash flows or dividends of the stock
The intrinsic value of a stock can be calculated using various dividend models. some of dividend growth models include:
1. The Gordon constant growth dividend model
2. The two-stage dividend growth model
3. The H-model
4. The three-stage dividend growth model
For example, if the dividend of a share in year 1 and 2 is 50 respectively and the discount rate is 10, the present value of the firm =
50 / (1.1) + 50 / (1.1^2) = 86.78
Answer:
See below
Explanation:
Goodwill arises when is a business is acquired as a going concern. It is an intangible asset of a business. Goodwill represents the value of a company's customer base, its location, any patents, and the brand name. It consists of the value of suppliers, customers, and employee relationships that facilitates the smooth running of the business.
The value of goodwill is the difference between the purchase price and the net cost of its tangible and other intangible assets of a business. Amortization of goodwill means spreading the cost of goodwill to several financial years.
Goodwill is amortized because the business benefits from the goodwill for many years. In other words, the expenditure on goodwill will profit the company in more than one financial year. As per the matching principle, expenses and incomes should be recognized in the period they occur. As benefits will be enjoyed in many years, the expenses should also be spread in similar years.
<span><span>(d)
George can disaffirm the contract, but he must pay for the reasonable value of
the goods. A minor who
has been emancipated has all the </span>contractual<span> rights and obligations of a person who has reached the age of majority
and the right to disaffirm is the 1st right granted to minors in
contract law cases.</span></span>
Answer:
13,915 units
Explanation:
With regards to the above, we need to determine first the target or desired profit.
Desired profit = $121,000 × 15% = $18,150
The next step is to calculate the contribution margin, which is the difference between selling price and variable cost.
Contribution margin = Sales - Variable cost
Contribution margin = $67 - $57
Contribution margin = $10 per unit
Target sales is therefore;
Target sales = (Fixed cost + Target profit) / Contribution margin
Target sales = ($121,000 + $18,150) / $10
Target sales = $139,150 / $10
Target sales = 13,915 units
