Answer:
The answer is A, parallel, although some people think it is hard, it is the most easiest and orderly.
The answer is x+2 because you need to plug the thingy into the doo-hicky
Answer:
<em>Journal entry to record the issuance of materials</em>
Date Accounts & explanation Debit Credit
Work in process $61,600
(2,800+24,000+3,200+31,600)
Factory overhead $1,620
Material $63,220
(To record the issuance of material)
Answer:
Debit to Salaries Expense $2,700; Credit to Salaries Payable $2,700
Explanation:
In accounting, we have to recognize all expenses even though we haven't paid it yet. This is one of those instances.
The employees have worked for 3 days at the end of January but will not receive their payment on that day. That equates to $2,700 of salaries accrued at the end of January.
Accrued Expenses are recorded as payables, in this problem it's "Salaries Payable".
So to complete the adjusting journal entry:
(Debit) Salaries Expense $2,700
(Credit) Salaries Payable $2,700
Answer:
The intrinsic value per share is $33.92
Statement A is true about the constant growth model.
A. The constant growth model can be used if a stock's expected constant growth rate is less than its required return
Explanation:
The fair value or the intrinsic value per share of a stock whose dividends grow by a constant rate forever can be calculated using the constant growth model of dividend discount model approach. This model values a stock based on the present value of the expected future dividends from the stock. The fair value today under this model is calculated as follows,
P0 = D0 * (1+g) / (r - g)
Where,
- D0 * (1+g) is the dividend for the next period or D1
- r is the required rate of return
- g is the constant growth rate
P0 = 2.88 * (1+0.06) / (0.15 - 0.06)
P0 = $33.92
The constant growth model can only be used when the sustainable or constant growth rate is less than the required rate of return because a growth rate which is higher than the required rate of return will provide a negative share price and the prices for shares can never be negative. Thus statement A is correct.