Answer:
3.each principle is approved by the SEC.
Explanation:
Generally Accepted Accounting Principles are primarily specific accounting guidelines controlled by the Financial Accounting Standards Board (FASB) for financial reporting purposes. As such the practice has become universally accepted overtime, and every accountant considers GAAPs useful to their profession. Furthermore, most companies see it as an authority in accounting reporting.
However, not all GAAPs are approved by the SEC, primarily the SEC is concerned about those principles and standards that affect companies with public traded securities while it delegates the setting of appropriate standards for private organisations to the Committee on Accounting Procedure which was then later delegated to the FASB.
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What is the question you are looking to have answered?
Answer:
b.) was established by congress but is now independent of it
Explanation:
It was founded on december of 1913 by the congress of the United State of America. to help the nation on the monetary and financial of the country.
It is considered independent of the congress because, it doesn't require his approval to conduct their policies.
Answer:
$24.587
Explanation:
Given:
Annual dividend paid = $1
Expected growth rate for 2 years = 25% = 0.25
After 2 years growth rate = 5%
required return for deployment specialists = 11.0%
Now,
At the end of year 1, Expected dividend on stock = $1 × (1 + 25% ) = $1.25
At the end of year 2, Expected dividend on stock = $1.25 × (1 + 25%)
= $1.5625
At the end of year 2, Expected dividend on stock = $1.5625 × (1 + 5% )
= $1.640625
and,
Value of stock at the end of Year 2 = ![\frac{\textup{Expected dividend on stock at end of Year 3}}{\textup{(Required return - Dividend growth rate)}}](https://tex.z-dn.net/?f=%5Cfrac%7B%5Ctextup%7BExpected%20dividend%20on%20stock%20at%20end%20of%20Year%203%7D%7D%7B%5Ctextup%7B%28Required%20return%20-%20Dividend%20growth%20rate%29%7D%7D)
= ![\frac{\textup{1.640625 }}{\textup{(0.11 - 0.05)}}](https://tex.z-dn.net/?f=%5Cfrac%7B%5Ctextup%7B1.640625%20%7D%7D%7B%5Ctextup%7B%280.11%20-%200.05%29%7D%7D)
= $ 27.34375
Therefore,
The Intrinsic value of stock = ![\frac{1.25}{(1+0.11)}+\frac{1.5625 + 27.34375}{(1+0.11)^2}](https://tex.z-dn.net/?f=%5Cfrac%7B1.25%7D%7B%281%2B0.11%29%7D%2B%5Cfrac%7B1.5625%20%2B%2027.34375%7D%7B%281%2B0.11%29%5E2%7D)
= 1.1261 + 23.4610
= $24.587