The case of QHIC will have an accurate prediction but not the Tasty Sub Shop Case.
Explanation:
<u>Simple Linear Regression Analysis is done to predict the trend of one variable in accordance with another independent variable</u>. This concept does not account for multiple independent or interdependent factors in predictions.
<u>Thus, the projections are accurate when there is only one factor involved to influence the Prediction.</u>
This is so in the QHIC case as any household that spends more on home upkeep will be an ideal advertising target for the firm.
However, just the number of residents in the locality cannot ensure the profitability of a restaurant. competition from other restaurants, net income and eating habits of the locality must also be considered.
The best estimate of the current stock price is $48.31.
<h3>
What is dividend?</h3>
Dividend refers to the profit earned after reducing all the expenses and the cost. The dividend is the money distributed to the stakeholders by the company.
According to the above case, The pineapple Company earned the dividend of $1.75 and growth rate is constant at the rate of 25% for 2 years.
The best price estimate of the current stock = =[$1.75(1.25)2(1.06)]/(0.12-0.06)
= $48.31.
The best estimate of the current stock price is $48.31.
Learn more about Dividend here:
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Answer:
$4,800
Explanation:
The computation of the accumulated depreciation would Lidos report on the 2017 balance sheet is shown below:
= (Purchase value of new oven- estimated salvage value ) ÷ (expected useful life)
= ($15,000 - $3,000) ÷ (5 years)
= ($12,000) ÷ (5 years)
= $2,400
Now for 2017, the accumulated depreciation is
= Depreciation expense × number of years
= $2,400 × 2 years
= $4,800
Answer:
Call in Arrear
The company calls for money from shareholders when needed within a certain period. If the shareholder is not able to pay the call amount due on an allotment or on any calls according to the terms before or on the specific date fixed for payment, such amount is taken as 'call in arrears'.
Explanation:
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