Answer:
The maximum amount that should be paid today is $11.29
Explanation:
The constant growth model of the DDM approach can be used to calculate the price or fair value per share today based on the expected dividends that the stock will pay. As the dividends are declining n this case, the dividend growth will be negative i.e. -1.5%
The formula for the price of share today is,
P0 or V = D1 / r - g
Thus,
P0 = 1.75 / (0.14 + 0.015)
P0 = $11.29
Answer:
The offer was accepted and a binding contract has been formed.
Explanation:
The offeror (Bonnie) can revoke her offer anytime before the offeree has accepted the offer. In order for the revocation to take place, the offeree must have been notified about it.
The problem here is that before the offeree (Dale) was notified that the offer had been revoked, he had already accepted the offer. So a contract has already been formed.
In common law, the posting rule establishes that an offer is accepted as soon as it has been mailed to the offeror. So in this case, Dale accepted the offer on the 7th day, and was notified about the revocation on the 8th day. So the acceptance is prior to the revocation, therefore, the revocation is not valid. The posting rule only applies to the acceptance of the offer, not to the revocation of the offer.
Answer:
Provide protective mechanisms.
Explanation:
The five principles used to create a more ethical culture at work are:
- Be a role model and be visible.
- Communicate ethical expectations.
- Offer ethics training.
- Visibly reward ethical acts and punish unethical ones.
- Provide protective mechanisms: he company needs to provide some type of formal protective mechanism for employees who want to report unethical behavior and may fear getting in trouble for doing so. This way the employee can remain anonymous and will feel conformable with disclosing the information.
Answer:
Treaty agreement
Explanation:
A treaty agreement is held between an insurer and a reinsurer, where the reinsurer states what classes of businesses it will accept from the insurer. All the policies that qualify under the treaty agreement should be accepted automatically by the reinsurer.
A reinsurer is an insurance company that insures other insurance companies.
Answer:
1. $8,000
2. $20,000
3. $16,000
Explanation:
The computation is shown below using the double-declining balance method:
First we have to find the depreciation rate which is shown below:
= One ÷ useful life
= 1 ÷ 6
= 0.16667
Now the rate is double So, 0.3333%
In year 1, the original cost is $36,000, so the depreciation is $12,000 after applying the 33.33% depreciation rate
And, in year 2, the ($36,000 - $12,000) × 33.33% = $8,000
1. So the depreciation expense is $8,000
2. Accumulated depreciation is
= $12,000 + $8,000
= $20,000
3. And, the book value is
= $36,000 - $20,000
= $16,000
