Answer: Po = D1/Ke + g
$34.75 = D1/0.104 + 0.039
$34.75 -0.039 = D1/0.104
$34.711 = D1/0.104
D1 = 34.711 x 0.104
D1 = $3.61
Explanation: In this question. there is need to apply the formula for determining the current market price of a common stock. The current market price of a common stock is a function of next dividend capitalised at the appropriate cost of equity plus growth rate. in addition, we need to make the next dividend the subject of the formula.
<u>Answer: </u>Option C Satisfy the inquiry and take the opportunity to introduce another product as well.
<u>Explanation:</u>
The first important thing in customer inquiry is that it has to be attended as soon as possible. It is a way to enhance the business and make the customer buy more when their doubts are clarified.
The other products of the business can be promoted along with the answers to the inquiry. This is the opportunity for the business to directly contact the customer so it has to be made use of. While another product is introduced the customer would be willing to know or buy the other product also.
The correct answer is choice b - the percentage of receivables basis.
When an accountant is calculating the bad debts expense they will take into account the balance in the Allowance for Doubtful Account when they are calculating on the percentage of sales basis.
