Answer:
Toyosan's air bag was defective because it did not meet the expectations of a reasonable consumer.
Explanation:
Since the airbag was not as effective as it was expected by the customers, a suit against the car manufacturers from product liability may see the court conclude that the air bag was defective since it did not meet the expectations of a reasonable consumer which would have been protecting her head from hitting the steering wheel which still occured even tho the air bag was deployed.
He should pay no more than $66.68 per share
Explanation:
Given ,
1. 2015: $1.00
2. 2016: $1.25
3. 2017: $1.50
Earnings per share = $4.50
P/E ratio = 20
Required rate of return = 12%
Stock price per share expressed according to P / E ratio
P/E Ratio = Market Price per share ÷ Earnings per share
20 = Market Price per share ÷ $4.50
Market Price per share = 20 × $4.50
Market Price per share = $90
Earn 12% of return
So here you discount to present value all the planned dividend and market price. use as discount factor here a necessary rate of return
present value of all amounts = 66.7
So, maximum amount that is paid to earn 12% return is $66.7
The realisation principle indicates that the revenue from these ticket sales should be recognised in the period in which the Wine tasting is held.
Explanation:
It complies with Revenue Recognition Accounting Policy 9. It will be a burden for the organization, until the moment services are provided for which the money is taken.
Revenue recognition is a GAAP which defines the specific conditions under which revenue can be recognized. Revenue recognition is a generally accepted concept of accounting. In fact, when the crucial event happened, profits are remembered and the value of the profit for the company is tangible.
For Example, when a product is sold, the profit accounting is relatively straightforward, and the customer pays the products. Nevertheless, the fact that a company takes a long amount of time to manufacture a commodity will confuse accounting. Consequently, there are a number of situations in which the concept of acknowledgment of profit may be excepted.
Answer:
a. .4223
Explanation:
Kim's Bridal shoppe has common stock, bonds and preferred stock in its capital. To identify capital structure weight of common stock we calculate value of each capital.
Common Stock : 10200 shares * $36 = $367,200
Preferred Stock : 215 shares * $87 = $18,705
Bonds Outstanding : 520 Bonds * $1,000 * 93% of par = $483,600
Total capital : $367,200 + $18,705 + $483600 = 869,505
Common stock share : $367,200 / $869,505 = 0.4223
