Answer:
The intrinsic value of Stock A is 500
Explanation:
According to the DDM method the formula for calculating the intrinsic value of a stock is
Upcoming Dividend/Required rate of return - Growth rate of stock.
Upcoming Dividend of Stock A= 5
Required rate of return on Stock A= 11% or 0.11
Growth rate on stock A= 10% or 0.10
Intrinsic value of stock A=
5/(0.11-0.10)=5/0.01=500
The intrinsic value of Stock A is 500
Answer:
TRUE
Explanation:
A market opportunity indicated the Place time or commodity that helps to start or grow a business.
This market opportunity is like a forecast for a particular business to start and grow, when a proprietor gets the market opportunity he will start his business according to market forecast that helps him creating a suitable market for manufacturing commodities .
Answer:
e. Debit Petty Cash $50 Credit Cash $ 50
Explanation:
The entry on October 01 is to reflect the increase in Petty Cash from $ 250 to $ 300. i.e the incremental effect is only $ 50. This is because for the regular replenishment that was done on September 30, the following entry would have been recorded:
Petty Cash - Debit $ 232
Cash - Credit $ 232
The entry for recording the petty cash expenses would be as follows;
Office Supplies expense debit $ 73
Merchandise Inventory debit $ 137
Miscellaneous expenses debit $ 22
Petty Cash credit $ 232
