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Karolina [17]
3 years ago
10

According to the 2018 Value Line Investment Survey, the growth rate in dividends for Ralph Lauren for the next five years will b

e .5 percent. If investors feel this growth rate will continue, what is the required return for the company's stock?
Business
1 answer:
pantera1 [17]3 years ago
4 0

Answer:

Higher than 0.5%

Explanation:

Since the rate of return is calculated as dividend payment/stock price + dividend growth rate and since that growth rate for the next five years will be 0.5 %, than rate of return will be higher than 0.5 %.

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organizations design and implement systems to capture the details of transactions involved in each business
IgorLugansk [536]

Organizations design and implement accounting information systems to capture the details of transactions involved in each business.

<h3>What is accounting information?</h3>

Accounting information is fed into an accounting information system that uses computers to process data. It records and tracks all the accounting activity of the business by making use of information technology systems and resources.

to know more about accounting information go to the given link:

brainly.com/question/28099511

#SPJ4

4 0
2 years ago
Nicole is a calendar-year taxpayer who accounts for her business using the cash method. On average, Nicole sends out bills for a
BigorU [14]

Answer:

a) I guess that Nicole bills $12,000 per month, not $512,000.

Assuming that the last time Nicole billed her customers was November, she was able to collect $11,760 before the year ended. I will also assume that the remaining $240 are uncollectible.

If Nicole postpones billing her customers during December, her taxable income as a cash basis taxpayer will decrease by $12,000 x 70% = $8,400

she will be able to save $8,400 x 2% = $168 in current taxes, but she will have to pay them next year anyways.

b) The time value of money should affect Nicole's calculations because she is saving the interests that could be earned by $168 in 1 year. We are not given any specific interest rate but we could use 6% as an example. Nicole will gain $168 x 6% = $10.08

But she will also lose potential interests earned on the $8,400 that she billed later. Using the same interest rate, 6%, she will lose $8,400 x 6% x 1/12 (only 1 month) = $42.

That means that the net result from this = $10.08 - $42 = -$31.92.

As you can see, Nicole is losing money. The higher the interest rate, the more money she will lose.

c) The risk of increasing uncollectible accounts will always exist. Nicole already has around 2% of uncollectible accounts, and combining two bills at one time might lead to a higher percentage of uncollectible accounts. Of course, this depends on her clients, but the risk will increase a little bit or a lot, but it will increase.  

4 0
3 years ago
Shahia Company bought a building for $88,000 cash and the land on which it was located for $117,000 cash. The company paid trans
chubhunter [2.5K]

Answer:

Depreciation amount at the end of one year is $10,900

Explanation:

Land is not depreciated because land is assumed to have an unlimited useful life. Building is a long lived assest and it has limited useful lives. Therefore, building is depreciated assets.

The building acquisition cost is = Building transaction value + building transfer costs + Renovation cost

= $88,000 + $4,000 + $25,000

= $117,000

Depreciation value = The building acquisition cost - The residual value

= $117,000 - $8,000

= $109,000

Depreciation amount under the Straight-line method is calculated as below:

Yearly depreciation = \frac{Depreciation Value}{Useful life}

= \frac{109,000}{10}

= $10,900

6 0
3 years ago
In a competitive market with identical firms, A. firms cannot earn positive economic profit in either the short run or long run.
Ksenya-84 [330]

Answer:

The answer is C.

Explanation:

In a competitive market, all firms produce identical goods and services. No firm or seller can influence the prevailing market price. To increase their revenue, firms must increase their outputs.

In this industry, firms make economic profit(revenue minus accounting cost minus implicit cost) in the short run but this economic profit reduces to zero in the long run because more firms that are attracted by the short run profit can enter the industry freely. Firms can also exit with little or no cost.

4 0
3 years ago
A person buys X in one market and combines it with Y purchased in another market. The combination of X and Y gives Z, which the
Sindrei [870]

Answer:

arbitration

Explanation:

Arbitration occurs when the price of a security or a commodity varies significantly between different markets. For example, I purchase gold in the United Kingdom at a lower price than in the United States, and I bring it to the United States and make a profit. Arbitration opportunities result from market inefficiencies and a lack of a single price.

8 0
3 years ago
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