Answer:
Home Parties is paying an annual dividend of $1.78 every other year. The last dividend was paid last year. The firm will continue this policy until two more dividend payments have been paid. Three years after the last normal dividend payment, the company plans to pay a final liquidating dividend of $32 per share. What is the current market value of this stock if the required return is 14.7 percent?
The current market value of this stock = $16.78.
Explanation:
Current market value of this stock = $1.78/1.147 + $1.78/1 .147∧3+ $32/1.147∧6
Current market value of this stock= 1.55187 + 1.78/1.509 + 132/2.27709
Current market value of this stock= 1.55187 + 1.17959 + 14.053
The current market value of this stock = $16.78.
Answer: B. use of market price leads division managers to act in a manner that is inconsistent with corporate goals.
Explanation: Market-based transfer pricing is perhaps the easiest form of transfer pricing when it comes to determining the price that will be paid between divisions of the same company. It uses the normal market rate that would be paid if the goods were bought on the open market.
Transfer pricing helps in reducing duty costs by shipping goods into countries with high tariff rates at minimal transfer prices so that the duty base of such transactions is fairly low.
Answer:
Option A is correct,price discrimination
Explanation:
Price discrimination is charging different customers different prices in the same or different markets.
There are laws that frown against price discrimination in order to ensure fairness in business dealings and to ensure the activities of price discriminator does have negative effects on consumers or businesses that rely on the price discriminator for inputs.
A typical example of price discrimination is financial aid which is common with online courses,where certain people due to their peculiarities are offered financial assistance in their bid to study that is available to some other students.
Answer:
Company Save $37000 by Buying
Explanation:
given data
make component part = 100 units
Direct Materials = $122000
Direct Labor = 34000
Variable Overhead = 55000
Fixed Overhead = 30000
purchase the component = $200000
fixed costs = $4000
to find out
make or buy decision
solution
first we find here Total Cost for Making component part
total cost = Direct Materials + Direct Labor + Variable Overhead + Fixed Overhead ..............1
put here value
total cost for make = $122000 + 34000 + 55000 + 30000
total cost for make = $241000
and
now we find here Total Cost for buying component part
total cost = Purchase Price + fixed costs ............2
put here value we get
total cost for buying = $200000 + $4000
total cost for buying = $204000
so
we can say Company Save = $241000 - $204000 = $37000 by Buying
Answer:
$268,500
Explanation:
When you use the indirect method to calculate net cash flows, you start with net income and then adjust it by:
- adding the amount by which accounts receivable decreased = ($17,000 - $10,500) = $6,500
- deducting the amount by which accounts payable increases = ($21,000 - $29,000) = -$8,000
net cash flow from operating activities = $270,000 + $6,500 - $8,000 = $268,500