A buyer's agent has a fiduciary duty to:

The risk-free rate of return is 5%, the required rate of return on the market is 15%, and High-Flyer stock has a beta coefficien

oksano4ka [1.4K]

Answer:

P0 = $28

Explanation:

Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,

P0 = D1 / (r - g)

Where,

D1 is the dividend expected for the next year

g is the growth rate

r is the required rate of return

We first need to calculate r using the CAPM. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.

The formula for required rate of return under CAPM is,

r = rRF + Beta * (rM - rRF)

Where,

rRF is the risk free rate

rM is the market rate of return

r = 0.05 + 1.4 * (0.15 - 0.05)

r = 0.19 or 19%

Now we can calculate the price of the stock today.

P0 = 3.92 / (0.19 - 0.05)

P0 = $28

3 0

3 years ago

A review of the ledger of Cullumber Company at December 31, 2022, produces these data pertaining to the preparation of annual ad

VladimirAG [237]

Answer:

1) Dr. Insurance Expense 8,908

Cr. Prepaid Insurance 8,908

2) Dr. Prepaid Rental revenue 94,580

Cr. Rental revenue 94,580

3) Dr. Interest Expense 798

Cr. Notes Payable 798

4) Dr. Salaries and Wages Expense 3,975

Cr. Salaries and Wages Payable 3,975

Explanation:

1) Insurance

Building: (11,100/3)×1 = 3700

Vehicle : (7812/18)×12= 5208

total = 3700 +5208= 8908

2) Revenue

5380×2 = 10760 ×4 = 43040

8590 ×1 = 8590 ×6 = 51540

total = 94580

3) Notes Payable

monthly interest rate = 7%/12 = 0.0058333

interest expense = 45600× 0.005833 × 3 = 798

4) Salary Expense

615 ×5 = 3075

710 ×5 = 3550

salary per week = 3075 + 3550 = 6625

Salary per day = 6625 ÷ 5 = 1325

since they worked last three days of December so:

Salary payable = 1325 × 3 = 3975

8 0

4 years ago

The amount paid per year for the use of credit is called

dsp73

does it give choices

if not I think it is annual fee

6 0

3 years ago

The following information is available for Aikman Company. January 1, 2022 2022 December 31, 2022 Raw materials inventory $21,00

vodka [1.7K]

Answer:

a. $537,300

b. Aikman Company

Income Statement

For the year ended December 31, 2022

Sales Revenue $910,000

Less: Cost of goods sold

Raw material, beginning 21,000

Add:Purchases 150,000

Raw materials available 171,000

Less: Raw material, end 30,000

Cost of raw material used 141,000

Add: Direct labor 220,000

Prime Cost 361,000

Add: Factory overhead 180,000

Manufacturing cost 541,000

Add: Work in process, beginning 13,500

Less: Work in process, Ending 17,200

Cost of Goods Manufactured 537,300

Add: Finished Goods, beginning 27,000

Less: Finished Goods, Ending 21,000

Cost of Goods Sold 543,300

Gross Profit $366,700

c. Raw materials, ending $30,000

Work in process, ending $17,200

Finished goods, ending $21,000

Total inventory $68,200

d. The difference in the balance sheet and income statement of Aikman Company to Merchandising company is that, Aikman income statement consists of expenses arising from the manufacturing of goods that the merchandising company never incur. In addition to that, Aikman Company has ending inventory of Raw materials, work in process and finished goods while the other merchandising company only has ending inventory of good purchased not yet sold.

Explanation:

a. Aikman's statement of goods manufactured is presented below.

Aikman Company

Statement of Cost of Goods Manufactured

For the year ended December 31, 2022

Raw material, beginning 21,000

Add:Purchases 150,000

Raw materials available 171,000

Less: Raw material, end 30,000

Cost of raw material used 141,000

Add: Direct labor 220,000

Prime Cost 361,000

Add: Factory overhead 180,000

Manufacturing cost 541,000

Add: Work in process, beginning 13,500

Less: Work in process, Ending 17,200

Cost of Goods Manufactured 537,300

b. Income statement of Aikman starts from the sales revenue that the company incurs for the period and then deduct the cost of goods sold to arrive the gross profit.

c. Aikman's inventory balance consists of Raw materials, work in process and finished goods balances.

8 0

4 years ago

40 pts

Finger [1]

Answer:200

Explanation:

8 0

4 years ago

Read 2 more answers