Answer:
A. $22.61
Explanation:
First,
find the growth rate(g);
g = ROE *retention rate
retention rate = 35%
ROE = Net income/value of equity
ROE = 800,000/5,000,000 = 0.16
Therefore, g = 0.16*0.35
g =0.056 or 5.6%
Price = 
D0 = Recently paid dividend
g = growth rate
r = required return
Price = 
Therefore, the value of this stock is $22.61
Answer: d. revenues to be understated.
If the services have been rendered but the revenue is not recorded it means that your accounts will show less revenue than you have actually earned as in accounting revenue is recognized as soon as the service is rendered, thus not recognizing the revenue when the service is rendered will understate the revenues.
Explanation:
It is the standard (IRS) form that individuals use to file their annual income tax returns
Answer: raise; reduce
Explanation:
A Supply shock is described as a situation where the supply of a good changes suddenly/ abruptly due to an unforeseen event.
Supply shocks can be positive but are usually negative so we will assume the supply shock is negative here.
If there is a negative supply shock, the amount of goods being produced will reduce abruptly which will force the supply curve to shift left.
It will then intercept the the demand curve at an equilibrium level that has a higher price and a lower quantity of output.
Think of it this way. Negative supply shock ⇒ less goods ⇒ scarcity ⇒ higher prices.
Answer and Explanation:
The computation of the current ratio and the acid ratio is shown below:
The current ratio is
= Current assets ÷ current liabilities
= ($96 + $88 + $176 + $12) ÷ ($86 + $29)
= $372 ÷ $115
= 3.23 times
And, the quick ratio is
= Quick assets ÷ current liabilities
= ($372 - $176) ÷ ($86 + $29)
= $196 ÷ $115
= 1.70 times
Hence, the current ratio and the acid-test ratio is 3.23 times and 1.70 times respectively
