Answer:
The correct answer is
B) Items that require adjusting entries.
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Answer:
Price of stock- $26
Explanation:
<em>Using te dividend valuation model, the price of a stock is the present value of the future cash flows expected from the stock discounted at the required rate of return.</em>
Where a stock is expected to pay dividend growing at a specific rate, the price of the stock can be dertermined as follows:
Price = D(1+g)/(ke-g)
D -dividend payable now,
Ke-required rate of return,
g - growth rate in dividend
So we can work out the price as follows:
Price = 1.25( 1+0.04)/(0.09-0.04)
= $26
Price =$26
Answer:
C. Buddy System
Explanation:
As James has just joined CoraTech Systems, where he has been assigned to Paul and Natalie for sources of information about the company. Paul and Natalie introduce James to others at Coratech, give him an office tour, and assure him that they will meet him regularly for the first few weeks, to help him in the transition to the new company. In this scenario, Paul and Natalie are part of the CoraTech's buddy system. Buddy system is one of the important concepts used by HR managers where train and orientate new employees by assigning them someone from the workplace who has much working experience in order to get the new employee trained and familiar with the organization. This system motivates and encourages new employees to share their tools, technologies, knowledge and techniques gained from their previous job experience.
