Answer:
Using the cost method means that the stock is recorded at the price it cost to buy it back.
Journal entry is therefore:
Date Account Title Debit Credit
Aug 1, 2014 Treasury Stock $72,000
Cash $72,000
<u>Working:</u>
= 4,000 shares * 18
= $72,000
Answer:
The price per share of this stock is $13.20
Explanation:
Using the dividend discount model, we can calculate the price per share today of this stock. The DDM values a stock based on the present value of the expected future dividends of the stock discounted using the required rate of return on the stock. The price o=per share today for this stock is,
P0 = 0.18 * (1+1) / (1+0.1024) + 0.18 * (1+1)^2 / (1+0.1024)^2 +
0.18 * (1+1)^3 / (1+0.1024)^3 + 1.25 / (1+0.1024)^4 + 1.25 / (1+0.1024)^5 +
(1.60 / 0.1024) / (1+0.1024)^5
P0 = $13.20
Answer:
the minimum down payment that Mark can make is $1,650
Explanation:
The computation of the minimum down payment that Mark can make is given below:
Purchase price $21,000
Less: Trade In -$4,500
Net price $16,500
So, the down payment needed should be
= 10% of $16,500
= $1,650
Hence, the minimum down payment that Mark can make is $1,650
Answer:
Stageable
Explanation:
In a play, stageable is something that is capable of or suitable for being staged. A play that cannot be stage is unstageable. The best way in which a playwright to adapt source work for the stage is to rework it's material to enhance is stageability. Respecting the demands of the performance like doing the necessary things for a play to come out fine is also a way of making a play stageable.
Answer:
B) 1. and 2.
Explanation:
Both variable costing and absorption costing are affected by fixed costs (both manufacturing overhead and administrative overhead) and contribution margin per unit.
Cost absorption costs are also affected by production levels and the denominator level chosen to set the fixed manufacturing cost rate.
