Answer:
The value of its common stock is $29.41
Explanation:
As the Dividend payment is for indefinite period of time, This is the perpetuity payment. The value of share can be determined by calculating the present value of perpetuity payment.
The formula for the present value of perpetuity is as follow
Present value of perpetuity = Cash flow / Required Rate of return
In this case the present value of perpetuity is the value of stock cash flows is The dividend payment.
Value of Stock = Dividend / Required Rate of return
Value of Stock = $2.5 / 8.5%
Value of Stock = $29.41
Answer: C. interest expense will not be a constant dollar amount over the life of the bond.
Explanation:
When a bond is sold at a discount, the discount will have to be amortized over the life of the bond to ensure that it reaches par at maturity.
As a result, the interest expense will be based on a larger figure every year which would mean that it would have to be larger each time. t will therefore not be a constant dollar amount over the life of the bond.
Answer:
June 15
Dr. Account Receivable $24,000
Cr. Service Revenue $24,000
At the time of Receipt in July
Dr. Cash $24,000
Cr. Account Receivable $24,000
Explanation:
As the Services are performed on June 15, and Great Venture has a right to received the payment against the services provided. So, the revenue is recognized and The payment for the services has not been made yet. This result in the creation of account receivable, That is expected to receive in July.
In July the payment is received. The cash account will be debited as the cash is received and on the other hand account receivable will be credited to remove the due balance of $24,000 from receivables balance.
Based on the fact that this country is having a high rate of unemployment, then it is inside (below) its PPF.
<h3>What is the Production possibility frontier?</h3>
This is the graphical illustration that shows the way a nation produces goods and services based on the resources that it has available.
It shows the mix of goods that would efficient use the allocated resources. A country is at unemployment if they are inside the PPF.
Read more on the Production possibility frontier here:
brainly.com/question/6571859
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