Answer:
Current price = $20.50
Explanation:
Data provided in the question;
Growth rate, g = 20% = 0.2 for the 2 years
Growth rate, g' = 15% = 0.15 for the following 2 years
after 4 years annual dividend = $3
Last dividend paid, D0 = $1
Required rate of return, r = 12% = 0.12
Now,
D1 = D0 × (1 + g)
= $1 × (1 + 0.2)
= $1.2
D2 = $1 × (1 + 0.2)²
D3 = $1 × (1 + 0.2)² × (1 + 0.15)
D4 = $1 × (1 + 0.2)² × (1 + 0.15)²
D5 = 3
Therefore,
Current price = 
+ 
+ 
+ 
+ 
⇒ Current price = $20.50
Answer:
The correct answer is letter "B": Owning a share means you own a percentage of the company.
Explanation:
A share which is also called a stock is a <em>corporate or financial asset ownership unit</em>. Owning some shares in the business entitles the holder to a proportionate amount of the company's profits. Profits are called dividends when they are paid to shareholders.
Answer:
Huprey Co.
Identifying the accounting treatment for each claim as either (a) a liability that is recorded or (b) an item described in notes to its financial statements:
1. Huprey (defendant) estimates that a pending lawsuit could result in damages of $1,550,000; it is unlikely that the plaintiff will win the case.a. A liability that is recorded.
b. An item described in notes to its financial statements.
2. Huprey faces a loss on a pending lawsuit that it is unlikely to lose; the amount is reasonably estimable.
a. An item described in notes to its financial statements. b. A liability that is recorded.
3. Huprey faces a probable loss on a pending lawsuit; the amount is reasonably estimable.a. An item described in notes to its financial statements.
b. A liability that is recorded.
Explanation:
Huprey Co. will recognize and record contingent liabilities in its accounts when it can be reasonably established that the future event will occur and the amount of the liability can be reasonably estimated. The implication is that Huprey Co. must establish two things before a contingent liability is recognized and recorded. One is that the probability or the likelihood or the chance that the event will happen exists and can be estimated. With the probability estimate, it becomes possible for Huprey Co. to also estimate the amount that the happening of the event will cost it.
Answer:
maintaining functions such as employee compensation, recruitment, and personnel policies
Explanation:
Answer:
The answer is: C) There are two distinct performance obligations: the wireless service and the phone.
Explanation:
Performance obligation refers to a promise made by a company to deliver a good or service to a customer. A series of goods or services that are very similar and are transferred at the same time to a customer can be considered as one single performance obligation.
For example, the voice service and the data service are considered one single wireless service. But the cellphone is totally different so it has to be considered a separate performance obligation.
