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Leona [35]
2 years ago
5

2 annual dividend on its common stock. The dividend is expected to increase at 6% per year indefinitely. If the required rate of

return is 16%, what is the stock's value?
Business
1 answer:
mixer [17]2 years ago
5 0

Solution:

Given,

R= 16%

g= 8%

Calculate stock value ,

D_{1}=D_{0} x (1+g) ;

D1= 2.16

P0= ( 2.16/0.16 )-0.08

P0= $27

A value stock is a lower price protection exchange that can otherwise be implied by the performance of the company.

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Chandler Co. has a loan that accrues interest at a rate of $28 a day. The company pays the interest once a quarter. What adjustm
prohojiy [21]

Answer:

The Adjustment Entry for accrual of Interest Expense will be as follows:

                                              Dr.       Cr.

Interest Expense                $840

Interest accrued Payable               $840

Explanation:

Interest per day = $28

Interest expense for the Month = $28 x 30 = $840

$840 of Interest expense will be accrued at the end of the month and it should be adjusted accordingly.

3 0
2 years ago
In an enterprise-class database system, business users interact directly with the DBMS, which directly accesses the database dat
nikklg [1K]

Answer:

False

Explanation:

In an enterprise-class database system, business users can not interact directly with the DBMS, which directly accesses the database data

7 0
3 years ago
For each of the following scenarios, identify the number of firms present, the type of product, and the appropriate market model
marshall27 [118]

Answer:

Number of Firms - many

Type of Product - differentiated

Market Model - monopolistic competition

Number of Firms - many  

Type of Product - standardised  

Market Model - perfect competition

Number of Firms - few  

Type of Product - standardised  

Market Model - oligopoly

Number of Firms - one

Type of Product - unique

Market Model - monopoly

Explanation:

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.   In the long run, firms earn zero economic profit.  If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.  

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.  

A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopoly has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.

An example of monopolistic competition are restaurants  

A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.

An example of a monopoly is a utility company

An Oligopoly is when there are few large firms operating in an industry. While, a monopoly is when there is only one firm operating in an industry.

Oligopolies are characterised by:

  • price setting firms  
  • profit maximisation
  • high barriers to entry or exit of firms
  • downward sloping demand curve

3 0
2 years ago
An import​ quota: A. Is always more costly to a country than an import tariff. B. Has the same effects on welfare as an import t
Ivahew [28]

Answer:

D. Generates rents that might go to foreigners.

Explanation:

An import quota is the trade restriction imposed by the government on the quantity of the particular commodity to be imported from another country. It protects domestic producers from foreign competition. Overseas goods are generally very cheap compared to locally produced goods, which can destroy a business from the market and can make foreign companies be the leader of the market, who can control the price and quality of the product. Therefore, it very helpful to the local producer in sustaining and generating profit in the market.

3 0
2 years ago
Sheridan Company has the following inventory data: July 1 Beginning inventory 36 units at $19 $684 7 Purchases 126 units at $20
Alexeev081 [22]

Answer:

$2436

Explanation:

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.

total goods sold = (total inventory purchased + beginning inventory) - 60

(36 + 126 + 18) - 60

180 - 60

= 120

the 120 units sold would be taken from the inventory purchased on the 22nd and 7

(18 x 22) + [(120 - 18) x 20]

396 + 2040 = 2436

7 0
2 years ago
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