Answer:
We should pay $46.50 for this stock.
Explanation:
The stock value is the present value of all the future dividends associated with the stock.
Following is the working to calculate the stock value.
Dividend
Year Dividend
_1 ____$1.20
_2 ___ $1.44
_3 ___ $1.73
_4 ___ $2.07
Use following formula to calculate the present value of all the dividends
Present value of Dividend = Dividend value x ( 1 + Expected interest rate )^numbers of years
Now calculate the present value of al the dividends
Year __Working ___________________________ Present values
_1 ____$1.20 x ( 1 + 6% )^-1 ____________________ $1.132
_2 ___ $1.44 x ( 1 + 6% )^-2 ____________________ $1.282
_3 ___ $1.73 x ( 1 + 6% )^-3 ____________________ $1.453
_4 ___ $2.07 x ( 1 + 6% )^-4____________________ $1.640
_5 to onward ___ [$2.07 / ( 6% - 2% )] x ( 1 + 6% )^-4 _ $40.991
Total _____________________________________$46.498
We should pay $46.50 for this stock.
Answer: (1) 120,675
(2) 60,450
Explanation:
(1) Nominal GDP, year 2 ($) = Sum of (Year 2 price × Year 2 quantity)
= 150 × 4.50 + 1,200 × 100
= 675 + 120,000
= 120,675
(2) Real GDP, year 2 ($) = Sum of (Year 1 price x Year 2 quantity)
= 3 × 150 + 50 × 1200
= 450 + 60,000
= 60,450
Answer:
400; 800
Explanation:
Contribution:
Product X:
= Selling price - Variable cost
= 100 - 70
= 30,
Product Y:
= Selling price - Variable cost
= 80 - 40
= 40,
Product Z:
= Selling price - Variable cost
= 25 - 20
= 5
Machine hours required :
Product X:
= Machine time per unit × Monthly demand
= 3 × 300
= 900,
Product Y:
= Machine time per unit × Monthly demand
= 2 × 200
= 400,
Product Z:
= Machine time per unit × Monthly demand
= 1 × 500
= 500
Contribution per machine hour:
Product X = Contribution ÷ Machine time per unit
= 30 ÷ 3
= 10,
Product Y = Contribution ÷ Machine time per unit
= 40 ÷ 2
= 20,
Product Z = Contribution ÷ Machine time per unit
= 5 ÷ 1
= 5
It is highest for Y, so produce maximum amount of Y, then X and then Z
Y needs 400 hrs, we are left with 800 hours, so produce 800 hours of X.
Answer:
1. Reputation.
Apple and IBM are big companies which is why their reputation was able to survive the bribery charges. You are most likely not as big as either of these companies so if you are charged with bribery, your reputation might not be able to recover like theirs did.
It is always best to be associated with a good reputation. A good reputation gives you customers who will be loyal because they appreciate the integrity you have. You should not throw this away by bribing people.
2. Consequences.
It is because Apple and IBM are so big that they were able to settle the bribery charge with the Courts. Smaller companies or people that have lesser effects on the financial system might find that their punishments will be more severe to act as a deterrent.
Answer:
The correct answer is Any one of the five criteria specified by GAAP regarding accounting for leases.
Explanation:
According to the information in FAS 13, criteria for accounting for financial and operating leases must be followed, such that the asset must be recognized all the risks according to the property, considering the times of the lease and in other cases the future purchase options the which must be reasonably recorded. If these criteria are not met it should be classified as an operating lease.
