Answer:
$3.72
Explanation:
Francis incorporation stock has a required rate of return of 10.25%
The stock is sold at $87.50 per share
The growth rate is 6% per year
Therefore, the expected dividend can be calculated as follows
= Po(rs-g)
= $87.50(10.25%-6%)
= $87.50×4.25
= $3.72
Hence the expected year end dividend is $3.72
Suppose that in the country of Worthland, the productive resources are owned by the state and most economic decisions are made by its central government. This country has "planned economy".
<h3>What is planned economy?</h3>
An economic system where the components of the economy (such as labor, capital, and natural resources) are under the direction and regulation of the government in order to meet the goals of an all-encompassing economic development plan; contrast with free enterprise.
Some features of planned economy are-
- The government owns and controls all resources.
- Producer or consumer sovereignty do not exist.
- The pricing of products and services cannot be determined by market forces.
- The government's principal goal is to provide products and services to everyone, not to make a profit.
- As a result, the government decides what sorts of things and services will be created, how those goods and services will be made, and who will use them.
Characteristics of this economy include-
- governmental control of wages and pricing,
- limited property rights,
- government ownership of key businesses and industries, and
- robust black markets.
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Answer and Explanation:
The journal entries are shown below
On Dec. 31, 2018
Interest receivable $600
To Interest income $600
(Being accrued interest earned is recorded)
On Dec. 31, 2018
Interest income $2,400
To Retained earnings $2,400
(Being the closing of interest income is recorded)
On Jan. 31, 2019
Cash $900
To Interest receivable $600
To Interest income $300
(Being cash receipt of interest is recorded)
Answer: Enron
Explanation:
Enron scandal was an accounting scandal that involved Enron Corporation, which was an American energy company that was based in Houston, Texas.
Enron hid huge amount of trading losses, which led to its bankruptcy. The company used fraudulent accounting practices in order to inflate the revenue of the company and.hid the debt that the company incurred.
Answer: The journal entries to record the 2017 estimate for bad debts is Debit Bad debt expense $140; Credit Allowance for doubtful accounts $140.
Explanation: Given that the amount in accounts receivable is $2,000, after the collections, CC Sunglasses Co. estimates that 7% of this amount may not be collected. Therefore, 7% of $2,000 is $140. And the accounting entries to recognize this bad debt expense is as provided in the Answer section above. However, the net balance in the accounts receivable would be $1,860 ($2,000 - $140), to show the realizable value as at December 31, 2017.