Answer:
The answer is: False
Explanation:
a product can sell if the price is higher or lower than its perceived value, take a market crash for example, many stocks are priced lower than its perceived value but some investors still buy it, or overpriced stocks, people that believe the stock will continue to go up would most likely buy it.
Answer:
e) $23.89
Explanation:
The question is to determine the value of Canine Crates stock today based on a return rate of 13%
The first step is to determine the yearly value based on the dividend for three years as follows
D1= The annual dividend x 2 ( since Canine Crates plans to double the amount each year for three years
D1= $0.45 x 2 = $0.9
D2= $0.90 x 2 = $1.80
D3= $1.80 x 2 = $3.60
Based on these calculations, we calculate the value of the stock by adding the present values of the dividend of each year.
This is based on the following formula
Dividend per year / (1+r)∧n
= Dividend per year
r = required rate
n= period
Value of the stock = $0.9 / (1.13) + $1.80 / (1.13)∧2 + $3.60/ (1.13)∧3
The value of the stock = $23.89
Answer:
The answer is
A.
accepting mistakes and rectifying them
Explanation:
Answer:
The net investment in capital assets is increased by $7,000.
Explanation:
Details amount amount
equipment $230,000
Partial year-depreciation ($23,000)
Net value of the equipment $207,000
acquired load ($200,000)
increase in capital assets $7,000
Therefore, The net effect of this transaction on the net position accounts of the enterprise fund is, The net investment in capital assets is increased by $7,000.
Answer: $2,700,000
Explanation:
The debit to Cash in the journal entry to record this transaction will be calculated as:
= $3,000,000 - [($3,000,000 × 3%) + ($3000000 ×7%)]
= $3,000,000 - ($3,000,000 × 0.03) + ($3000000 × 0.07)
= $3,000,000 - [$90,000 + $210,000]
= $3,000,000 - $300,000
= $2,700,000
Therefore, the debit to cash will be $2,700,000.
