Answer:
B) debit Retained Earnings $ 200,000 and credit Common Stock $ 200,000
Explanation:
The dividends will increase the common stock account and decrease retained earnings. Dividends are always paid with retained earnings.
Since this is a large stock dividend (40% of new stocks are going to be issued), the transaction must be recorded at par value.
The total dividends declared = 50,000 shares x $10 x 40% = $200,000
The journal entry should be:
Dr Retained earnings 200,000
Cr Common stock 200,000
Answer:
B
Explanation:
Outsiders who were once employees
Because they have the inside information. And if your up to any tricks, they'll know! And you'll basically be at their liberty.
I'd say 2,487 because if you take 2,700 gallons ÷ $3.80= 710.5263157895 and then take 710.5263157895 and multiple is by $3.50
Answer:
B
Explanation:
Let analyse the answer option one by one:
A. False
Recalling the dividen discounted model (DDM):
<em>Current stock price = Next year dividend/(Required rate of return - Dividend growth rate) </em>
Transform the formula a bit we have:
<em>Next year dividend/Current stock price = Required rate of return - Dividend growth rate </em><em>or</em>
<em>Dividend yield = Required rate of return - Dividend growth rate = 12% - 5% = 7%.</em>
B. True
C. False
Stock price is the present value of all expected future dividends, discounted <u>at cost of equity</u>.
D. False
The constant growth model <u>can be</u> used for a zero growth stock, where the dividend is expected to remain constant over time. In this case:
<em>Current stock price = Dividend/Required rate of return</em>
E. False
This model is suitable for mature firm with stable earning growth.
Answer:
b. useful analytical measures.
Explanation:
All of the financial measures described in the question are all useful analytical measures used in many big companies. The more tools a company can use for their analytics the better and more accurate the results will be. Better and more accurate results then lead to better decisions on what direction to take the company.
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