Answer:
The answer is an affirmative YES. Peterson Accounting should have relied on the income statement and footnote information provided by Ms. Rivera's accountant because they provided additional information on valuation and also provided a uniform framework for rigorous assessment and evaluation of the assets.
Explanation:
However, reliance should not be automatic. It should be based on the assessment of the qualification of Ms. Rivera's accountant and the internal controls in place, which helped the preparation of the income statement.
The revenue is defined as the total income a business receives from selling a good or service to its customers. The cost is defined as the total expenses that are incurred in the production of goods or services by any individual or organisation.
Answer:
$1.56
Explanation:
Lets assume the dividend paid for year zero is $1. The growth for the first 3 years is 25% which is given in the question. Now we will find the value of the Projected dividend for year 2 using the compounding formula, as under:
The Projected dividend for year 1 = $1 * (1 + 25%)^ 2 years = $1.56
Answer: (1) Option (A) is correct.
(2) Option (A) is correct.
Explanation:
(1) Dumping refers to the term that is mostly used in the international trade. When a country exporting a certain commodity in the foreign country at a lower price than it will be sell in a domestic market, is known as dumping.
But according to the world trade organization it is legal unless the importing country will be able to show the negative effects on their domestic producers from the exporting country.
(2) An antidumping duty is a type of protectionist tariff that a foreign country uses to discriminate against imports because government of the foreign country believes that price is too below the fair market price.
Hence, country A export steel at a lower price to country B than it is in the domestic market of country A. So, country B alleged that country A dumping steel into country B.
That's why, the government of country B implemented an antidumping duty of 20% on the imports from country A.
Answer:
Yield to Maturity(YTM) = 3.47%
Explanation:
<em>The yield to maturity is the required rate of return (discount rate) that would equate the price of the bond and cash outflow expected from the bond. The yield on the bond can be determined as follows using the formula below: </em>
YTM = C + F-P/n) ÷ 1/2 (F+P)
YTM-Yield to maturity-
C- coupon
F- Face Value
P- Current Price
DATA
Coupon = coupon rate × Nominal value = 1,000 × 8%× 1/2=40(note we divide by 2 because interest is paid semi-annually)
n= 4×2 = 8 (note there 2 half months in a year)
Face Value = 1000
YM-?, C-40, Face Value - 1,000, P-103.75/100× 1000 = 1037.5
YM = (40 + (1000-1037)/8) ÷ ( 1/2× (1000 + 1037.5 ) ) =0.0347
YM = 0.0347
× 100 = 3.47%
Yield to Maturity = 3.47%