An example of accepting liquidated damages is when valerie backed out of the deal and Kenneth kept the earnest deposit.
<h3>What is a
liquidated damages?</h3>
A liquidated damages refers to a pre-estimated probable loss that would be suffered from the late completion of a contract.
In conclusion, the example of accepting liquidated damages is when valerie backed out of the deal and Kenneth kept the earnest deposit.
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Answer:
B. The NFP is acting as an agent, receiving the contribution on behalf of another organization.
Explanation:
When the Not for profit organization acts as an intermediary then it would record the contribution it received from some organisation towards some different third organisation.
As the amount does not belong to Not for Profit organisation, and then it needs to further pay such amount to different party or organisation to which it belongs, and on behalf of which the Not for Profit organisation collected such amount.
Answer:
Internal cost.
Explanation:
The gasoline that a person used for his car is an example of an internal cost.
Internal costs are considered as a private costs which were incurred by the firms for the production of goods. It includes labor, depreciation, rents and inputs. These are the costs which is directly borne by a firm or an individual.
It is the direct cost associated with the firms for the production of goods and services.
Answer:
What is the value of the shareholders’ equity account for this firm?
14150
Explanation:
Current Assets 6000
Net fixed assets 25100
Assets 31100
Current Liabilities 4950
Long term debt 12000
16950
ASSET-LIBILITIES=EQUITY
31100-16950=EQUITY
EQUITY=14150
The expected share price after the third dividend is GH¢ 20.22
What is stock price?
The stock price can be determined as the present value of future dividends, years 1-3 and the present value of all dividends beyond year 3 which is known as the terminal value(i.e. the unknown selling price after the third dividend as required in this case)
The terminal value is the present value of future dividends after 3 years which needs to be discounted 3 years backward in the process of computing share price
Share price=12
Year 1 dividend=1
Year 2 dividend=2
Year 3 dividend=3
Terminal value=unknown (assume it is X)
discount rate=32%
Each future dividend can be discounted using the present value formula of a single cash flow shown below:
PV=FV/(1+r)^N
FV=each future cash flow/dividends
r=discount rate=32%
N=the year of dividends, 1 for year 1, 2 for year 2
12=1/(1+32%)^1+2/(1+32%)^2+3/(1+32%)^3+X/(1+32%)^3
12=3.20978378829618+X/(1+32%)^3
12-3.20978378829618=X/(1+32%)^3
(12-3.20978378829618)*(1+32%)^3=X
X=(12-3.20978378829618)*(1+32%)^3
X=GH¢ 20.22
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