Answer:
The answer is B. $66,000
Explanation:
What are the items under investing activities of cash flow? - Sale and purchase of long-term assets or non-current assets. Purchase is an outflow while sale is an inflow.
The book value of the sold equipment was $55,000 and gain was $11,000. Therefore the equipment was sold for:
$55,000 + $11,000
=$66,000.
So there was an inflow of $66,000.
The $11,000 gain will be shown under operating section of the cash flow.
Answer:
$59.36
Explanation:
Given that
Dividend per share = $1.30
Growth rate for next 3 years is 15%
Now
Dividend for year 1 is
= Dividend per share × (1 + growth rate)
= $1.30 × (1 + 0.15)
= $1.495
For dividend for year 2 is
= Dividend for year 1 × (1 + growth rate)
= $1.495 × (1 + 0.15)
= $1.719
For dividend for year 3 is
= Dividend for year 2 × (1 + growth rate)
= $1.719 × ( 1 + 0.15)
= $1.977
And,
Subsequent Growth rate = g2 = 5%
Now
Dividend for year 4 is
= Dividend for year 2 × (1 + g2)
= $1.977 × (1 + 0.05)
= $2.076
Now
As per Gordon's Growth Rate Model
Price at year 3 is
= Dividend for year 4 ÷ (required rate of return - g2)
= $2.076 ÷ (0.08 - 0.05)
= $69.2
So, Value of the Stock is
= Dividend for year 1 ÷ (1 + required rate of return ) + Dividend for year 2 ÷ (1 + required rate of return)^2 + Dividend for year 3 ÷ (1 + required rate of return)^3 + Price at year 3 ÷ (1 + required rate of return)^3
= $1.495 ÷ (1+0.08) + $1.719 ÷ (1+0.08)^2 + $1.977 ÷ (1+0.08)^3 + $69.2 (1 + 0.08)^3
= $59.36
Answer:
The assets and liabilities acquired in a consolidation process are recorded at their fair market value. If the price paid during the consolidation process is lower than the fair market value of the assets - liabilities, then an ordinary gain on bargain purchase is recognized for the difference.
Ethos, pathos, and logos are identified by Aristotle as the three critical elements of good communication. hope it helps. God bless!
FALSE
because hubert being a competitive firm, if it decreases the price of engine, demand increases and thus production increases. Therefore revenue also increases.
