Answer:
-9.92%
Explanation:
P₀ = Div₁ / (Re - g)
- Div₁ = next year's expected dividend = $1.12 x (1 - 11.5%) = $0.9912
- Re = cost of equity = ?
- P₀ = current stock price = $62.91
- g = dividend's growth rate = -11.5%
Re = (Div₁ / P₀) + g
Re = ($0.9912 / $62.91) - 11.5%
Re = 1.58% - 11.5% = -9.92%
Since the cost of equity or required rate of return cannot be negative, I suppose that investors are not worried about Abbott distributing dividends, instead, they prefer that the company reinvests earnings in new projects.
Repay loans so that the bank can get it reserves back up to the required level
Answer:Inventory on hand Balance at the end = $4620
Explanation:
The question is unclear with regards to the requirements. however having dealt with questions of this nature in the past, I will assume the question requires us to calculate the cost of inventory on hand.
Opening Inventory balance = 180 x $28 =$5040
Purchased inventory = 290 x $30 = $8700
Cash sale (330 x $44) = $14520
Purchase inventory (230 x 34 ) = $7820
Cash sale (55 x $44) = $2420
Inventory on hand Balance = 5040+ 8700 - 14520 + 7820 - 2420
Inventory on hand Balance at the end = 4620 = $4620
Answer:
The correct answer that fills the gaps are: constant
; increasing.
Explanation:
GDP per capita, income per capita or income per capita is an economic indicator that measures the relationship between the level of income of a country and its population. For this, the Gross Domestic Product (GDP) of said territory is divided by the number of inhabitants.
The use of per capita income as an indicator of wealth or economic stability of a territory makes sense because through its calculation national income is interrelated (through GDP in a specific period) and the inhabitants of this place.
The objective of GDP per capita is to obtain data that somehow shows the level of wealth or well-being of that territory at a given time. It is often used as a measure of comparison between different countries, to show differences in economic conditions.
Explanation:
The adjusting journal entry to record the given adjustment is shown below:
At the year-end
Insurance expense A/c Dr. A/c $800
To Prepaid Insurance A/c $800
(Being insurance expense is recorded)
The computation is given below:
= Prepayment done for 6 months insurance policy - expired insurance
= $1,200 - $400
= $800
