Answer:
The correct answer is that the valuation would decrease total assets and stockholders’ equity by $101.00
Explanation:
Item Cost Market price Impact
Quantity
1 220 $ 4.40 $ 4.60 no impact as cost is lower
2 130 $ 6.20 $ 6.00 ($6.20-$6.00)*
130=$26
3 100 $ 10.00 $ 9.25 ($10-$9.25)*100 =$75
4 25 $ 20.50 $ 25.00 No impact as cost is lower
The total reduction in the value of inventory as a result of adopting the lower of cost or market price valuation is $101 ($75+$26),hence decreases total assets by $101 and the stockholders' equity(retained earnings which is a component of stockholders' equity ) by the same amount
For a firm that sells a prestige product, the relationship between price and quantity demanded is a <u>positive direct relationship</u>.
<h3>Why is the relationship between demand and price of prestige products direct?</h3>
The relationship between the demand and price of prestige products is direct because prestige products tend to sell better at high prices than at low prices.
And when the quantity demanded increases, the price tends to increase.
An example of a prestige product is an old car.
Thus, for a firm that sells a prestige product, the relationship between price and quantity demanded is a <u>positive direct relationship</u>.
Learn more about the demand for prestige products at brainly.com/question/6374886
Answer:
<em>(D) among them the threat of a rival’s multibillion-dollar patent-infringement suit and the decline in sales of</em>
Explanation:
Simplified Meaning is: Several issues were heard by investors at the annual SHM.
Two problems were among those: a threat from the MDPI of a competitor and a decline in the sales of the strong microprocessor chip of the company.
Verbing modifier should amend the preceding clause and make much sense in relation to the preceding clause.
Modifies the problems here with the other options and does not suit well with the subjective "investors".
No one can write down a vision for your future, its your vision and future.
Answer:
$19.47
Explanation:
The computation of the price paid for share is shown below:
= Year second dividend ÷ (Required rate of return - growth rate)
where,
Next year dividend is
= $2.20 + $2.20 × 2.2%
= $2.20 + $0.0484
= $2.2484
In the year 2 , it is
= $2.2484 × 1.022
= $2.2978648
And, the required rate of return is 14%
Plus the growth rate is 2.2%
So, the price paid for the share is
= ( $2.2978648) ÷ (14% - 2.2%)
= $19.47
