Answer:
If the required rate of return is 14 percent, the price I am willing to pay is 11.113
Explanation:
To calculate what you are willing to pay today to purchase stock in this company if your required rate of return is 14 percent, you have to use the following formula.
Po = D1 / (k-g)
Po = purchase price
D1 = Dividend in paid in next year
k = required rate of return
g= growth rate
Po = (3.30 (1-0.121)) / (0.14-(-0.121))
Po = 2.9007/ 0.261
Po= 11.113.
it would be a as a team I hope this helps
The correct answer to this question is this one: "C. Finance Charge." <span>Collectively, the interest costs and other fees for using a credit card called the finance charge. IT has something to do with the charges after you used the credit cards.</span>
Answer:
The journal entry for the issuance of the common stock is shown below:
Explanation:
Cash A/c.............................................Dr $33,000
Common Stock A/c........................Cr $30
Paid in Capital A/c...........................Cr $32,970
Working Notes:
Cash = Number of shares × Issue Price
= 3,000 × $11
= $33,000
Common Stock = Number of Shares × Par Value
= 3,000 × $0.01
= $30
Paid in Capital = Cash - Common stock
= $33,000 - 30
= $32,970
