Answer:
Option D
Increased globalisation that moves the economy from manufacturing based economy to more service-based economy.
Explanation:
Option D
Increased globalisation that moves the economy from manufacturing based economy to more service-based economy.
As manufacturing will decrease, the number of jobs will decrease drastically because the number of industries will become small.
Answer
a) Gordon's Constant Growth model : P0 = D1 / (r-g)
r = 3% =0.03
, g= -7% = -0.07
, D0 = $5.1
D1 = D0*(1+g)
D1 = 5.1*(1-0.07)
D1 = $4.743
P0 = 4.743/(0.03- (-0.07))
P0 = 4.743/0.10
P0 = $47.43
So, Stock M should sell at a price of $47.43 today
b) Price 8 years from now
==> P8 = D9/(r-g)
P8 = D0*(1+g)^9/(r-g)
P8 = 5.1* (1-0.07)^9 / (0.03- (-0.07))
P8 = 5.1*0.52041108298 / (0.03- (-0.07))
P8 = 2.65410
P8 = $26.54
c) Investor may want to buy the stock today for the Dividends. If the dividends paid are high enough, the present value of the dividends is also high and may more than compensate the fall in stock price. This type of stocks work and give cash flows like a project where the initial cashflows are higher and later cashflows are less because of market factors.
Answer:
$20 million
Explanation:
The net of accumulated depreciation is the cost of the road minus accumulated depreciation till date.
Accumulated depreciation=yearly depreciation* 20 years
yearly depreciation=cost/useful life
cost is $30 million
useful life is 60 years
yearly depreciation=$30 million/60 years=$500,000 per yer
accumulated depreciation=$500,000*20=$10 millon
net of accumulated depreciation=$30 million-$10 million
net of accumulated depreciation=$20 million
As a result,option A is the correct answer
Answer:
The amount FVI should record is $ 617,200
Explanation:
The amount FVI should record as the cost of the land includes the initial purchase price ,broker's commission,title insurance ,miscellaneous closing costs as well as the cost of dismantling the old warehouse since all of these costs were incurred to bring the asset acquired to its present condition and location.
land purchase price $540,000
broker's commission $34,000
title insurance $2,400
miscellaneous closing costs $6,800
Cost of demolition $34,000
total costs $617,200