Answer:
Howdy Doody show in the 2018 income statement as income from this investment is $24225
Explanation:
given data
purchased = 15%
common stock = $58,000
net income 2018 = $15,000
net income 2019 = $58,000
dividend = $61,500
fair value = $73,000
to find out
How much Howdy Doody show in the 2018 income statement as income from this investment
solution
we know that net income to be reported as income by investment is the sum of income from dividend + unrealised gain
so here
unrealised gain = increase in value of stock that is
= $73,000 - $58,000 = $15000 .............1
and
income from dividend is = 15 % of $61,500
income from dividend = $9225 .................2
now add equation 1 and 2
Howdy doody show in 2018 income statement as income from this investment = Dividend revenue + Unrealized holding gain
income statement = $9225 + $15000
income statement = $24225
Answer:
The share is worth $5.68 today.
Explanation:
The current price of the stock can be calculated using the DDM or dividend discount model. The DDM values the stock based on the present value of the expected future dividends from the stock.
The following is the formula for the price of the stock today,
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + Terminal value / (1+r)^n
The terminal value is the cumulative value of all the future dividends calculated when the dividend growth becomes zero or constant. In case the dividend growth becomes constant, like in this case, the terminal value is calculated as follows,
Terminal value = Dn * (1+g) / r - g
Where,
- g is the Constant growth rate in dividends
So, the price of this stock today is,
P0 = 0.65 / (1+0.145) + 0.70 / (1+0.145)^2 + 0.75 / (1+0.145)^3 +
((0.75 * (1+0.02) / (0.145 - 0.02)) / (1+0.145)^3
P0 = $5.678 rounded off to $5.68
The savings account that would earn the least amount of money is the account that earns a simple interest monthly.
<h3>What does simple interest and compound interest mean?</h3>
Simple interest rate is the interest that is paid only on the principal portion of a loan. This means that the debtor does not pays interest on the interest rate already accrued. This differs from compound interest where the debt holder pays interest on the principal and the interest rate already accrued.
This means that an account that earns a compound interest would have a higher yield when compared with an account that earns a simple interest.
To learn more about compound interest, please check: brainly.com/question/26367706
The answer to this item is letter <em>C. PRICE ELASTIC. </em>
The price elastic demand as stated in this given corresponds to the increase or rise in the total revenue when the price is brought down or decreased. This is indicated by the PED (price elasticity of demand).
The total revenue is calculated by multiplying the total items, good, or services sold by the unit price. For the demand which is price elastic, the decrease in the price will cause a higher raise in the number of customer vying for the products and services.