Answer:
The value of the Share of Zeke after the new Expansion is $25.
Explanation:
As there was no growth in the dividend before change, Price of the share from a stable dividend payment can be calculated by following formula.
Price = Dividend / Required rate of return
As we have the share price and the dividend amount we need to calculate the required rate of return.
Required rate of return = Dividend / Price
Placing value in the formula
Required rate of return = $2.50 / $25.00 = 0.1 = 10%
After New Expansion
Dividend = $1.50
Growth rate = 4%
The share price can be calculated by the dividend growth formula, as follow
Price of share = Dividend / (Rate of return - growth rate)
Price of share = $1.50 / (10% - 4%)
Price of share = $1.50 / 6%
Price of share = $25
Answer:
Explanation:
(A) The preparation of the bank reconciliation statement on July 31, 2017 is presented in the spreadsheet. Kindly find the attachment below:
(B) The journal entries are shown below:
Cash A/c Dr $2,576
To Accounts receivable $,2576
(Being cash is collected)
Bank service charges expense A/c Dr $51
To Cash A/c $51
(Being bank service charges paid)
The correct answer is D. All of these.
Answer:
D. Debit to Accounts Receivable
Explanation:
Transaction of sale in Perpetual Inventory system will be recorded as follow:
Dr. Cr.
Account Receivable xxx
Sales xxx
Cost of Goods Sold xxx
Merchandise Inventory xxx
There is no entry to purchases, cost of goods sold is debited and inventory is credited. So, the only correct option which is dealt in above transactions.
Answer:
$10,904.84
Explanation:
According to the scenario, computation of the given data are as follow:-
Year Deposit amount ($) At 9% for 3 years Future value of deposits ($)
1 $1,500 (1.09)^3 = 1.295029 $1,942.54
2 $3,000 (1.09)^2 = 1.1881 $3,564.3
3 $2,200 (1.09)^1 = 1.09 $2,398
4 $3,000 1 $3,000
Total $10,904.84
Future value = cash flow × (1 + interest rate)^number of years
When the amount of $10,904.84 is available, I buy the car.