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hoa [83]
3 years ago
7

You are considering acquiring a common share of Sahali Shopping Center Corporation that you would like to hold for 1 year. You e

xpect to receive both $1.70 in dividends and $30 from the sale of the share at the end of the year. The maximum price you would pay for a share today is __________ if you wanted to earn a 12% return.
Business
1 answer:
Artemon [7]3 years ago
3 0

Answer: $28.30

Explanation:

Given the following :

Expected Dividend = $1.70

Earning from share sale at year end = $30

Expected rate of return on investment = 12%

Maximum price of stock :

(Earning from share + expected Dividend) / (1 + return rate)

(30 + 1.70) / ( 1 + 12%)

(30 + 1.70) / (1 + 0.12)

(31.70) / (1.12)

= $28.303571

= $28.30

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In accounting for a contingent liability, if the likelihood of the obligation is probable but the amount cannot be estimated, a
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Answer: d. provide disclosure in the footnotes to the financial statements.

Explanation:

A contingent liability is an obligation that a company might owe in future depending on the outcome of an event such as a law suit.

To record a contingent liability in the books, two conditions must be satisfied;

  1. Loss must be probable
  2. Amount must be estimable

If these two conditions are not satisfied then the contingent liability may simply be disclosed as a footnote in the financial statement. The amount here is not estimable so can be disclosed as a footnote.

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3 years ago
By how many packs of cigarettes does quantity demanded decrease due to the excise tax on cigarettes?
andrezito [222]

Answer:

Explanation:

The government taxes packs of cigarettes both to discourage smoking and to raise tax revenue. The average excise tax on a pack of cigarettes is $2.50 per pack. The table below presents the annual demand and supply schedules, in billions of packs, both before and after the tax on packs of cigarettes.

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3 years ago
The mass marketing at the center of the undifferentiated approach to target marketing is the assumption that the customer segmen
Colt1911 [192]

Answer:

D. standardized marketing

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The mass marketing at the center of the undifferentiated approach to target marketing is the assumption that the customer segments across the world will accept the same product regardless of their cultural, behavioral, or socio-economic differences. This is also known as standardized marketing.

Standardized marketing can be definition as the use of global standardization, which refers to when a company uses the same marketing strategy for various countries without minding their difference in culture.

6 0
3 years ago
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In 2019, selected automobiles had an average cost of $12,000. the average cost of those same automobiles is now $13,200. what wa
maksim [4K]

The rate of increase for these automobiles between the two time periods is  10%

<h3>What is automobiles?</h3>

Automobile is the wheeled vehicle usually having four wheels and generally used for the transportation purposes. For example :- car, buses, trucks, bike etc.

In the above case, the average cost of the automobile is $12000 in 2009 but now it has increased to $ 13200. For the calculation of the increased rate of the auto mobile following formula is used as follows:-

Increased rate = (current value -Initial value )/current value * 100

                         =( $13,200 -  $12,000)/  $12,000 *100

                          =$1200/ 12000 *100

                          = 10%

                           

Therefore, the rate of the increase for these automobile between 2 periods is 10%.

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5 0
2 years ago
T. Wiley sells one-half of her partnership to L. Tims for $10,000 cash. The entry to record this transaction in the books of the
Mandarinka [93]

The entry to record this transaction in the books of the partnership will include a debit to T. Wiley, Capital.

How are profits and losses allocated to partners in a partnership?

The subsequent allocation of this profit or loss to each partner's capital accounts is done according to their respective percentages of ownership in the company. For instance, the allocation is a debit to the income summary account and a credit to each capital account if there is a profit in the income summary account.

<h3>Is the Wiley family still involved in the company?</h3>

The involvement of the Wiley family is ongoing, with sixth-generation members (and siblings) Peter Booth Wiley serving as the non-executive chairman of the board and Bradford Wiley II serving as a director and past chairman of the board, even though the company is run by an independent management team and Board of Directors.

<h3>How are profits and losses split in a partnership?</h3>

By definition, participants in a partnership split the gains and losses. The earnings and losses of partnerships are frequently divided evenly among the partners. The distribution will be proportionate to the partners' relative ownership shares if they are not equal.

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8 0
1 year ago
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