Sometimes the economic goals of the us will _________________

Twenty years ago, your parents invested in Apple. As the years have gone by, the investment has grown. However, if Apple should

ELEN [110]

Answer:

your parents will only lose the value of their share

Explanation:

Based on the information provided within the question it can be said that if the Apple business were to declare bankruptcy then your parents will only lose the value of their share. That is because the shares are linked to the Apple company, meaning that if they declare bankruptcy the value of those shares will ultimately decrease to 0 and be worthless.

5 0

3 years ago

Read 2 more answers

• Company X is paying an annual dividend of $1.35 and has decided to pay the same amount forever. How much should you pay for th

dimaraw [331]

Answer:

Case 1

Price of share = $14.21

Case 2

Price of share = $44.17

Explanation:

Provided details,

We have the following,

Current dividend = $1.35

Growth rate = 0

Annual rate of return = 9.5%

Using dividend growth model value of share,

$\frac{D_1}{K_e - g} = P_0$

Where D1 = Dividend at year end

Ke = Cost of capital or expected return

P0 = price of share

g = growth rate

Thus P0 = $\frac{1.35}{0.095 - 0}$ = $14.21

In case 2, we have,

Dividend per share = $6.00 For a period of 9 years

Expected return = 11%

Growth rate = 0

Sale price at end of year 9 = $28

Present value annuity factor for 9 year @ 11%

= 5.537

Present value of Dividend = $6 $\times$ 5.537 = $33.22

Discounted value of $28 for 9 years = 0.391 {tex]\times[/tex] $28 = $10.95

As, the share will be sold after 9 years, the price will be discounted to current value.

Total present value of share = $44.17

Thus, current price = $44.17

Case 1

Price of share = $14.21

Case 2

Price of share = $44.17

5 0

3 years ago

On January 1, $300,000 of par value bonds with a carrying value of $310,000 is converted to 50,000 shares of $5 par value common

Fofino [41]

Answer:

Debit bonds payable $310000

Explanation:

Based on the information given The entry to record the conversion of the bonds will includes all of the following entries except Debit bonds payable $310000 reason been that we were told that On January 1, the par value bonds of $300,000 has with a carrying value of the amount of $310,000 which was converted to 50,000 shares of $5 par value common stock, which means that we are supposed to debit the amount, credit it to Equity/common stock.

4 0

3 years ago

Gates Co. purchased machinery on January 2, 2005, for $440,000. The straight-line method is used and useful life is estimated to

Charra [1.4K]

Answer:

b. $34,500

Explanation:

For computing the depreciation expense for 2011, first we have to do the following calculations which are shown below:

Depreciation expense under Straight-line method would be

= (Purchase value of machinery - residual value) ÷ (estimated useful life)

= ($440,000 - $40,000) ÷ (10 years)

= $400,000 ÷ 10 years

= $40,000

From January 2, 2005 to the beginning of 2011, it have 6 years so the accumulated depreciation would be

= $40,000 × 6 years

= $240,000

And, the book value would be

= Purchase value of machinery - accumulated depreciation

= $440,000 - $240,000

= $200,000

Now the depreciation expense for 2011 would be

= (Book value + spent amount - salvage value) ÷ (remaining life)

= ($200,000 + $96,000 - $20,000) ÷ (8 years)

= $276,000 ÷ 8 years

= $34,500

Total years is 14 and the accumulated depreciation year is 6 years so , the remaining year would be 8 years

8 0

3 years ago

Milliken Company paid $3.00 million to purchase stock in another company, $1.40 million to repurchase treasury shares, $1.50 mil

nordsb [41]

Answer:

Net cash flow from investing activities is -$7.46 million.

Explanation:

Cash Flow from Investing Activities refers to the section of the cash flow statement of an organisation that shows the amount that been utilized in or made from making investments durin a particular accounting period. Examples of investing activities are purchases and sales of investments, long-term assets like property, plant, and equipment, etc.

Net cash flow from investing activities for Milliken Company can be calculated as follows:

Milliken Company

Calculation of net cash flow from investing activities

Details Amount ($'million)

Purchase stock in another company (3.00)

Buy short-term investments (1.50)

Sold used equipment 0.84

Purchased new equipment (3.80)

Net cash flow from investing activities (7.46)

Therefore, net cash flow from investing activities is -$7.46 million.

8 0

3 years ago

Sometimes the economic goals of the us will __________________ with each other.