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ohaa [14]
3 years ago
15

Riverside Motors is expected to pay an annual dividend next year of $3.10 a share. Dividends are expected to increase by 1.85 pe

rcent annually. What is one share of this stock worth at a required rate of return of 15 percent
Business
1 answer:
Vilka [71]3 years ago
7 0

Answer: $23.57

Explanation:

We are going to use growth dividend discount model to solve the question where Do = Div/r - g

where Po = stock price

Div = Estimated dividend for following period

r = required rae of return

g = growth rate

Po = 3.10/0.15 - 0.0185

= $23.57

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You have a credit card bill from ABC Credit for a total of $3,754. Please group the transactions within the appropriate T-Accoun
algol13

The T-Account can be made as follows with the credit of $3,754. The expenses are deducted from the balance as the total credit available.

<h3 /><h3>What is Expense?</h3>

Expenses are the costs that are paid by businesses, these costs are incurred for the operations of business. The expenses are paid from the cash/ bank balance available at the business.

It is recommended that the expenses are in a control and are lower than the revenue generated by the business.

T-Account

Operating Expense Account

$420

$250

$100

$250

Petty Expenses Account

$150

$100

Asset Account

$1500

$650

$334

The account are made according to the nature of expenses, there are two expenses that are not to be classified as an expense instead they need to be treated as a capital expenditure that is to be posted in Asset account.

Expenses with one off event and small amount and in general in nature are posted in petty expenses

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4 0
2 years ago
Forms of Business Organization
chubhunter [2.5K]

Answer:

<h2>Forms of Business Organization </h2>

1. The basic concepts of financial management are the same for all businesses, regardless of how they are organized. However, a firm's legal structure affects its operations.

The main forms of business organizations are: (1) proprietorships, (2) partnerships, (3) corporations, and (4) limited liability companies (LLCs) and limited liability partnerships (LLPs). In terms of numbers, most businesses are______proprietorships_. However, based on the dollar value of sales, most business is done by_corporations____.

Businesses are frequently started as__Limited Liability Companies____and then converted to_Corporations_____when their growth results in disadvantages outweighing advantages.

2. A proprietorship has three important advantages: (1) It is easily and inexpensively formed, (2) it is subject to_less____government regulations, and (3) it is subject to lower income taxes than are_corporations_____.

However, a proprietorship also has three important limitations: (1) A proprietor has_unlimited_____personal liability for the business' debts. (2) The life of the business is limited to the life of the individual who created it. (3) A proprietorship has difficulty obtaining large sums of capital so proprietorships are used primarily for small businesses.

3. A partnership has two important advantages: (1) It is easily and inexpensively formed and (2) its income is allocated on a pro rate basis to partners and taxed on a(n)_individual____basis so the partnership avoids higher_corporate____income taxes. A partnership has four important disadvantages: (1)_Unlimited_____personal liability, (2)_Limited____life, (3) difficulty of transferring ownership, and (4) difficulty of raising large amounts of capital.

4. A corporation has the following advantages: (1)_Unlimited____life, (2) ownership that is easily transferred through the exchange of stock, (3)_Limited____liability, and (4) can_easily_____raise large amounts of capital to operate large businesses. Its disadvantages are: (1) Corporate earnings may be subject to_corporate_____taxation and (2) setting up a corporation and filing required state and federal reports is complex. Large corporations are known as C corporations. However, as an aid to small businesses Congress created S corporations.

5. Limited liability corporations (LLCs) and limited liability partnerships (LLPs) have limited liability protection like_corporations_____but are taxed like__proprietorships____. Investors in an LLC or LLP have votes in proportion to their ownership interest. LLCs and LLPs have been gaining in popularity, but large companies still find it advantageous to be_formed into_____corporations because of advantages in raising capital for growth.

Explanation:

The above are forms of business organization through which investors can realize their investment dreams.

6 0
3 years ago
Exercise 4-11 Computing net sales for multiple-step income statement LO P4 A company reports the following sales-related informa
dezoksy [38]

Answer:

Net sales revenue= 220,100

Explanation:

Giving the following information:

Sales, gross $ 245,000

Sales returns and allowances $ 20,000

Sales discounts 4,900

Sales salaries expense 10,900

<u>Sales salaries expense is not a part of the net sales in a multiple-step income statement. The net sales are as follow:</u>

Sales= 245,000

Sales returns and allowances=  (20,000)

Sales discounts= (4,900)

Net sales revenue= 220,100

4 0
3 years ago
In the current year, Borden Corporation had sales of $2,190,000 and cost of goods sold of $1,295,000. Borden expects returns in
NNADVOKAT [17]

Answer:

The entries are as follows

To record estimated returns on Sales

Debit: Sales Refund Payable Account $131,400

Credit: Accounts Receivables $131,400

To record estimated Cost of Sales returns

Debit: Inventory Returns Estimated Account $77,700

Credit: Inventory on Sales on Returns $77,700

Explanation:

To derive the figure for Sales Refund payable for the year

6% of $2,190,000

= \frac{6}{100} * 2,190,000 = $131,400

To derive the figure for Inventory cost on Sales Refund payable for the year

6% of $1,295,000

= \frac{6}{100} * 1,295,000 = $77,700

3 0
3 years ago
As the marketing manager of BargainSmartphones, you're so committed to offering the best bargains that you're willing to show ot
Mekhanik [1.2K]

Answer:

personalization.

Explanation:

Based on the information provided within the question it can be said that the one thing that your website does not offer is personalization. This refers to allowing your customers to choose the parts of the product that they want and the ones they do not in order to create and order a version of the product that fits their needs. Which, as a phone manufacturer you cannot do since phone models are fixed products that do not have swappable parts.

7 0
3 years ago
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