Is coca cola's water sustainability really a issue ?

The underlying assumption of the dividend discount model is that a stock is worth: A. the present value of the future dividends

labwork [276]

Answer:

A. the present value of the future dividends the company pays.

Explanation:

The net present value (NPV) of a project can be defined as the difference between present value of cash-inflow into a project and that of cash-outflow over a specific period of time. Thus, it is simply the value of all cash-flows for a project with respect to its life span.

The underlying assumption of the dividend discount model is that a stock is worth the present value of the future dividends the company pays.

Generally, all financial assets or securities can be securitized i.e turned into a tradable item that can be used to generate money for a potential investor or the owner of the financial asset.

For example, a mortgage backed security can be used as securitization.

8 0

3 years ago

Appropriation to retained earning is

jenyasd209 [6]

Are the sum of a company's profits, after dividendpayments, since the company's inception. They are also called earned surplus, retained capital, or accumulated earnings.

(EXAMPLE):

Let's assume Company XYZ has been around for five years. During this time, it reported the following net income:

Year 1: $10,000
Year 2: $5,000
Year 3: -$5,000
Year 4: $1,000
Year 5: -$3,000

Assuming Company XYZ paid no dividends during this time, XYZ's retained earnings equal the sum of its net profits since inception, or in this case, $8,000. In subsequent years, XYZ's retained earnings will change by the amount of each year's net income, less dividends.

The retained earnings statement summarizes changes in retained earnings for a fiscal period, and total retained earnings appear in the shareholders' equity portion of thebalance sheet. This means that every dollar of retained earnings means another dollar of shareholders' equity ornet worth.

A company's board of directors may apprompany's retained earnings when it want to restrict dividend distributions to shareholders. Appropriations are usually done at the board's discretion, although bondholders and other circumstances may contractually require the board to do so. Appropriations appear as a special account in the retained earnings section. When an appropriation is no longer needed, it is transferred back to retained earnings. Because retained earnings are not cash, a company mayfund appropriations by setting aside cash or marketable securities for the projects indicated in the appropriation.

Why its important

It is important to understand that retained earnings do not represent surplus cash or cash left over after the payment of dividends. Rather, retained earnings demonstrate what a company did with its profits.

3 0

4 years ago

Read 2 more answers

Matt tells Ron that the snow boots he is selling offer protection for temperatures of 20° below zero. Ron orders a pair for his

vampirchik [111]

Answer:

A) Breach, because the latter express warranty is valid.

Explanation:

Based on the scenario being described within the question it can be said that the result would be a breach. This is mainly due to the fact that the box stated that "will protect your feet in temperatures down to 30° below zero." and this is a valid express warranty that is being marketed by the company that created the product. Therefore since the temperature did not go below 30 and Ron still suffered frostbite then he can rightfully sue.

4 0

3 years ago

Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio. The partners have decided to liquidate their partnership. On the

BlackZzzverrR [31]

Answer:

a. Inventory is sold for $600,000.

gain on sale of inventory = $600,000 - $537,200 = $62,800

allocation of gain:

Kendra 1/2 x $62,800 = $31,400

Cogley 1/3 x $62,800 = $20,933

Mei 1/6 x $62,800 = $10,467

Dr Cash 600,000

Cr Inventory 537,200

Cr Gain on sale of inventory 62,800

Dr Gain on sale of inventory 62,800

Cr Kendra, capital 31,400

Cr Cogley, capital 20,933

Cr Mei, capital 10,467

Dr Accounts payable 245,500

Cr Cash 245,500

Dr Kendra, capital 124,400

Dr Cogley, capital 233,433

Dr Mei, capital 177,467

Cr Cash 535,300

b. Inventory is sold for $500,000.

loss on sale of inventory = $500,000 - $537,200 = -$37,200

allocation of loss:

Kendra 1/2 x $37,200 = $18,600

Cogley 1/3 x $37,200 = $12,400

Mei 1/6 x $37,200 = $6,200

Dr Cash 500,000

Dr Loss on sale of inventory 37,200

Cr Inventory 537,200

Dr Kendra, capital 18,600

Dr Cogley, capital 12,400

Dr Mei, capital 6,200

Dr Loss on sale of inventory 37,200

Dr Accounts payable 245,500

Cr Cash 245,500

Dr Kendra, capital 74,400

Dr Cogley, capital 200,100

Dr Mei, capital 160,800

Cr Cash 435,300

c. Inventory is sold for $320,000 and any partners with capital deficits pay in the amount of their deficits.

loss on sale of inventory = $320,000 - $537,200 = -$217,200

allocation of loss:

Kendra 1/2 x $217,200 = $108,600

Cogley 1/3 x $217,200 = $72,400

Mei 1/6 x $217,200 = $36,200

Dr Cash 320,000

Dr Loss on sale of inventory 217,200

Cr Inventory 537,200

Dr Kendra, capital 108,600

Dr Cogley, capital 72,400

Dr Mei, capital 36,200

Dr Loss on sale of inventory 217,200

Dr Cash 15,600

Cr Kendra, capital 15,600

Dr Accounts payable 245,500

Cr Cash 245,500

Dr Cogley, capital 140,100

Dr Mei, capital 130,800

Cr Cash 270,900

6 0

3 years ago

Which of the following is a variable cost for a company that makes bread?

sergeinik [125]

The variable cost for a company that makes bread is : Bread ingredients.

3 0

3 years ago