Answer:
a. Cost of Equity is 4.50%
b. Cost of Equity is 15.55%
Explanation:
a.
The formula for price of a stock using the constant growth model of the DDM approach is,
P0 = D0 * (1+g) / r - g
Plugging in the available values,
62 = 0.3 * (1+0.04) / (r - 0.04)
62 * (r - 0.04) = 0.312
62r - 2.48 = 0.312
62r = 0.312 + 2.48
r = 2.792 / 62
r = 0.045 or 4.5%
b.
SML (r) = rRF + β * (rM - rRF)
Plugging in the values,
r = 0.045 + 1.3 * ( 0.13 - 0.045)
r = 0.1555 or 15.55%
Answer:
Formatting text invloves performing one or more tweak of a text, it could be making it bold, resizing it, italicizing it , underlining it, choosing a particlar text sytle and so on.
Answer:
A) Contra to the particular asset.
Explanation:
A valuation allowance account is a reserve or contra account against deferred tax assets based on the likelihood that those assets will not be realized.
For example, a common valuation allowance account is Allowance for Doubtful Accounts which is a contra asset account of Accounts Receviable.
The soft drink industry then had to create <u>market value</u> for this new product category. Read below about the concept of market value.
<h3>What is a Market Value?</h3>
Market value is the amount for which something can be sold on a given market. Market value is also used as interchangeably with open market value, fair value or fair market , although these terms have distinct definitions in different standards, and differ in some circumstances.
Therefore, the correct answer is market value.
learn more about market value: brainly.com/question/8084221
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Answer:
$2,400,000
Explanation:
According to the IFRS, all research costs are charged to expense account and therefore the $2,400,000 shows as an expense on the debit side in its income statement for the year
Development costs and legal and filing fees should be capitalized as the requirements of technological and commercial viability have been identified, as well as the capacity of the asset to produce probable future economic benefits. So these amount would not be considered
