Your business unit has been competing vigorously with another company for years. Your co-worker Gia recently worked for that com
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Answer:
Dividend yield for W = 5%
Dividend yield for X = 15%
Dividend yield for Y = 20%
Dividend yield for Z = 4.6%
Explanation:
For a constant growth stock
If r is made subject of formula; r= = div yield + growth rate
For Stock W, given r = 15% and g= 10%; dividend yield = 15%-10%=5%
For Stock X, given r = 15% and g= 0%; dividend yield = 15%-0%=15%
For Stock Y, given r = 15% and g= -5%; dividend yield = 15%-(-5)%=20%
For Stock Z, the price of the stock today is calculated as follows:
Price of the stock today = .
where P2=
Price of the stock today = =109.57
Therefore dividend yield = =
4.6%
Answer:
Date Account title Debit Credit
12/31/2019 Lease Receivable $175,934
Cost of Goods sold $120,000
Sales Revenue $175,934
Inventory $120,000
Date Account title Debit Credit
12/31/2019 Cash $40,800
Deposit Liability $40,800
The rental amount is constant and is made on the first day of the lease period so this is an annuity due.
As the collectability is probable, you need to find the present value of this lease:
= 40,800 * Present value of annuity due factor, 5 year, 8%
= 40,800 * 4.3121
= $175,933.68
= $175,934
