<span>1. Which of the following is not characteristic of a corporation?
d. Corporations are required to file federal income tax returns.
2. Characteristics of a corporation include
d. Shareholders who have limited liability
3. One of the main disadvantages of the corporate form is the
b. Double taxation of dividends
4. Under the corporate form of business organization
a. Ownership rights are easily transferred.
5. Those most responsible for the major policy decisions of a corporation are the
b. Board of directors.
6. Stockholders' equity
d. Is shown on the income statement
7. The price at which a stock can be sold depends upon a number of factors. Which statement below is not one of those factors?
b. Investor expectations of the corporation's earning power
8. Which of the following accounts below is reported in the paid-in capital/stockholders' equity section of the corporate balance sheet?
b. Stock Dividends
9. The excess of issue price over par of common stock is termed a(n)
d. Premium
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Explanation:
Trade offs are something in which there are two things and we choose one of them according to our own preference or need. This is and should be our personal decision, but when Corporations and Governments decide on what to choose between two things, there would might be a negative impact on someone's life. He might feel controlled by the corporations and governments. For example, if corporations of CNG decides with the government that it is better for consumers to use CNG than Petrol in their cars, and lowers taxes on CNG and encourage consumers to shift towards CNG, then this trade off will have an impact of being controlled by the big giants. The choice should be of consumer's. The consumer should be the one who will trade off between things who are preferable for him.
Answer:
e) $37.05
Explanation:
Using the dividend growth model, the value of a stock is the present value of the future dividends receivable discounted at the required rate of return . The required rate of return is given as 12%.
So we discount the year 3 dividend using the dividend growth model formula
P = D (1+g)/r-g
r- rate of return, g = growth rate
Present value of the future dividends:
PV of Year 1 = 1.55(1.015)m × 1.12^(-1)
= 1.4047
PV of Year 2 = 1.55 (1.015)(1.015) × 1.12^(-2)
= 1.27
PV of Year 3 (this will be done in two steps)
Step 1; PV (in yr 2) of year 3 dividend
= (1.55)(1.015)^2×(1.08)/(0.12-0.08)
=43.114
Step 2 : PV (in yr 2) of year 3 dividend
=43.114 × (1.12^(-2))
= 34.37
Best estimate of stock = 1.40 + 1.27 +34.37
= $37.05
Note
To discount the year 3 dividend, we use two steps. The first stp helps get the PV in year 2, and step 3 helps to take it further to the PV in year 0
Answer:
Differentiation.
Explanation:
The concept of value for the customer corresponds to the expectation that the product will meet the needs, desires and features that he expects.
The customer's perception of the concept of value is affected in rational and irrational ways, such as brand image, product performance, high price, etc.
Therefore, when a company offers a product at a higher price, it is passing on to the consumer the higher production cost of an item, which has features that add greater value and functionality, such as differentiation, personalization or an unforgettable customer experience.
Differentiated products are those produced in a more heterogeneous way compared to standard products, therefore differentiated products have distinct characteristics that add greater value, such as new features, technology, design, durability, style, etc.