Answer:
c. $30.50
Explanation:
As rightly said, the current stock price is the present value of a dividend in one year and the expected price at the end of the year discounted at the equity cost of capital which is 12% in this case
current share price=D1+P1/(1+cost of equity)^n
current share price=$30
D1=$3.10(dividend expected in one year)
P1=unknown(price in one year)
cost of equity=12%
n=investmet time horizon=1 year
$30=$3.10+P1/(1+12%)^1
$30*(1+12%)=$3.10+P1
$33.60=$3.10+P1
P1=$33.60-$3.10
P1=$30.50
Answer: $240,000
Explanation:
An intangible asset is an asset which lacks physical substance. While physical assets include assets like buildings, machinery and financial assets like government securities, the intangible assets are hard to evaluate and they include copyrights, patents, trademarks, franchises, goodwill, and trade names.
From the information provided in the equation, copyrights is $240,000 which is an intangible asset. Therefore, in Randolph's balance sheet, intangible asset should be written as $240,000.
Answer:
the principal-agent problem
Explanation:
In the case when there is a tied of the top corporate managers salary with the price of the corporation stock so here the corporation should avoid the principal agent problem as it deals with the conflict with respect to the priorities that lies between the person and the representative.
So the above should be the answer
Answer:
Explanation:
Income Statement
$
Revenue 32,800
Expenses <u> (14,600) </u>
Profit <u> 18,200 </u>
Statement of changes in stockholders’ equity
Retained Earnings :
Profit for the year 18,200
Cash dividend paid <u>(2,900 )</u>
Retained earnings as at 31/12/18 <u> 15,300 </u>
Balance sheet
Current Asset :
Cash Balance ( 32,800-2900) 29,900
Stockholders' Equity :
Retained earnings 15,300
Answer:
100,000 shares and 80,000 shares
Explanation:
Calculation to determine how many shares were issued and outstanding, respectively
The shares that were issued will be 100,000 shares that were sold to the company's founders while the shares outstanding will be 80,000 shares Calculated as :
Shares outstanding=Shares issued -Shares repurchased
Shares outstanding=100,000 shares-80,000 shares
Shares outstanding =80,000 shares
Therefore the Number of shares that were issued and outstanding, respectively are:100,000 shares and 80,000 shares
