Answer:
d. $2(1.10)/[0.15-0.10]
Explanation:
The formula to compute the today value of the stock by using the Gordon model is shown below:
= Next year dividend ÷ (Required rate of return - growth rate)
where,
Next year dividend is
= $2 + $2 × 10%
= $2 + 0.2
= $2.2
And, the required rate of return is 15%
Plus the growth rate of return is 10%
So, the today value of the stock is
= $2.2 ÷ (15% - 10%
= $44
Answer and Explanation:
The Preparation of income statement is prepared below:-
<u>Rushmore Biking Inc.
</u>
<u>Income statement
</u>
<u>For the month ended February 28
</u>
<u>Particulars Amount</u>
Revenues $7,30,300
Less: Cost of goods sold $4,41,400
Gross profit $2,88,900
Selling and administrative expenses:
Selling expenses $1,48,500
Administrative expenses $72,200
Less: Total Selling and administrative
expenses $2,20,700
<u>Income from operations $68,200</u>
Answer:
C) $118,000
Explanation:
ABC International will have to pay the following interests:
- for the first three month period:
$4,000,000 x (5.5% + 0.65%) x 1/4 = $61,500
- for the second three month period:
$4,000,000 x (5% + 0.65%) x 1/4 = $56,500
total interest for the 6 month period = $61,500 + $56,500 = $118,000
Answer:
C. Estimated warranty payable for $26,500.
Explanation:
The monthly sales are $530,000 and the warranty costs are 5% of monthly sales,
Therefore, Warranty costs will be = $530,000*5% = $26,500.
Now, we know that no defective products were returned during the current month, hence the other options in the questions are discarded and Estimated warranty payable is taken at the month end.
Thank buddy.
Good luck and Cheers.
