Answer:
B. 4 years
Explanation:
As per the certain life income period, the guaranteed payments for the recipient lifetime or the specified time duration whichever is more.
Now if the recipient dies before the certain period ended, so the payments would be continued to the other beneficiary unless there is an end for the certain period
So, in the given situation, the payments would be received for
= 10 years - 6 years
= 4 years
Hence, the correct option is B. 4 years
Answer: $3.46
Explanation:
Given the following :
Current share price (P0) = $90 per share
Required return on stock= 8%
total return on the stock is evenly divided between a capital gains yield and a dividend yield ;
Therefore, Required return on stock= 8% ;
4% capital gain yield + 4% Dividend yield = 8%
Growth rate = 4% = 4/ 100 = 0.04
D1 = D0(1 + g)
D1 = value of next year's Dividend
D0 = current Dividend yield
g = Constant growth rate
D1 = current stock price * g
D1 = 90 * 0.04 = 3.6
D1 = D0(1 + g)
D0 = D1 / (1+g)
D0 = 3.6 / (1+ 0.04)
D0 = 3.6 / 1.04
D0 = $3.46
<span>The two basic sources of stockholders' equity are paid-in capital and retained earnings. Stockholders' equity is represented by the equity stake that is held on the books by a firm's equity investors. Paid-in capital is the amount of money (capital) that is paid in by the </span>investors when common or preferred stock being issued. Retained earnings are shown as a percentage of the net earnings that are not paid out as dividends but kept in the corny to be reinvested.
Answer: The correct answer is "A. A only".
Explanation: First-in, first-out (FIFO) process costing first transfers out the costs in beginning inventory because the oldest units are the first to leave (First in - First out).
And it does not require an additional step in cost allocation to units transferred out and the final Work-in-Process inventory.
