Answer:
The price of the stock today is $12.43
Explanation:
The price of the share today can be calculated using the DDM approach whereby discount the expected future cashflows by the required rate of return and calculating the perpetuity value or terminal value where the growth becomes zero.
The price of the Stock today is,
P0 = 0.28 * (1+1) / (1+0.115) + 0.28 * (1+1)² / (1+0.115)² + 0.28 * (1+1)³ / (1+0.115)³ + [(1.5 / 0.115) / (1+0.115)³]
P0 = $12.428 rounded off to $12.43
Craft corp. acquired all of the common stock of pitts co. in 2019. pitts maintained its incorporation. The Craft account balance that would vary ... are Investment in Pitts Co., Equity in Subsidiary Earnings, and Retained Earnings.
This is further explained below.
<h3>What are
Retained Earnings.?</h3>
Generally, The cumulative net income of a company that is held by the corporation at a given moment in time, such as at the conclusion of the fiscal quarter, is referred to as the company's retained earnings. Retained earnings may be seen in a corporation's balance sheet.
In conclusion, The Craft account balance that would vary between the equity method and the initial value method are Investment in Pitts Co., Equity in Subsidiary Earnings, and Retained Earnings.
Read more about Retained Earnings.
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Answer:
$288,000
Explanation:
Sum-of-the-years'-digits method provide for higher depreciation to be charged early in the life of the asset with lower depreciation in the later year.
Sum of digits = 5 + 4 + 3 +2 +1 = 15
2020
Depreciation = 5 / 15 x $480000
= $160,000
2021
Depreciation = 4 / 15 x $480000
= $128,000
therefore,
Accumulated depreciation = $160,000 + $128,000 = $288,000
thus
The accumulated depreciation on this machinery at March 31, 2021, should be $288,000.
Answer:
The answer is C. longer inventory sits on the firm's shelves
Explanation:
The Inventory turnover is the number of times inventory is sold or used during a given period of time.
The formula is:
cost of goods sold/average inventory.
A lower inventory turnover means weak sales(declining sales) and excess inventory remaining in the warehouse while a higher inventory turnover means it is taking a firm short time to sell its goods(inventory)