Answer:
$49.71
Explanation:
The computation of the willing to pay for the company stock is shown below:
= Next year dividend ÷ (Required rate of return - growth rate)
where,
Next year dividend is
= $2 + $2 × 4.4%
= $2 + 0.088
= $2.088
The required rate of return is 8.6% and the growth rate is 4.4%
So, the price of one share of the company stock is
= $2.088 ÷ (8.6% - 4.4%)
= $2.088 ÷ 4.2%
= $49.71
We simply applied the above formula
Answer:
The correct answer is shown below:
Explanation:
Cash discount is the discount, which is a deduction allowed or provided through sellers of the goods and services so that could motivate the customers or consumers to pay within the particular time period.
So, the statements which summarize are:
1. The sellers offer cash discount, will acknowledge as the sales discount.
2. The buyer refer or acknowledge the cash account as purchase account.
3. The cash accounts are defined as the credit terms.
4. The sellers could grant cash discount in order to encourage the buyers to pay earlier.
5. The payment which is reduced applies to the credit period.
This problem is solved by using the compound interest formula:
A=P(1+(I/period))^(number of periods)
Where A = amount accumulated and P = amount loaned and I = Interest
A = ? P = $2, 000, I = 0.115, Period = 2 (semi annually) Number of period = 2
*7 (I. e paid twice over a 7 yrs span)
So we have
A = 2000 ( 1 + 0.115/2)^(14)
A = 2000 ( 1 + 0.0575)^(14)
A = 2000 (1.0575)^(14)
A = 2000 (2.1873851765154) = 4374.77035
So we have 4374.80 to the nearest cent.
Answer:
An increase in aggregate demand in the economy will have what effect on macroeconomic equilibrium in the long run? A. The price level will rise, and the level of GDP will fall.
Answer:
see below
Explanation:
Operating expenses are the cost a business incurs while engaging in its normal business operations. They are the costs not directly be attached to the production process. A business incurs operating expenses in managing it day to day activities. They exclude one time expenses such as judgment cost, accounts adjustments, and other non-recurring costs.
Operating expenses are classified into administrative, selling, and general expenses. Businesses cannot avoid operating expenses; hence the management should strive to keep them as low as possible. Examples of operating expenses include rent, salaries, employee benefits, transport, depreciation, repairs, taxes, sales commissions, amortization, and pension contributions.
