Answer:
e) market risk premium.
Explanation:
The slope of the security market line represents the market risk premium.
Answer: $53.94
Explanation:
Current share price is the present value of the dividends for the next 3 years and the terminal value in year 3.
Terminal value = D₄ / ( required return - growth rate)
= (2.35 * 1.22³ * 1.05) / (12 % - 5%)
= $64
D₁ = 2.35 * 1.22 = $2.867
D₂ = 2.867 * 1.22 = $3.49774
D₃ = 3.49774 * 1.22 = $4.2672428
Share price = (2.867 / (1 + 12%)) + (3.49774 / 1.12²) + (4.2672428 / 1.12³) + (64/1.12³)
= $53.94
Guaranteeing future dividends is considered to be an unfair or deceptive act known as misrepresentation.
Misrepresentation is a false or misleading statement of fact made by one party to another party during a negotiation that misleads the other party into entering into a contract.
Misrepresentation means making a false or misleading statement or any other misleading statement with the intent to mislead. It's a serious omission. Misrepresentation is one component of common law fraud and one source of fraud, including: B. Securities Fraud.
Learn more about misrepresentation here:brainly.com/question/5792449
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Answer:
Explanation:
The adjusting entry is shown below:
On December 31
Supplies expense A/c Dr $6,660
To Supplies A/c $6,660
(Being supplies account is adjusted)
The supplies expense is computed by
= Supplies balance - supplies on hand
= $8,780 - $2,120
= $6,660
We simply debited the supplies expense account and credited the supplies account for $6,660
