Answer: Direct imitation or Substitution
Explanation: When a Firm enjoys competitive advantage it attracts significant attention from its competitors. the competitors attempt to take over this resource advantage in order to negate the firms resource advantage. This can be done in two ways, either by imitating the resource in which the firm has a competitive advantage ( <u><em>direct imitation)</em></u> or by substituting the firms product by providing a similar product or service referred to as <em><u>substitution</u></em>.
Debit to "Accounts Payable to Smith"
and Credit to "Inventory" account
A debit in an expense account is a decrease in the amount owed. Since you are returning inventory and getting the money back, you owe less.
You credit inventory because you are taking away from it by returning the goods.
Answer:
Your stock will be valued in $20,838.
Explanation:
If there are no taxes, it is expected that the value of the stock will lower the amount of the dividend. That means
Stock price (April 19) = stock price - dividend = 93-2.4=90.6 $/share
In this case, your stock of 230 shares will be valued as
Stock value = Stock share * stock price = 230 shares * $90.6/share
Stock value = $ 20,838
Your stock will be valued in $20,838.
Answer:
15.8%.
Explanation:
Calculation for XYZ's cost of equity using the CAPM
Using this formula
Cost of equity = Rrf + βi[E(Rm) - Rrf]
Let plug in the formula
Cost of equity= 6% + 1.06×[15.25% - 6%]
Cost of equity= 6% + 1.06×9.25%
Cost of equity= 15.8%
Therefore the Cost of equity will be 15.8%
