Answer:
First we need to use the ddm model when the growth rate is constant and find the price then,because the ddm model cannot be used when the growth rate is not constant and then discount it back to present value at 12% which is the required return.
Last dividend = $4
Dividend one year from now = 4*1.015=4.06
Dividend 2 years from now = 4.06*1.015=4.12
Growth rate 2 years from now = 8%
R= 12%
Price = D*(1+G)/(R-G)
=4.12*(1+1.08)/(0.12-0.08)=4.45/0.04= 111.26
Price of stock 2 years from now $111.26, now we need to discount it to the present value. 111.26/1.12^2=88.69
Best estimate = b. $89.87
Explanation:
Answer:
D
Explanation:
Property rights are the legal rights of ownership on which others are not allowed to infringe without paying compensation. There are various types of property rights. Asset properties include houses, cars and other physical belongings. Animals and other non-human companions are another type of property right. Lastly there are Intellectual Properties which include ideas, inventions or other designs that are usually patented.
Answer:
Bob has $7 dollars now.
Explanation:
b = Bob's original amount of money ($x$ dollars)
p = Pat's original amount of money
"If Pat gives Bob a dollar, Bob will have twice as many dollars as Pat."
b + 1 = 2(p-1)
b + 1 = 2p - 2
b = 2p - 2 - 1
b = 2p - 3
"If Bob g Pat a dollar instead, they both will have the same number of dollars."
p + 1 = b - 1
p = b - 1 - 1
p = b - 2
In the first equation replace p with (x-2)
b = 2(b-2) - 3
b = 2b - 4 - 3
b = 2b - 7
7 = 2b - b
7 = b
Hey there!
Once someone makes the commitment to start their own business, they're likely going to spend more time on the business than any job they currently have. So, option C is out. The commitment will also require a lot of Ben and Alison and many of their days (and nights) will be spent working on their business, meaning that B is also out. Also, success or good reviews are never guaranteed to people who start businesses, meaning that A is out, as well.
That leaves D, which makes sense, since they will not have to go through an employer that takes fees and taxes out of pay before giving them their paycheck. Besides required income taxes, they will earn all profits.
Hope this helped you out! :-)
Answer:
Explanation:
The journal entry is shown below:
Cash A/c Dr 3,936
To Accounts receivable A/c 3,936
(Being payment is received within the discount period)
The amount of cash received is shown below:
= Sales - returned goods - discount
= $5,000 - $900 - 4%
= 3,936
Since the cash is received so we debited the cash and credited the account receivable account
