Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Cash flows= $8,000
Grow at a rate of 4% per year indefinitely.
We need to find the present value using the following formula:
Present Value= periodic payment/ (i - g)
i= interest rate
g= growth rate
A) Interest rate= 15%
PV= 8,000/ (0.15 - 0.04)= $72,727.27
B) i= 13%
PV= 8,000/ (0.13 - 0.04)= $88,889
Answer: varying risk premium
Explanation: According to fama and French, risk premiums have a great effect on the Market. Therefore when the risk premium is varying with time it has diverse effect on the market and may result in market anomalies.
Answer:
The effect on earnings in the year after after the shares are granted to executives wpuld be that the earnings will be reduced by $80 million.
Explanation:
market price of common shares = $8 per share
number of common shares issued as RSUs = 30 million
total value of common shares issued as RSUs = 30 million*$8
= $240 million
the total compensation to executives is $240 million and the vesting period is 3 years.
Therefore, the total compensation should be expensed over a period of 3 years, this will reduce the earnings of the company by $80 million ($240 million/3) per year for 3 years.
Therefore, The effect on earnings in the year after after the shares are granted to executives wpuld be that the earnings will be reduced by $80 million.
Answer:
A. organization
Explanation:
a secretary writes the minutes during a meeting and also schedules the meetings for his boss therefore he/she must be organized for the work to be done efficiently.
Answer:
The entry to record the payment of attorneys fees by a way of share issue will be:
Dr Organization expense $5000
Cr Share capital $3000
Cr Share premium $2000
Explanation:
Firstly, the fees payable to the attorneys is $5000,hence organization expense is debited with $5000.
However, the value of the shares given is 300*$10 i.e $3000,as a result, the attorneys have indirectly paid $2000 more for the shares, the excess is recorded in paid in share capital in excess of par value account or a share premium account.
The rationale for the entries is that expense account takes debit when it increases and capital account a credit.
