The way they will record the dividends if they use the fair value method vs. the equity method is A. They will report dividends as income under the fair value method but as a reduction in the investment under the equity method.
<h3>What is a Stock?</h3>
This refers to the shares of a company that denotes a certain ownership percentage for each buyer of the stock.
Hence, we can see that Williford Enterprises has purchased common stock from several companies and has classified them as long-term investments and option A best shows how they would record the dividends.
Read more about the fair value method here:
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Hello,
The answer is option A "a mission statement".
Reason:
The answer is option A because the mission statement pretty much tells the goals of the business. Its not option B because every executive summary must include funding's on its products (to show if they raised prices or sales). Its not option C because every businesses wants to grow in order to make more money (by making more stores). Its also not option D because every summary will have the information about the newest products and services for there business.
If you need anymore help feel free to asks me!
Hope this helps!
~Nonportrit
Answer:
The incorrect option about Prezi is option D) There is no way Prezis can be edited offline.
Explanation:
There is a way to edit Prezi offline. Once you have a paid subscription that allows you to download the Prezi app to your device, offline editing is automatically enabled.
Instead of opening your browser and going to Prezi.com, you run Prezi offline on your desktop or laptop. This lets you present and edit your prezis offline anytime, anywhere. If you need to make a quick change to your presentation, your can fire up your laptop and edit it even if you're not online.
Answer:
a) Growth rate of earnings
using the sustainable growth rate formula which is the maximum growth rate that a company can sustain without external financing:
Growth rate = ROE * (1 - retention rate)
= 15% * (1 - 40%)
= 15% * 60%
= 9%
(Retention rate = 2/5 * 100 = 40%)
b) Price of equity using dividend growth model:
P₀ = D₀ (1 + g) / (re – g)
D₀ = the current dividend (whether just paid or just about to be paid) = $3
g = the expected dividend future growth rate = from A above (9%)
re = the cost of equity = 12%
= 3 (1 + 0.09) / (0.12 - 0.09)
= $109
c) Price of equity
P₀ = D₀ (1 + g) / (re – g)
= 4 (1 + 0.09) / (0.12 - 0.09)
= $145.33
Explanation:
At the estimated growth rate of 9%, should DFB increase the dividend payout, the price of equity would amount to $145.33 which is higher than the previous price of $109, so DFB is advised to raise its dividend
