Answer:
an externality
Explanation:
Externality -
It is the cost or the benefit received by the third party , is known as externality .
The third party does not have any control over the creation of the cost or the benefit .
The externality can be negative as well as positive and can arise from the production or consumption of the services and goods .
hence , the correct term fro the given statement is an externality .
Answer:
Market capitalization - $155.26
Stock price - $26.77
Explanation:
The computation of the market capitalization is shown below:
= last year dividend × (1 + growth rate) ÷ (cost of capital - growth rate)
= $5.18 billion × ( 1 + 7.9%) ÷ (11.5% - 7.9%)
= $5.58,922 billion ÷ 3.6%
= $155.26
And, the stock price would be
= Market capitalization ÷ outstanding shares
= $155.26 ÷ 5.8 billion
= $26.77
Answer:
May 20
No Entry
June 14
Dr. Dividends $255,000
Cr. Dividend Payable $255,000
July 14
Dr. Dividend Payable $255,000
Cr. Cash $255,000
July 31
Dr. Retained Earnings $255,000
Cr. Dividend $255,000
Explanation:
Dividend = $0.5 x 510,000 = $255,000
May 20
Dividend is declared, No entry is required
June 14
Dividend to be recorded on this date. As dividend is not paid yet so it will be recorded as payable and on the other hand dividend account is debited to make a contra capital account of dividend.
July 14
Dividend is paid as cash is paid so, it will be credited and the liability is reduced so, it will be debited.
July 31
At the end of the period we have to adjust the Dividend Contra capital account in retained earning to make the dividend account zero.
