Answer:
their total wealth
-their future expenditure needs
-the risk on the security
Explanation:
Financial System
This simply are markets and various financial units or intermediaries that help transfer financial assets, real assets, and financial risks in various forms from one person to another, from one place to another, and from one point to another
3 Main functions of the Financial System
1.) The achievement of the purposes for which people use the financial system
2.) The discovery of the rates of return that equate aggregate savings with aggregate borrowings
3.) The allocation of capital to the best uses
An investment
This is simply defined as the current commitment of current resources in the hope of getting greater resources in the future. It reduces current consumption in hopes of greater future consumptions. When making investment, different actions are considered before decision making.
Answer:
Price of stock- $26
Explanation:
<em>Using te dividend valuation model, the price of a stock is the present value of the future cash flows expected from the stock discounted at the required rate of return.</em>
Where a stock is expected to pay dividend growing at a specific rate, the price of the stock can be dertermined as follows:
Price = D(1+g)/(ke-g)
D -dividend payable now,
Ke-required rate of return,
g - growth rate in dividend
So we can work out the price as follows:
Price = 1.25( 1+0.04)/(0.09-0.04)
= $26
Price =$26
Answer:
$42,000
Explanation:
Deferred tax liability can be defined as the tax liability which has been due for the current period but has not yet been paid such as installment sales receivable.
Insurance expense of $210,000
Tax rate of 20%
( $210,000 × .20 )
=$42,000
Therefore the amount of the deferred tax liability at the end of 2021 will be $42,000
Answer:
d
Explanation:
this is where the product is marketed and continues to pick up customers who will use the product repeatedly and refer others for its usage
Answer:
Void
Explanation:
As long as the seller made a counter offer, this counter offer made by the seller automatically leads to the rejection of the original offer from the buyer. In this light, as long as the original contract has been rejected by the seller, it is impossible for the seller to then change his mind and make a decision to accepting the original contract because at this point, the contract is void.
