Answer:
The opportunity cost of the event $21.
Explanation:
Opportunity cost is the loss of alternative when someone chooses an alternative.
Number of Hours = 3 hours
Earning per hour = $7
Total opportunity cost = $7 x 3
Total opportunity cost = $21
As Max has to bear the loss of $21 earning when he goes to the event in the museum. So this is his opportunity cost.
Answer:
B. If both the current and accumulated E&P have deficit balances, a corporate distribution cannot be characterized as a dividend.
Explanation:
The statement written in the option B is correct.If both accumulated and current E&P have low balances,then we cannot corporate distribution as dividend rest of the options are false.Hence the answer is option B.
Answer:
Debit : Account Payable $1,600
Credit : Discount Received $32
Credit : Cash $1,568
Explanation:
The correct journal entry to record the payment on July 28 includes a Debit to Accounts Payable and Credit to Discount and Cash. Cash should be after returns and discount received.
Answer:
$60.87
Explanation:
You can solve this question using time value of money concept. Since this is a dividend paying stock, the recurring dividends are annuities, next year's price is the future value, total duration is 1 year. Use these to calculate the current price; PV
Total duration; N = 1
Interest rate per year ; I/Y = 15%
Future value; FV = 63
Recurring dividend payment; PMT = 7
then compute the present value; CPT PV = 60.87
Therefore, the intrinsic value of this stock is $60.87
I would say C is the correct answer.
