Answer:
Investment revenue = $91,000
Explanation:
the journal entry to record the dividends received would be:
Dr Cash 31,500
Cr Investment in Tetter Co. 31,500
the journal entry to record the reporting of the net income:
Dr Investment in Tetter Co. 91,000
Cr Investment revenue 91,000
When a company uses the equity method, any dividends received will decrease the carrying value of the investment, while any net income reported will be considered investment revenue.
Answer:
$10.84
Explanation:
The computation of willing to pay today is shown below:
For this first we have to find out the present value that is shown below:
Year Dividend per share Present value Present value
interest factor @12%
1 $0.57 0.893 $0.509
2 $0.62 0.797 $0.494
3 $0.77 0.712 $0.548
4 $1.07 0.636 $0.681
Present value $2.232
Now the price for the fourth year is
= (Next year dividend) ÷ (Required rate of dividend - growth rate)
where,
Next year dividend = $1.07 + $1.07 × 3.8%
= $1.07 + 0.04066
= $1.11066
So, the price for the fourth year is
= ($1.11066) ÷ (12% - 3.8%)
= $13.545
Now the present value of fourth year dividend is
= $13.545 × 0.636
= $8.61
So the willing to pay today is
= $2.23 + $8.61
= $10.84
Answer:
B
Explanation:
By high school teachers, professors from 2 year colleges, and professors from 4 year colleges
C. decreases and supply does not change, when demand does not change and supply increases, and when demand increases and supply decreases simultaneously.