Answer:
B. Although you can hire someone to keep your books, you'll still need to know how to read, understand, and interpret basic accounting reports in order to make good business decisions
Explanation:
You may employ someone to manage the accounts, but you do need to know how to read, understand, and interpret simple reports of accounting to make sound business decisions, as well as understanding whether someone is committing fraud with you. A simple knowledge can help with all of this.
The smooth operation of a company is practically impossible without being able to interpret, comprehend and evaluate accounting reports and financial statements.
Therefore according to the given situation, the correct answer is b
Answer:
Maximum price = $43.50
Explanation:
<em>According to the dividend valuation model , the current price of a stock is the present value of the expected future dividends discounted at the required rate of return </em>
This principle can be applied as follows:
The value of cash flow the stock today is the present value of the future cash flow discounted at the required rate of return
The Di
P= D/ke
P= price of the stock today,- ?
D- annual dividend- 6.20
Ke- Cost of equity-14.25%
Price = 6.20/0/14.25=43.50
Maximum price = $43.50
Answer:
The correct answer is letter "C": the price rises and demand is elastic.
Explanation:
Price elasticity of demand describes the relationship between changes in quantity demanded and prices. It is calculated by dividing the percentage change in quantity demanded by the percentage change in price. If the result is equal to or greater than 1, the demand is elastic. This means <em>in front of relatively small changes in price, major changes in quantity demanded will occur.
</em>
Therefore,<em> if a good or service increases in price being the product inelastic, the quantity demanded is likely to drop (demand law) implying the producers' revenue will be decreased.</em>
