managers are the managers concerned with implementing the plans policies of top managers and supervising low level managers
1 answer:
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Answer:
option (D) loss, $3,000
Explanation:
Given:
price of the truck = $48,000
estimated residual value = $8,000
Exchange price of the truck = $60,000
Trade allowance = $35,000
Since, straight line depreciation is given, thus,
Total depreciation =
or
Total depreciation = $5,000 per year
Therefore,
the book value after two years
= Price of truck - total depreciation in two years
or
= $48,000 − ($5,000 × 2 years)
= $38,000
Now,
a trade allowance received ( i.e $35,000 ) is less than the book value
therefore a loss is recorded
The amount of loss = (Book value - trade allowance received)
or
The amount of loss = $38,000 - $35,000 = $3,000
Hence, correct answer is option (D) loss, $3,000
Answer:
For this case let X represent the earnings per share. And we know that:
represent the earnings per share at year 0
The increasing factor on this case is i = 3.3% = 0.033
So then we can find the earnings per share at year 1 like this:
Then we can use the dividen growth model given by the following expression:
Where P0 represent the share price and R=12% =0.12 the discount rate and if we replace we got:
So then the share price for Bill's Bakery on this case would be $ 36.33
Explanation:
For this case let X represent the earnings per share. And we know that:
represent the earnings per share at year 0
The increasing factor on this case is i = 3.3% = 0.033
So then we can find the earnings per share at year 1 like this:
Dividend growth model is defined as a valuation model, used to "calculate the fair value of stock, assuming that the dividends grow either at a stable rate in perpetuity or at a different rate during the period at hand".
Then we can use the dividend growth model given by the following expression:
Where P0 represent the share price and R=12% =0.12 the discount rate and if we replace we got:
So then the share price for Bill's Bakery on this case would be $ 36.33