Answer:
Explanation:
Failure of credit customers to pay their bills is considered a bad debt in Accounting. This is recored as a bad debt expense in journal entries in the <em>period when the credit sale occurred</em>. This ensures that these bad debt expense matches the revenues earned during that period. In a company's financial statements, bad debt expense is recorded in the Income statement as <em>selling expenses.</em>
Answer:
The answer is D a larger number of firms will lead to a higher average cost
Answer:
$1.3794
Explanation:
The computation of the projected dividend for the coming year is shown below:
Last year dividend paid = Do
Expected Dividend in Year 1 (D1) = Do ( 1+g) = Do × 1.32
Dividend in Year 2 (D2) = Do ( 1+g)^2 = Do × 1.32^2
Dividend in Year 3 (D3) = Do ( 1+g)^3 = Do × 1.32^3
Dividend in year 4 , (D4) = D3 × (1+g) = Do × 1.32^3 × 1.22
Now the price at year 4 is
P4 = D4 × (1+g) ÷ ( R-g )
= Do × 1.32^3 × 1.22 × (1 + 0.07 ) ÷ ( 0.10 - 0.07 )
= Do × 100.08
Use Gordon Growth Model
The Current Price of Stock is
= D1 ÷ ( 1+ R)^1 +D2 ÷ ( 1+ R)^2 + D3 ÷ ( 1+ R)^3 + D4 ÷ ( 1+ R)^4 + P4 ÷ ( 1+ R)^4
$78 = Do ( 1.32 ÷ 1.1 + 1.32^2 ÷ 1.1 ^2 + 1.32^3 ÷ 1.1^3 +1.32^3 × 1.22 ÷ 1.1^4 + 100 .08 ÷ 1.1^4)
$78 = Do ( 1.2 +1.44 + 1.728 + 1.9165 + 68.36 )
Do = $1.045
Now
Projected Dividend for Year 1 is
= Do × 1.32
= $1.045 × 1.32
= $1.3794
Answer:
$995,745
Explanation:
PV = $0
PMT = $500
I/YR = 6
P/YR = 12
N = 40 x 12 = 480
your retirement account be in 40 years will be $995,745
Answer:
France has comparative advantage in production of wine
Austria has comparative advantage in production of rye.
4 bushels of rye for each bottle of wine
1 bottle of wine for each bushel.
b. 4 bushel of rye per bottle of wine.
Explanation:
France has comparative advantage in producing wine as it has opportunity cost of 4 bushels per bottle of wine. Austria has comparative advantage in producing bushels as it has opportunity cost of 10 bushels per bottle of wine. The both countries can gain advantage if they agree for 4 bushels per wine.
