Answer:
class A stocks
Explanation:
in 5 years, class A stock will be worth = $30 x (1 + 6%)⁵ = $40.15
in 5 years, class B stock will be worth = $20 x (1 + 12%)⁵ = $35.25
now we need to determine the present value if each stock:
class A stock present value = $40.15 / (1 + 8%)⁵ = $27.33
class B stock present value = $35.25 / (1 + 8%)⁵ = $23.99
since the present value of class A stock is higher, then the engineers should select that type of stocks.
The journal entry to record the purchase of merchandise on account for $2,750 with freight of $125 prepaid and added to the invoice is debit Purchases $2,750, debit Freight in $125, credit Accounts Payable $2,875. To accurately record the journal entry for each part of the transaction it is imperative to make sure each go into their designated section.
<span>What should the American manufacturer insist upon having if it wants to protect its right to sue the government in the event it does not pay for the goods? A wavier of immunity. A waiver of immunity revers to taking away rights to refuse to testify against someone by a witness. The person in question can waive their rights themselves and incriminate under the Fifth Amendment of the Constitution. </span>
Answer:
False.
It is not only the CAPM method that always provides an accurate and reliable estimate. The three methods look at the same issue from three different angles.
Explanation:
Despite their individual limitations, the methods have been found to provide some guidance to investors. The CAPM limitation lies in its use of historical data. The dividend growth method cannot be applicable to all firms, as it applies only to firms that pay dividend. Finally, the bond-yield-plus-risk-premium method suffers from the many unsubstantiated assumptions underlying it.