Answer: Externalities occur when the actions of an individual or group spill over onto others, without their consent.
Explanation:
By definition, an Externality is the effect of an action by an individual or group that spills over onto third parties without their consent.
Externalities can be either negative or positive. A positive externality for instance would be bees from a bee farm pollinating flowers in the environment.
A negative externality would be air pollution from China for instance contributing to global warming effects experienced in Northern Africa.
Answer:
Explanation:
The journal entry is shown below:
Finished goods A/c Dr XXXXX
To Work in progress A/c - Waterproofing XXXXX
(Being the completion of the production is recorded)
Since there are 2 steps to make the finished good. The first one is raw material and then process the raw material which we called work in progress account, After processing the product, the goods are ready to the sale which we called finished product.
So, we debited the finished goods account and credited the work in progress account
Depending on the supply and demand of equity, a bond’s price can vary, thus the premium or discount price.
For example, when the interest rate falls, older bonds may become valuable because they were sold in a higher interest rate environment and therefore with a higher coupon rate. Consequently, investors holding those bonds can commend a "premium" to sell equity. On the other hand, if the interest rate rises, older bonds may become less valuable. In order to get rid of them, investors may have to sell for less, thus the "discount” price.
Bond prices are quoted as a percent of the bond’s face value, and an easy way to learn the price of a bond is simply by adding a zero to the price quoted. For instance, when you hear a bond is quoted at 99, it means the price for the bond is $990 for every $1,000 of face value. Because the bond price is below the face value, it’s said the bond is traded at a discount. On the other hand, if the bond is trading at 101, it means you will pay $1,010 to get that $1,000 face value bond.
The dividend discount model (DDM) is a procedure for valuing the price of a stock by using the predicted dividends and discounting them back to the present value. If the value obtained from the DDM is higher than what the shares are currently trading at, then the stock is undervalued.
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Answer:
$50
Explanation:
The price of the stock can be estimated using the constant growth dividend model
the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
growth rate = retention rate x ROE
Retention rate = 1 - payout ratio
ROE = Return on equity = 15%
Payout ratio = dividend per share / earning per share
Payout ratio = 3/5 = 0.6
Retention rate = 1 - 0.6 = 0.4
growth rate = 0.4 x 15 = 6%
Price of the stock = 3 / (0.12 - 0.06)
3/0.06 = $50
Answer: True
Explanation:
In advertising, a Testimonial is a written or spoken statement by a person who has used a product attesting to the effectiveness of said product. A Testimonial is a lot like an Endorsement except that Endorsements are testimonials by Celebrities.
While Testimonials are usually used to attract new customers, they are very effective in confirming to current customers that they chose the right product.
For example, imagine you walk into Epic Electronics to buy a computer and you see a video Testimonial by a person your age who absolutely loves the effectiveness of the product you want to buy. You would feel a bit reassured getting that product after seeing that Testimonial.
