Answer: a. The listing agreement they will use
b) Ted's office policy regarding intermediary brokerage
c) Ted's office policy regarding commission splits with "other" brokers
Explanation:
Apart from the fact that the statutory written statement regarding the brokerage services will be presented, it is appropriate for Ted to discuss the following with the sellers.
• The listing agreement they will use
• Ted's office policy regarding intermediary brokerage
• Ted's office policy regarding commission splits with "other" brokers.
These are needed to ensure that both the sellers and the buyer understands each other's stand and the agreement that are in place to ensure a smooth transaction.
Answer:
$251,000
Explanation:
The computation of the total book value of the firm's assets is shown below:
= Historical cost of building + cost of other fixed asset - total depreciation charged on the various assets + current liabilities + net working capital
= $189,000 + $56,000 - $49,000 + $36,600 + $18,400
= $251,000
We added the other cost which is computed above and deduct only the total depreciation so that the total book value of the firm's asset has come
To determine the quantity of any activity that will maximize total net benefit, economists employ the "<span>principle of marginal analysis"
Hope this helps!</span>
Answer:
Finance Lease Yes Operating Lease Yes
Explanation:
The lease payments present value should be used for measuring the liability under a capital lease. In the case of the operating lease, the liability when occured at the time when the rent expense should be recorded but not be paid. In addition to this, it is recorded at the actual value of cash that should be paid not the present value
Therefore the first option is correct
Answer:
The price of the stock six years from now will be $56.94
Explanation:
To calculate the price of a stock that pays a dividend which grows at a constant rate forever, we use the constant growth model of DDM. The current price of stock using the constant growth model is calculated as follows,
P0 = D1 / r - g
As, we don't know the D1, that is dividend expected for the next year, we will calculate it first,
45 = D1 / (0.12 - 0.04)
45 * (0.12-0.04) = D1
45 * (0.08) = D1
3.6 = D1
We use the D1 to calculate the price today. Thus, we will use D7 to calculate the price six years from now.
D7 = D1 * (1+g)^6
P6 = 3.6 * (1+0.04)^6 / (0.12 - 0.04)
P6 = $56.939 rounded off to $56.94
