Answer:
A) $50
Explanation:
The computation of the intrinsic value of the stock is shown below:
But before that the required rate of return is computed by using CAPM
Required rate of return = Risk-free rate of return + Beta × (Market rate of return - risk-free rate of return)
= 5% + 0.5 × (13% - 5%)
= 5% + 0.5 × 8%
= 5% + 4%
= 9%
Now the intrisinc value is
= Dividend ÷ (required rate of return - growth rate)
= $6 ÷ (9% - (-3%)
= $6 ÷ 12%
= $50
Hence, the intrinsic value of the stock is $50
Therefore the correct option is A.
Answer:
TRUE
Explanation:
It is true that if a costumer has a coupon for 30% off any skateboard and then another coupon for an extra 5% off a total purchase, you can simply add the coupons together to determine the discount as long as they are only buying one skateboard
.
The above assertion is correct because the amount of the skateboard will be the same as the amount for the sale, hence both percentages making up 35% can be applied to the skateboard amount.
<u>However if they buying more items than just a skateboard, the total amounts of the different items of purchase has to be added before applying the discount percentage.</u>
<u />
Answer and Explanation:
The journal entry to record the issuance of the bond is as follows:
Cash Dr (5,000 × 103) $515,000
Discount on bond payable Dr $4,485,000
To Bond payable (5,000 × $1,000) $5,000,000
(Being the issuance of the bond is recorded)
Here cash and discount on bond payable is debited and credited the bond payable
The date,
signature
rules.
Answer: <em>Post-conventional level of moral development</em>
Explanation:
Under this level an individuals sense of morality or moral sense is referred to as or defined in words of abstract values and principles. Individuals now tend to believe that few rule and laws are completely unjust and therefore should be eliminated or changed. This level is further marked by a thorough and growing realization i.e. an individuals is a separate entity from the society and thus that individual may tend to disobey the rules which might be inconsistent with his/her own principles.
