Money is functioning as a medium of exchange. Money makes transactions easier, instead of having to barter for items, you can complete transactions through the usage of money.
Money serves three primary functions unit of account, store of value and most important medium of exchange.
Answer:
The new price will be $11.89 if the market risk premium falls to 8% changing the required rate of return to 15.6%.
Explanation:
We will calculate the price of the share today using the constant growth model of DDM as the stock's dividends are growing at a constant rate forever. The formula for constant growth model is,
P0 = D0 * (1+g) / (r - g)
Where,
- D0 * (1+g) is the dividend expected for the next period or D1
- r is the required rate of return
- g is the growth rate in dividends
We need to find the new required rate of return. The required rate is unknown and can be calculated using the CAPM. The required rate under CAPM is,
r = rRF + Beta * rpM
r = 0.06 + 1.2 * 0.08 = 0.156 or 15.6%
Plugging in the available values for new r, g and D0 to calculate price today,
P0 = 1.2 * (1 + 0.05) / (0.156 - 0.05)
P0 = $11.886 rounded off to $11.89
Answer:
$267,400
Explanation:
Calculation to determine What amount should Stallman report as its December 31 inventory?
Using this formula
December 31 inventory=Goods costing on hand+Goods purchased+FOB shipping point
Let plug in the formula
December 31 inventory=$225,000+$20,400+$22,000
December 31 inventory=$267,400
Therefore the amount that Stallman should report as its December 31 inventory is $267,400
Answer:
<u><em>Procedure to pass new tax laws:</em></u>
1. First, a representative sponsors a bill.
2. The bill is then assigned to a committee for study.
3. If released by the committee, the bill is put on a calendar to be voted on, debated or amended
4. If the bill passes by simple majority (218 of 435), the bill moves to the Senate.
5. After Congress passes the bill,
6. it goes to the president, who can either sign it into law or veto it.