Answer:
What is the expected dividend yield for Portman's stock today?
d. 6.40%
Suppose Portman is considering issuing 62,500 new shares at a price of $26.78 per share. If the new shares are sold to outside investors, by how much will Judy's investment in Portman Industries be diluted on a per-share basis?
a. $0.52 per share
Thus, Judy's investment will be diluted, and Judy will experience a total loss of $0.52 x 7,500 = $3,900
Explanation:
cost of equity = Re = risk free rate of return + (Beta × market premium) = 5% + (0.90 x 6%) = 10.4%
dividend in one year = $1.68 x 120% = $2.016
intrinsic stock price = $2.016 / (10.4% - 4%) = $31.50
expected dividend yield = dividend / stock price = $2.016 / $31.50 = 6.4%
Judy's loss per share = ($31.50 - $26.78) x (62,500 / 562,500) = $0.5244
Answer:
The correct answer is d. $0.31 per client-visit; $24,766 per month.
Explanation:
The costs can be of fixed nature or a variable nature or of a mixed nature. A mixed costs contains a component of both fixed and variable costs. The high-low method is used to calculate the variable component per unit of a mixed cost. Th formula for high low method is:
Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity level - Lowest activity level)
the highest activity is in June, 13400 client visits and the highest cost is also of this activity. The lowest activity is in August, 11207 client visits and the lowest cost belongs to this activity.
Variable cost per unit = (28920 - 28235) / (13400 - 11207)
Variable cost per unit = $0.31 rounded off to two decimal places
The fixed cost = Total cost - total variable cost
Taking 13400 activity,
The fixed component is = 28920 - (0.31 * 13400) = $24766 per month
Thus, the correct answer is d.
Answer:
If both demand and supply increase by the same amount, the output level will increase while price will remain same.
If increase in demand is greater than increase in price then price and output both will increase.
If increase in supply is greater than increase in demand, price will decline while output will increase.
Explanation:
The changes in the price and quantity of salsa depending on the degree of change in supply and demand. In case both the variables increase by the same proportion, the price will remain the same while quantity will increase.
In case the increase in demand is more than increase in supply it would cause the price to increase because of excess demand. At the same time, the quantity will increase as well.
In case the increase in supply is more than increase in demand, the price will fall due to excess supply. The output will increase as well.
Answer:
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Explanation:
Answer:
July 19;
Dr: Cash -----------------$784
Dr: Sales Discount----$16
Cr: Accounts Receivable--------$800
Explanation:
On July 19, the business must have factored in the $100 goods that was returned on July 12, so this will automatically reduce the accounts receivable to $800($900 - $100).
The discount does not reflect if paid on the last day of the month, so the discount of 2percent is still on as at July 19. The discount will be $16(2% of $800) and the amount of cash to be expected will be $784($800-16).
Therefore, the adjusting entry will be:
July 19;
Dr: Cash -----------------$784
Dr: Sales Discount----$16
Cr: Accounts Receivable--------$800