Answer:
1. $12.31
2. -11.96%
Explanation:
a) Calculation to determine the intrinsic value of a share of Xyrong stock
First step is to calculate the Required Return
Using this formula
Required Return = Risk-free Rate + [Beta * (Expected Market Return - Risk-free Rate)]
Let plug in the formula
Required Return= 5.5% + [2.7 * (17% - 5.5%)]
Required Return= 5.5% + 31.05% = 36.55%
Second step is to calculate g using this formula
g = ROE * (1 - Payout Ratio)
Let plug in the formula
g= 18% * (1 - 0.25)
g= 13.5%
D0 = EPS0 * Payout Ratio = $10 * 0.25 = $2.50
P0 = [D0 * (1 + g)] / [r - g]
= [$2.50 * (1 + 0.135)] / [0.3655 - 0.135]
= $2.8375 / 0.2305 = $12.31
b). Holding Period Return = [P1 + D1 - P0] / P0
= [$8 + $2.8375 - $12.31] / $12.31 = -$1.4727 / $12.31 = -0.1196, or -11.96%
Answer:
The correct answer is letter "B": Order Qualifier.
Explanation:
An Order Qualifier represents the minimum features a good or service must meet so consumers can think about purchasing them. Variables that could fall into this category are price, convenience or the product's reputation. If the good or service accomplishes one of those characteristics and is of preference of the consumers, then the firm has an order winner.
Answer:
Sh. 300,001.60
Explanation:
Note: <em>Missing word has been attached</em>
Particulars Amount
Annual payments 86,038
x PV Annuity due 8%, 10 periods 3.48685
Amount recorded for the leased asset 300,001.60
Answer:
Match the invoice with the PO.
Record the transaction in the system.
Post the transaction to a ledger
Generate unadjusted Trial balance
Prepare adjusted Trial Balance.
Issue Financial statements
Closing entries
Post closing Trial balance.
Explanation:
The accounting procedure is followed to record any transaction of the business. The transaction are recorded in the system and then these transactions are posted into ledger which forms the trial balance and then financial statements are prepared.
