Answer:
Value of a share = $15
Explanation:
<em>According to the </em><u><em>dividend valuation model</em></u><em>, the value of a share is the present value of expected dividend discounted at the required rate of return. </em>
This model is expressed in the formula below;
Value of a share = D/Ke
D- dividend payable in year one
Ke- cost of equity
Value of a share = 2.25/0.15
Value of a share = $15
Value of a share = $15
Answer: $24,080
Explanation:
The Static budget is based on a particular level of production and once it is prepared, it does not change even if the assumptions used in the calculation of the budget changes.
In this case, the budgeted direct material cost is $24,080 for a production level of 3,500 units of finished goods. This material cost is therefore based on a certain production level which makes it the static budgeted amount for materials.
Answer:
This was an executory contract because neither party has fulfilled their contract obligations (consideration). In other words, the contract has not been fulfilled yet, and both parties are still responsible for performing their contract obligations.
Even after Jackson mistakenly painted the neighbor's deck, the contract remains as executory since neither party has performed their obligations.
The correct answer is C. Time draft
Explanation:
In trade, a time draft is a document that acts as credit, this means the buyer of the product can get the product and pay it after a certain amount of time, which is stipulated through the draft. Moreover, this draft is accepted by both the buyer and the seller, and it is most commonly used in international trade. This type of draft is the one used in the case presented because the payment will occur in the future rather than immediately as it occurs in other types of drafts such as a sigh draft or in regular trade drafts. Also, in this case, the buyer obtained the good (oil painting) before payment occurs and the draft acts as a promise of paying.
