Answer:
Required return 10.27%
Dividend yield 5.77%
Expected capital gains yield 4.5%
Explanation:
Calculation for required return using this formula
A. R = (D1 / P0) + g
Let plug in the formula
Required return = ($2.30 / $39.85) + .045
Required return = .1027*100
Required return= 10.27%
Therefore Required return is 10.27%
Calculation for dividend yield using this formula
Dividend yield = D1 / P0
Let plug in the formula
Dividend yield = $2.30 / $39.85
Dividend yield = .0577*100
Dividend yield = 5.77%
Therefore Dividend yield is 5.77%
Calculation for the expected capital gains yield
Using this formula
Expected capital gains yield=Required return-Dividend yield
Let plug in the formula
Expected capital gains yield=10.27%-5.77%
Expected capital gains yield=4.5%
Therefore Expected capital gains yield is 4.5%
Answer:
-Tax rates
-The general level of stock prices
Explanation:
The factors that a firm cannot control are the ones that it has no power to decide and they are determined by a third party. According to that, from the options given, the factors that the firm cannot control are tax rates because they are established by the government and the general level of stock prices because it is determined by the supply and demand in the market.
The other options are not right because the company can establish its process to evaluate investments and expenses and how to finance its assets with debt and equity.
One of the best things that Laura can do to be able to attain the goal is to increase the benefits that the employees are getting out of working for her. The benefits may come from different forms such as longer leaves, greater wages, health benefits, etc.
The amount of uncollectible accounts expense recognized on the Year 2 income statement is $1,830.
Explanation:
- On January 1, Year 2, Grande Company had balance = $69,600 in the Accounts Receivable account
- Grande provided services = $183,000
- The Allowance for Doubtful Accounts account = $2,600
- The company collected cash from accounts receivable = $215,500
- Uncollectible accounts are estimated to be = 1% of sales on account
- Thus, following calculation gives the desired result,
- Multiply amount of Grande services with 1% sales on account.
- i.e : $183,000 sales on account × 1% = $1,830
- So, the amount of uncollectible accounts expense is $1,830 as the income statement for the 2nd year.
- The reserves are recorded when, the uncollectible accounts expense are debited and credit the allowance for the uncollectible accounts.
- There are many reasons for the uncollectible accounts such as,
- the debtor's bankruptcy,
- the inability to get the debtor,
- fraud, etc
