Answer:
Current price of the stock of Jameson company is $18.62. Therefore, the correct option is A
Explanation:
The formula of required rate of return is:
Required rate of return = Risk free rate + Beta × Market risk premium
= 4% + 1.15 × 5%
= 4% 5.75%
= 9.75%
Computation of current stock price is:
Current stock price = Expected dividend per share / (Required rate of return - Growth in dividend)
= (0.75 + [5.50% × 0.75] ) / (0.0975 - 0.055)
= 0.79125 / 0.0425
= $18.62
Answer: To know the amount of tax the business should pay from reported profit which is different from it's actual tax bill
Explanation:
Income tax expense could be described as what is calculated that the company owes in taxes according to accounting rules. They are reported on the income statement.
While Income tax payable is described as the actual amount the company owes in taxes based on the rules of tax code. They appear on the balance sheet of the company accounting documents until the bills are cleared off or paid.
The reason for understanding the difference is to know the amount of tax the business should pay from reported profit which is different from it's actual tax bill
The two situations with the highest total surplus are :
Surplus is defined as an amount of something that has been left over, when all the requirements of a person have been met.
1. Jay buys a house for $40,000 less than he was willing to pay. he bought his home from sellers who received $2,000 more than they were willing to sell for.
4. Kevin wanted to spend $50 on a dishwasher and bought one at $45 from a producer who was hoping to receive $40.
Answer: decreased by 8.5%
Explanation:
The beta coefficient of a stock is simply used to measure the volatility of a stock which is relative to the market.
From the question, we are informed that investor's portfolio has a beta coefficient of 0.85 and that the overall market declined by 10% over the course of a year.
Based on the information above, the value of the portfolio would have decreased by:
= 0.85/10
= 0.085
= 8.5%
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Transparent – The employees feel a sense of trust in a transparent culture, since they can express their thoughts.
Involved – in helps us employees who have the same shared interest since we are offered a lot of on the job learning and training programs
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