Answer:
$ 152.35
Explanation:
The stock price today can be computed by first determining the future value of the dividend in perpetuity ,then discounting that to present value.
Value in perpetuity=dividend/required return
dividend is $20
required return is 5.10%
value in perpetuity=$20/5.10%=$392.16
The price of the stock today is the present value of the value in perpetuity
PV=FV*(1+r)^-n
FV is $392.16
r is the required return of 5.10%
n is the number of years involved,which is 19,it is 19 because counting from today till the next next years would be first day of the next twenty years
price=$392*(1+5.10%)^-19=$ 152.35
Answer:
Dec. 31
Debit Warranty Expense 14,800
Credit Warranty Payable 14,800
Explanation:
Calculation to Determine the estimated warranty expense for the year
Based on the information given we were told that Florida Keys sales has the amount of $1,450,000 with 3% sales warranty obligation, and Florida keys as well had debit Warranty Expense of the amount of $28,700 this means that the Estimated warranty expense will be calculated as;
$1,450,000 * 3% =$43,500
$43,500-$28,700=$14,800
Therefore the Journal entry will be:
Dec. 31
Debit Warranty Expense 14,800
Credit Warranty Payable 14,800
Answer:
- Higher demand for paper, less wood for bats, the higher price of bats, OR less supply of bats.(have to pay a higher price for wood, and if price doesn't change, they have to make less).
- Higher demand for cheese, cows kept alive, leather is scarce, the higher price of mitts. (less supply because more of the resource is allocated to the milk instead of the leather).
Explanation:
The baseball bats, as well as, paper both, are made employing the resources generated from wood resources. Similarly, the catcher's mitts and cheese are made using the cows as the resource. If two products are made employing similar resources, an increase in the price of one leads to an increase in the other as well. This occurs primarily due to the fact that if the price of the first good increases, the producer of that good is likely to pay more to get the resource and sell the good at a higher price later. Thus, the other producer will either buy less and produce less or spend more to get the resource as per his need.
Explanation:
Because there is no unity the would not be done properly because there is role for every one
Answer:
Instructions are below.
Explanation:
Giving the following information:
Option 1:
$12,000 cash now
Option 2:
$900 every quarter for 4 years.
Interest rate= 8% compounded quarterly
We need to determine the present value of option 2.
First, we need to calculate the future value of the investment. We will use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= cash flow= 900
n= 4*4= 16
i= 0.08/4= 0.02
FV= {900*[(1.02^16)-1]} / 0.02
FV= $16,775.36
Now, we determine the present value:
PV= FV/(1+i)^n
PV= 16,775.36/(1.02^16)
PV= $12,219.94
It is more profitable to accept option 2. It provides the highest present value.
