Answer:
$24.38
Explanation:
The computation of the one share of worth is shown below:
= Eight-year dividend ÷ (Required rate of return - growth rate)
where,
Next year dividend for eight-year
s would be
= Annual dividend × (1 + growth rate)^number of years
= $1.18 × (1 + 3.25%)^8
= $1.18 × 1.291577535
= $1.524061492
The other items rate would remain the same
Now placing these values to the formula above
So, the price would equal to
= $1.524061492 ÷ (9.5% - 3.25%)
= $24.38
Answer:
Explanation:
The correct journal entry is shown below:
Equipment A/c Dr 700,000
To Accumulated depreciation A/c $420,000
To Retained earnings A/c $280,000
(Being the error is recorded and the remaining balance is credited to the retained earning account)
The depreciation expense would be
= (Original cost - residual value) ÷ (useful life)
= ($700,000 - $0) ÷ (5 years)
= ($700,000) ÷ (5 years)
= $140,000
For three years, the depreciation would be
= $140,000 × 3 years
= $420,000
Answer:
The correct answers are:
a) Family owned restaurant
b) A manufacturer of cars
c) A company that invented a very comfortable razor
Explanation:
First of all, the family who owned a restaurant will be the one that would most likely engaged in advertising due to the fact that they provide a service that has to be known for the people of the community around the place and all the tourists that go that area, meanwhile the other familiy would obviously just sell its products to the better buyer that they could find.
Secondly, the manufacturer of cars would be the one that most likely engaged in advertising due to the fact that they found themselfs in a very competitive and oligopoly market that is the car market and therefore that they highly need to stand out their making them better than the ones from the competitors.
Finally, the company who invented a very comfortable razor would be the one who engaged more in advertising due to the fact that they known they have a better product that the rest of the competitors so they need to take advantage of that and make sure that the consumers know about it and with that they would sell more and therefore invest more in advertising as well.
<span>Your real income value will increase. The value of your money has now become higher, since deflation is a decrease in the overall money supply. Any income you do have, if it stays the same, will be able to buy more in products than it previously was able to.</span>
