Answer:
The market price is $12.81 per share.
Explanation:
The price of the stock today can be calculated using the constant growth model of DDM as the dividends are expected to grow at a constant rate. The formula to calculate the price of the stock under constant growth model is,
P0 = D1 / r-g
Where,
- D1 is the Dividend for the next period or D0 * (1+g)
- r is the required rate of return
- g is the growth rate in dividends
P0 = 2.44 * (1+0.05) / (0.25 - 0.05)
P0 = $12.81
Answer: A- Revenue under the installment sales method, as soon as it has assisted Steffi in setting up the store.
Explanation: The installment sales method is a method of accounting accepted under the US Gaap. It is a method were revenue is recorded in instalments and the cost of sales and gross profit recognised upon the collection of the installment revenue.
It is a method of accounting used mainly by construction companies whose revenue are not received once but in installments.
Answer:
$620,000
Explanation:
to determine the net cash flow generated by the project, we can use the indirect method to determine cash flows:
net income = $790,000 x (1 - 30%) = $553,000
net income adjustments:
- depreciation expense $190,000
- increase in accounts payable $42,000
- increase in accounts receivable ($79,000)
- increase in inventory <u> ($86,000) </u>
Project's cash flow $620,000
Without the With the change
project project
Accounts receivable $5,000 $84,000 $79,000
Inventory $98,000 $184,000 $86,000
Accounts payable $75,000 $117,000 $42,000
Answer:
The correct Option is A
Explanation:
When the limited liability of the stockholder and it is a closely held corporation which might be challenged successfully if the stockholder, undercapitalized the corporation which means that the corporation does not have enough capital to pay creditors and conduct normal operations of the business and it will be done when it is established or formed.
Answer:
$574.71 billion.
Explanation:
The formula for calculating amount of deposits is as follows:
where,
D = Deposits
rr = required reserve rate
ER/D = excess reserve rate
C/D = non-bank currency to deposits
D = 574.712644
D = 574.71
Therefore, the amount of deposits is $574.71 billion.
