<span>Through specialization, both producers and consumers benefit. On the producer side, specialization allows producers to best use their resources in the most efficient manner possible by playing to their strengths, thus maximizing profit. On the consumer side, the fact that producers are specialized and thus efficient in their production ensures lower production costs than if products were made by less-specialized producers, translating into lower consumer-facing prices.</span>
Answer: See explanation
Explanation:
a. Record the warranty accrual at the time of sale in 2020.
Debit Warranty expense = $250,000 × 1% = $2,500
Credit Warranty Liability $2,500
(To record the warranty accrual)
b. Record the adjustment to the warranty accrual for actual warranty costs in 2020.
Debit Warranty Liability $800
Credit Cash and Payables $800
Answer:
The price does the dividend-discount model predict Colgate stock should sell for today is $66.47
Explanation:
In order to calculate the price does the dividend-discount model predict Colgate stock should sell for today we would have to calculate first the Present value of dividend of next 5 years as follows:
Present value of dividend of next 5 years as follows=
Year Dividend Discount factor Present value
a b c=1.085^-a d=b*c
1 $ 1.62 0.921659 $ 1.49
2 $ 1.74 0.849455 $ 1.48
3 $ 1.86 0.782908 $ 1.46
4 $ 1.98 0.721574 $ 1.43
5 $ 2.10 0.665045 $ 1.40
Total $ 7.25
Then, we have to calculate the Present value of dividend after 5 years as follows:
Present value of dividend after 5 years=D5*(1+g)/(Ke-g)*DF5
Present value of dividend after 5 years=$2.10(1+6%)/(8.50%-6%)*
0.665045
Present value of dividend after 5 years=$59.22
Current value of stock=Present value of dividend of next 5 years+ Present value of dividend after 5 years
Current value of stock= $7.25+$59.22
Current value of stock=$66.47
The price does the dividend-discount model predict Colgate stock should sell for today is $66.47
Answer:
A. The proposed new project would have more stand-alone risk than the firm's typical project.
Explanation:
Answer: The correct answers are,
A)Civil Engineer 5)designs and oversees a large construction
process
B)Logging Equipment Manager 6categorizes trees based
on their knot size, straightness, and other characteristics
C)Energy Auditor 4)reduces the amount of energy homeowners and companies use
Explanation:
