This is FALSE. The fact act does not only focuses on contracts that involves some of the sale in the multimedia products, computer software and other type of computer information. So the answer in this question is FALSE.
Answer:
Site B should be chosen based on the IRR criterion
Explanation:
Please check the attached image for the complete question
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
When comparing projects, the project with the highest IRR should be chosen.
I hope my answer helps you
Answer: $28.30
Explanation:
Given the following :
Expected Dividend = $1.70
Earning from share sale at year end = $30
Expected rate of return on investment = 12%
Maximum price of stock :
(Earning from share + expected Dividend) / (1 + return rate)
(30 + 1.70) / ( 1 + 12%)
(30 + 1.70) / (1 + 0.12)
(31.70) / (1.12)
= $28.303571
= $28.30
The statement <u>A. Grayson is underemployed</u> best describes the Grayson's situation.
<u>Explanation</u>:
A person is said to be underemployed if he works for low wage or works for the job that does not make use of his skills.
Underemployment occurs due to excess of labor availability in-spite of work demand. The technological change may also cause underemployment. Underemployment causes due to decline in the economy.
In the above scenario, Grayson was underemployed due to downturn in the economy. He previously worked as a field technician but he was laid off due to decline in economy. Later he was appointed as stock employee at Home Depot.
Answer:
$21.11
Explanation:
Given that,
Current dividend, D0 = $4
Rate of return, rs = 13%

Here,
Current price of the stock = 
Growth rate, g = 5%


= $21.11
Therefore, the value of stock is $21.11