Answer:
The expected return on stock is 30%
Explanation:
Growth rate = Return on Equity * Retention ratio
Growth rate = Return on Equity * (1- Payout ratio)
Growth rate = 25% * (1 - 0.40)
Growth rate = 0.25 * 0.60
Growth rate = 0.15
Growth rate = 15%
Hence, Expected return = Dividend return + Growth rate
Expected return = 15% + 15%
Expected return = 30%
Therefore, the expected return on stock is 30%
Answer:1 ) 6 units of output,( 2) Total revenue is $90, (3) Total Cost is $93
Explanation:
Q TFC TVC. TC
$ $ $
O 11 0 11
1 11 12 23
2 11 22 33
3 11 34 45
4. 11 48 59
5 11 64 75
6 11 82 93
To calculate the total cost
TFC + TVC = Total Cost
11 + 0 = 11
11 + 12 = 23
11 + 22 = 33
11 + 34 = 45
11 + 48 = 59
11 + 64 = 75
11 + 82 = 93
The total cost is $93
To calculate the Total revenue
Price × Quantity
Since price = $15, Quantity = 6 unit
15 × 6 = 90
Total revenue = $90
The firm will produce 6 units of output
Answer:
unearned service revenue 7,500 DEBIT
service revenue 7,500 CREDIT
Explanation:
the job is complete on July 31th
so <em>we write-off the unearned service reveue</em>
and <em>we recognize the service revenue </em>for the whole amount of the contract
The cash receipt occurs on March 1st so w edon't haveto post anythign related to cash on July 31th.
the unearned revenue account is used first because the business has the obligation of perform the job or return the cash. So it is a liablity until the job is completed
