Answer:
the market value of the share is $1.78
Explanation:
The computation of the market value of the firm under the dividend discount model is shown below:
The Market value of the share is
= Dividend Payment ÷ Required return
= $0.18 ÷ 10.1%
= $1.78
Hence, the market value of the share is $1.78
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
$760,000
Explanation:
Costs of goods sold are the direct costs incurred in manufacturing products that sold to consumers in a period. It is obtained by using the formula below.
COGS = Beginning stock + purchases/ manufactured goods - ending stock stock.
For Edmiston Company
Beginning stock: $50,000
Endings stock: $40,000
Cost of goods manufactured: $750,000;
COGS = 50,000 + 750,000 - 40,000
COGS = $760,000
<span>The operator of a vessel involved in an accident must submit a written report to the Alabama Marine Police Division if as a result of the accident there is damage to the vessel and other property that exceeds the amount of 2000 dollars.</span>
Answer and Explanation:
The computation is shown below:
a. The rate of return in percentage is
= return ÷ investment
= $15 ÷ $150
= 10%
b. The economic profit is
= rate of return - normal profit rate
= 10% - 5%
= 5%
c. As the economic profit is more than 0 so it should be the entry
d. The rate of return in the long-run equilibrium to the 5% as the rate of return should be equivalent to the normal rate of profit
Answer:
False
Explanation:
Among the various reasons, Japan is a high country saving rate relative to investment that cause a significant trade surplus. A higher saving rate generally corresponds to trade surplus. Japan socio-political and economical conditions reveals that people have a high propensity to save. Many reason like high life expectancy rate, underdeveloped social security and tax incentives for income from capital and frequent environmental hazards attributed to the high rate of saving in Japan.
With the high rate of savings relative to domestic investment, Japan invest more funds in other countries(net capital outflow increases). This is matched with high net exports leading to a trade surplus.
