Explanation:
the present value stock prices is equal to the present value of all future dividends of company.
Answer:
$670,000
Explanation:
For computing the book value, first we have to determine the depreciation expense using the straight line method which is shown below:
= (Original cost - residual value) ÷ (estimated useful life)
= ($1,050,000 - $100,000) ÷ (5 years)
= ($950,000) ÷ (5 years)
= $190,000
In this method, the depreciation is same for all the remaining useful life
Now the book value is
= Original cost - depreciation expense × number of years
= $1,050,000 - $190,000 × 2
= $1,050,000 - $380,000
= $670,000
Business is extremely important to a country's economy because businesses provide both goods and services and jobs. Businesses do these things much more efficiently than individuals could on their own. Businesses are the means by which we get most of the goods and services that we, as consumers, want and need. Which in another words a businesses is important for you so you could survive and earn money.
* Hopefully this helps:)
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Answer:
see below
Explanation:
By shares are sold ,the new shareholders become part owners in the company. They get rights to vote, and share in the profits of the business. The right to vote influences who becomes a member to the board of directors.
By shelling shares, the founders of business gives away their controlling rights. Investors may choose directors that oppose founders. In some circumstances, investors kicked out founders from the business.