Answer:
Dr Dividends payable ($2*42000) $84000
Cr Cash $84000
Explanation:
Initially,on July 15 2017, the necessary entries would be to debit retained earnings and credit dividends payable with $84000 to show that the company owes the shareholders dividends.
On the payment date, the entries would to debit dividends payable and to record outflow of cash used in making the dividends payment,hence cash or bank account is credited as a decrease in cash and corresponding entry posted to dividends payable.
Answer:
Price we are wiling to pay = $46.429
Explanation:
Hi, this can be calculated using the dividend discount model
Stock price we are willing to pay = D / (r - g) where,
D = Dividend
r = required rate of return of investor
g = growth
So working the formula gives us,
Price = 1.95 / (0.085 - 0.043)
Price = $46.429
This is the price we are willing to pay.
Hope that helps.
Price level.
The aggregate demand curve represents the total quantity of all goods (and services) demanded by the economy at different price levels
