Answer:
$13,725
Explanation:
The movement in the warranty payable account over a period is as a result of the warranty expense for the period and the warranty payments made during the period.
Given that the company estimate warranty expense at 4.5% of sales, the estimated warranty for the period is the expense recorded in the income statement. This is equivalent to
= 4.5% * $305,000
= $13,725
Answer:
Maximum price to be paid for the stock = $12.43
Explanation:
The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.
<em>Hence the value of the stock would be the present value of its future dividend discounted at 15%</em>
Year PV of dividend
1 8 ×1.15^(-1)
2 4 × 1.15^(-2)
3. 2 × 1.15^(-3)
4 2 × 1.15^(-4)
PV of dividend = (8 ×1.15^-1) + (4 × 1.15^-2) + (2 × 1.15^ -3) + (2× 1.15^-4) = 12.439
Maximum price to be paid for the stock = $12.43
This is an example of a strength based selection system. It offers a different perspective on the labor pool.
Answer:
Equals the foreign exchange rate minus the inflation rate.
Explanation:
Nominal rate of interest refers to the interest rate which does not account for rate of inflation.
It is expressed as
Nominal interest rate = Real interest rate + rate of inflation
Real interest rate is considered to be a better measure since it is adjusted for rate of inflation.
Foreign exchange rate refers to exchange rate between two currencies which is based upon inflation and interest rates prevailing in the respective countries.
Answer:
Positive Statements: 1st & 2nd ; Normative Statements: 3rd & 4th
Explanation:
Positive Economics is <u>objective</u> & <u>facts</u> based <u>actual</u> economic issue description , explaining verifiable phenomenas (causal relationships).
Normative Economics is <u>subjective</u> & opinion based conclusive <u>solutions</u> to economic issues, including '<u>ought to be</u>' unverifiable suggestions.
1. Lung cancer kills millions of people each year: reflects actual objective verifiable fact about an economic (health) issue.
2. Too many people smoke: denotes another actual objective variable fact connected to (potential cause of) the above economic (health) issue.
So , these two are Positive Statements.
3. If the government were to increase taxes on cigarettes, fewer people would smoke : Is subjective opinion based probable solution to the above economic (health) issue.
4. The government should increase taxes on cigarettes : Is an 'ought to' suggestion for an economic participant (govt) to solve the above economic (health) issue.
So , these two are Normative Statements
