Answer:
Dividend yield=10.3%
Explanation:
Mv=Do(1+g)/(Ke-g)
MV=?
Do=2.27
g=2.1%
Ke=14.56%
Mv=2.27(1+2.1%)/(14.56%-2.1%)
MV=2.75/(12.46%)
MV=$22.1
Dividend yield=dividend per share/share price per share
Dividend yield=2.27/22.1
Dividend yield=10.3%
Answer:
Lerner index for Botox = 0.9
Explanation:
The Lerner index measures market power in an industry. The formula for calculating the Lerner index is: L = (P - MC) / P
Lerner index for Botox = ($15 - $1.50) / $15 = 0.9
0.9 in the Lerner index means that a company has a very large market power. Under this situation, this is quite logical since Allergen has a monopoly on Botox, at least until the patent expires.
The Lerner index varies between 0 and 1, with 0 being a situation of perfect competition and 1 a monopolistic situation.
Answer: $17.28
Explanation:
6 month free concession in first year drops rent to:
= 20 / 2
= $10
Effective rent = [Present value of Year 1 rent + Present value of Year 2 rent + Present value of Year 3 rent ] / [ 1 - (1 / (1 + rate)^ number of years) / rate]
= [(10 / (1 + 10%) ) + (21 / (1 + 10%)²) + (22 / (1 + 10%)³)] * [1 - (1 / (1 + 10%)³/ 10%)]
= (9.09 + 17.355 + 16.5289) / 2.48685
= $17.28
Answer:
d) Debit Expenses $50,000 and Claims payable $100,000; Credit Cash $150,000.
Explanation:
As for the information provided,
There was this law suit against the company from past several years. Where the lawyers already estimated that liability on the company will arise amounting $100,000.
Thus, on the provisional basis such claims of $100,000 would have been provided ideally.
Now, after final judgement the court had cleared about the claim which is $150,000.
Thus, entry to record such claim of $150,000 will be:
Expenses A/c Dr. $50,000
Claims Payable A/c Dr. $100,000
To Cash A/c $150,000
The correct answer for this question is a. True. Hope this helps you fulfill your desires.
