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3 years ago

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1 answer:

Dmitry_Shevchenko [17]3 years ago

5 0

What's is the unemplyment rate?

The unemployment rate soared from a 50-year low of 3.5 percent to 14.8 percent in April 2021 at the beginning of the CVID-19 pandemic, and then fell faster than many forecasters anticipated, to 6.3 percent in January 2021

The employment rate is_____percent

The employment-population ratio represents the proportion of the civilian non-institutional population that is employed. In 2021, the U.S. employment rate stood at 56.8 percent.

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The company paid $35,000 cash in dividends to the owner, jen rogers. the entry needed to close the dividends account is:

Oxana [17]

The entry needed to close the dividend account is "Debit: Retained earnings $35,000 and credit: dividend expense $35,000" based on the journal transaction. The dividend is a portion of a company's earnings which be shared by the company to the investor as the return for their investment. This entry will decrease the retained earning balance.

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3 years ago

Read 2 more answers

A delivery van that cost $40,000 has an expected service life of eight years and a residual value of $4,000. Depreciation expens

vladimir1956 [14]

Answer:

$7,500

Explanation:

Calculation for the Depreciation of rah second year of the asset's life

Second year depreciation=(1/8 years*2)*[($40,000)-(1/8 years*2* $40,000)]

Second year depreciation=(0.25)*[($40,000)-(0.25*$40,000)]

Second year depreciation=(0.25)*[($40,000-$10,000)]

Second year depreciation=0.25*$30,000

Second year depreciation=$7,500

Therefore the Depreciation of rah second year of the asset's life using the double-declining-balance method is: $7,500

5 0

3 years ago

4. what influence may rising house prices have on inflation?

Talja [164]

Answer:

Explanation:

There is a correlation between inflation and house prices. ... When interest rates are low, buying homes can be more affordable and increase the demand for homes. If the supply of homes remains constant and the demand increases, then the prices of homes will increase.

7 0

3 years ago

The amount of a good that buyers are willing and able to purchase at a given price.

inysia [295]

Answer:

Quantity demanded is the amount of a good that buyers are willing and able to purchase at a particular price. Many things determine demand, but only price can determine the quantity demanded of a specific good. If you have the money and are willing to buy 2 ice cream cones a week, at $2 per cone, the quantity demanded would be 2 cones a week. Now, what happens if the price increases to $4 a cone? If you are like most people, the quantity of ice cream cones you demand will decrease as the price rises. In this case, assume your quantity demanded is now only 1 cone a week, which is what you are willing and able to buy. Notice that as the price of the cones increases, the quantity of ice cream cones demanded decreases. This means quantity demanded is negatively related to price-which means they have an inverse relationship. Economists refer to this relationship as the law of demand. The law of demand states that, other things being equal, when the price of a good rises, the quantity demanded of that good falls. The reverse is also true-when the price of a good falls, the quantity demanded of that good rises. The combination of the quantities people are willing and able to buy of a good or service at various prices constitutes a demand schedule. When the demand schedule is graphed, the demand curve is downward sloping.

7 0

2 years ago

"The company will pay a dividend of $15 per share 10 years from today and will increase the dividend by 5 percent per year there

statuscvo [17]

Answer:

Current Share price= $114.21

Explanation:

The Dividend Valuation Model is a technique adopted to detremine the value of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows that would arise from the asset discounted at the required rate of return (discount rate)

The model is premised on the concept of the time value of money. The idea that $1 today is not the same as $1 tomorrow. The $1 of today is worth more than that of tomorrow; because of the opportunity to earn interest. So to determine the worth of a future cash flow, we compute its worth today- its present value.

The Present Value of a future cash flow is the amount that needs to be invested today at a particular rate of return to equal the same cash flow in the future. Present value means the value in year 0 or now

The process of calculating the present value of a future sum is called discounting. So to calculate the current stock price in this question, we shall discount the future dividends using the required rate of return and then add them together.

So if an asset (e.g a stock) promises some cash flows in the future, those cash flows need to be brought to their present values and then be added to arrive at the value of the asset

In this question, the cash flows are the dividends as given and the rate of return (discount rate) is 15%

So we apply this model as follows:

Step 1 : PV of div from year 1 to 10 = 15× ((1-1.15)^(-10))/0.15) = 75.282

Step 2:PV (in year 10)of div from year 11 onward=(15×1.05)/(0.15-0.05)= 157.5

Step 3:PV(in year 0) of div from year 11 onward = 157.5 × (1.15)^ (-10) = 38.93

Current Share price= $75.282 + $38.93 = $114.21

<em>Note:</em><em> step 3 is important because the the cash flows from year 11 onward were discounted to arrive at their values in year 10. Since we are interested in the current price i.e year 0 value, it is important that we re-discount again to bring them to their PV in year 0.</em>

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3 years ago