Answer:
The intrinsic value of A -$44.57 is higher than that of B- $ 29.71
Explanation:
<em>The intrinsic value is the present value of he expected future dividend discounted at he required rate of return.</em>
<em>So, we would work out the intrinsic value of the two stocks using the the formula below:</em>
Intrinsic value = D× (1+r)/(k-g)
Intrinsic value of stock A
D-3, r-11%, g-4%
= 3 ×(1.04)/(0.11-0.04)
=$44.57
Intrinsic value of stock B
D-2, r-11%, g-4%
= 2 ×(1.04)/(0.11-0.04)
= $29.71
<span>Teresa is an efficient manager. An efficient manager is someone who finds ways to complete the company goals with minimal waste, and as cost effective as possible. They find the best way to use the resources provided, including (but not limited to) employees, materials, technologies, or tools.</span>
The appropriate response is the second one. A preferred stock that qualifies the holder for a settled profit, whose installment takes need over that of normal stock profits. In the event that the required rate of return expands, the value diminishes
Answer:
b. $226,000
Explanation:
Cost of goods sold is the direct expense incurred in producing goods to be sold in a period. It involves direct labor, direct material, and overheads.
Cost of good sold is determined by
Beginning stock + purchases - closing stock.
In this case, the costs of goods sold will be Direct labor + Direct materials + overheads. + (ending - beginning work in progress)
i.e., = $35,000 + $73,000+ $114,000 + $ 4000
=$226,000
