Answer:
Its very simple, the required return would be 12% of the amount invested today. And this can be explained by the use of DVM (Dividend valuation Model), which is as under:
For ordinary shares r = (Dividend after one year / Share price now)
Dividend after one year = Required return * Share Price Now
Assuming no growth in the dividends, we can say that the required return would be 12% of the amount invested now which is the share price of the ordinary shares.
Answer:
The CPA Practice Advisor
The probability that the mean price for a sample of 30 federal income tax returns is within $16 of the population mean is:
= 56%
Explanation:
a) Data and Calculations:
Population mean (preparation fee for 2017 federal income tax returns) = $273
Population standard deviation of preparation fees = $100
Mean price for a sample of 30 federal income tax returns = $257 (which is within $16 of the population mean)
z = (x-μ)/σ
z = standard score
x = observed value
μ = mean of the sample
σ = standard deviation of the sample
Z = ($273 - $257)/$100
= 0.16
Using the z-table
P = 0.5636
Answer:
Option A; INCREASED COMPETITION FROM IMITATORS.
Explanation:
Innovation occurs only when something is entirely new, having never been done before. Innovation also exist when something which may have been done elsewhere is done for the first time in a given industry.
On the other hand, when other competitors in the same industry subsequently copy the innovator, even though it is something new for them, then it is imitation.
When a company comes out with a new product, its competitors typically go on the defensive, doing whatever they can to reduce the odds that the offering will eat into their sales. Responses might include: cranking up marketing efforts, offering discounts to channel partners and even lobbying for regulations that would hinder the rival's expansion.
Therefore, Lilypad's managers should prepare for INCREASED COMPETITION FROM IMITATORS next.
Answer:
$2,580
Explanation:
Depreciation = (Cost - Residual Value)/ Useful life
Yearly depreciation = ($43-800 - $3000)/8 = $5100
At the end of Year 5, total depreciation would be = $5100 X 5 = $25,500
Net book value at the end of year 5 = $43,800 - $25,500 = $18,300
Year 6, the extra ordinary repair that extended the useful life would be capitalized. Book value = $18,300 + $7,500 = $25,800
As 5 years have been expended, the remaining useful life would be 15-5 = 10 years
Depreciation expense year 6 = $25,800/10 = $2,580
