Answer:
Decline
Explanation:
The product life cycle time can be defined as the process that a product undergoes beginning right from it's inception into the market until it declines or is removed from the market. The product life cycle has four stages namely:
- Introduction
- Growth
- Maturity
- Decline.
In the decline stage the sales of the product reduce drastically at a very high rate. The organization tends to lose a lot of shares in the market.
In the decline stage the product is threatened with low sales and eventual removal from the market if the company does not come up with a new designing and rebranding approach.
Answer:
Fair Value adjustment $5,000 Dr.
Unrealized holding gain-net income $5,000 Cr.
Explanation:
Common stock purchase price = $500,000
North company outstanding stock = $10,000,000
5% stock of outstanding stock purchased :
(5/100) * $10,000,000
0.05 * 10,000,000
= $500,000
Fair value of investment = $505,000
Adjustment in fair value = $505,000 - $500,000 = $5000 ( Debit)
Unrealized holding gain-net income = $505,000 - $500,000 ( Credit)
Answer:
$68.48
Explanation:
We have a stock that pays no dividends for 9years. Once the stock begins paying dividends, it will have a constant growth rate of dividends. We can use the constant growth model at that point. It is important to remember that general constant dividend growth formula is:Pt= [Dt× (1 + g)] / (R− g)This means that since we will use the dividend in Year 9, we will be finding the stock price in Year 10. The dividend growth model is similar to the PVA and the PV of a perpetuity: The equation gives you the PV one period before the first payment. So, the price of the stock in Year 10 will be:P9= D10/ (R− g) = $17 / (12.5/100 − 3.9/100) = $197.67
The price of the stock today is simply the PV of the stock price in the future. We simply discount the future stock price at the required return. The price of the stock today will be:P0= $197.67/ 1.125^9= $68.48
Answer:
$75,000
Explanation:
Revenue is said to be earned on the deliver of the goods and services to the party that enjoys the benefits from the good or service.
As long as control of the goods has been transferred, the revenue is earned. Note that this is not when cash has been collected.
As such, if the company earned $75,000 in 2018 but some amounts are to be collected in subsequent years, the revenue earned in 2018 is still $75,000 while the amounts yet to be collected will be recognized in accounts receivable.
