Answer:
B
Explanation:
The sources of quantitative standards include historical experience, engineering studies, and input from operating personnel.
Answer:
The journal entry is as follows:
Retained earnings A/c Dr. $18 million
To common stock $0.30 million
To capital paid in excess A/c $17.70 million
(To record the stock dividend issued at 1%)
Working notes:
Shares issued = 1% of 30 million
= 0.30 million
Retained earnings:
= 0.30 million × $60 per share
= $18 million
Common stock:
= 0.30 million × $1 par value
= $0.30 million
Capital paid in excess:
= Retained earnings - Common stock
= $18 million - $0.30 million
= $17.7 million
<span>Salary is the correct answer. </span>
Answer:
The value of the stock today is $20
Explanation:
Using the CAPM equation, we first calculate the required rate of retunr on the stock.
The equation for CAPM is,
r = rRF + Beta * rpM
Where,
- rRF is the risk free rate
- rpM is the risk premium on market
- Beta * rpM is the risk premium on stock
r = 0.05 + 0.04
r = 0.09 or 9%
The value of the stock can be calculated using the zero growth model of DDM. The DDM values the stock based on the present value of the expected future dividends from the stock. As the dividend from the stock is expected to remain constant through out to an indefinite period, the value of the stock today is,
P0 = Dividend / r
P0 = 1.8 / 0.09
P0 = $20
Answer:
B. $1,639
Explanation:
To do arbitraje we will ask at Bank A for $0.305
and then bid in Bank B at $0.306
As the transactions has no cost we are doing a profit by using the exchange as they allowed. Doing this procedure will at some point eliminate the difference in exchange rate for these bank as the purchase will rise the ask rate for Bank A and the sale will decrease the bid rate.
Total: 501639,3442622951
The profit will be for: 501,639.34 - 500,000 = 1,639.34
