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Serjik [45]
2 years ago
12

Jenin recently purchased 100 shares of Tarifi's Optical common stock for $6,000. The stock is expected to provide an annual cash

flow of dividends of $400 indefinitely. Assuming a discount rate of 8 percent, how does the price Jenin paid compare to the value of the stock?
Business
1 answer:
dusya [7]2 years ago
8 0

Answer:

Since the present value of the perpetuity ($5,000) is less than the price that Jenin paid for the stocks ($6,000), we can conclude that she paid an excessively high price for them.

Explanation:

Jenin invested $6,000 in stocks that yield a perpetual dividend. In order to compare if Jenin made a good deal we must find the present value of the perpetuity:

present value = annual cash flow / discount rate = $400 / 8% = $5,000

Since the present value of the perpetuity is less than the price that Jenin paid for the stocks, we can conclude that she paid an excessively high price for them.

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Firms operating in industries where economies of scale are common will likely see ________ levels of labor productivity from the
kiruha [24]

Answer:

The correct word for the blank space is: higher.

Explanation:

Economies of Scale is a key concept for any business in any industry. It is also important for consumers trying to understand why smaller businesses may have to charge more for similar products made by larger companies. Overall, economies of scale mean <em>that production becomes more efficient as the number of goods being produced increases</em>.

6 0
3 years ago
Using the aging method of accounts receivable method, $5,000 of the company's Accounts Receivable are estimated to be uncollecti
gogolik [260]

Answer:

The correct answer is $4,500.

Explanation:

According to the scenario, the given data are as follows:

Uncollectible Account receivable = $5,000

Account receivable balance = $100,000

Allowance for Doubtful Accounts = $500

Credit sales = $150,000

So, we can calculate the bad debt expense by using following formula:

Bad debt expense = Uncollectible Account receivable - Allowance for Doubtful Accounts

by putting the value, we get

Bad debt expense = $5,000 - $500

= $4,500.

6 0
3 years ago
The ______ viewpoint regards the organization as arrangements of interrelated parts that operate together to achieve a common pu
timurjin [86]

Answer:

Classical

Explanation

Classical view point in management is very essential because it brings about increase in productivity, it involves making use of scientific method as well as job specialization among the employee to achieve common goal of the organization.

It should be noted that Classical viewpoint regards the organization as arrangements of interrelated parts that operate together to achieve a common

3 0
3 years ago
On May 7, Bergan Company purchased on account 10,000 units of raw materials at $8 per unit. During May, raw materials were requi
katrin [286]

Answer:

Dr Purchases/ Raw Material Inventory .......................80,000

Cr   Bank/Account Payable....................................................80,000

Dr Work in Process ................................................................67,400

Cr Raw Material Inventory............................................................67,400

Explanation:

FOR PURCHASE OF MATERIAL

Dr Purchases/ Raw Material Inventory .......................80,000

Cr   Bank/Account Payable....................................................80,000

Being purchase of 10,000 units of raw materials at  $8 per unit

FOR MATERIAL FOR PRODUCTION

Dr Work in Process ................................................................67,400

Cr Raw Material Inventory............................................................67,400

Being materials used in production: 7,500 units at $8 per unit for job 200 and 1,480 units at $5 per unit for job 305

In relation to 'purchase of material' we debit the raw material inventory account because material is increasing and is an asset account; and we credit Bank if the materials have been paid for OR 'accounts payable', if the material has not yet been paid for.

In relation to 'requisition of material for production' we debit the raw material inventory account because material is decreasing and is an asset account; and we credit 'work in process' to assign the cost of materials to the ongoing jobs respectively.

5 0
3 years ago
ACTION STEPS (What will be done) Step 1 Plann Step 2 4 Step 3 rll 의 Step 4 Step 5 Pa complete (5)​
pochemuha
I’m not sure………………………. ….
8 0
3 years ago
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