Answer:
$7.63
Explanation:
Worth of the stock is the present value of all the cash flows associated with the stock. Dividend is the only cash flow that a stock holder receives against its investment in the stocks. We need to calculate the present values of all the dividend payments.
Formula for PV of dividend
PV of Dividend = Dividend x ( 1 + r )^-n
1st year
PV of Dividend = $0.63 x ( 1 + 15% )^-1 = $0.55
2nd year
PV of Dividend = $0.68 x ( 1 + 15% )^-2 = $0.51
3rd year
PV of Dividend = $0.83 x ( 1 + 15% )^-3 = $0.55
4th year
PV of Dividend = $1.13 x ( 1 + 15% )^-4 = $0.65
After four years the dividend will grow at a constant rate of 4.1%, so we will use the following formula to calculate the present value
PV of Dividend = [ $1.13 x ( 1 + 4.1% ) / ( 15% - 4.1% ) ] x [ ( 1 + 15% )^-5 ]
PV of Dividend = $5.37
Value of Stock = $0.55 + $0.51 + $0.55 + $0.65 + $5.37 = $7.63
Answer:
Investing in the stock market is not gambling and it isn't' riskier than playing blackjack in Las Vegas. Because when you invest you own a fraction of a business, and you have to evaluate the businesses so you could by a fraction of them considering their performance.
Explanation:
The reason behind this answer is that in the first place there is a big difference between gambling and investing. When you invest supported in fundamental and value theories. You buy the fraction of a business. So, you have to evaluate the businesses and decide which one is good for you to invest in. While when you bet on blackjack you bet on the probability of being right, instead of a business system. Also, because businesses are regulated, so they can't scam investors. And finally, because businesses want to create money, while blackjack is not an individual or institution with a purpose.
Answer:
B. a credit to Interest Revenue for $2700
Explanation:
The interest earned from Bonds receivable is recorded as an interest revenue. The 10% rate of interest given is an annual rate and as the interest is paid semi annually so the semi annual interest payment received is of,
Semi annual interest revenue = 54000 * 0.1 * 6/12 = $2700
Thus, on 31 December 2018, Leonard will record a debit to the cash for $2700 and a credit to the interest revenue for $2700.
Answer:
Laser Delivery Services, Inc. (LDS)
Analyzing the Effects of Transactions Using T-Accounts:
Cash
Date Accounts Titles Debit Credit
a. Common Stock $40,000
c. Delivery Truck $2,000
d. Delivery Truck 2,000
Balance 36,000
Common Stock
Date Accounts Titles Debit Credit
a. Cash $40,000
Land
Date Accounts Titles Debit Credit
b. Note Payable $12,000
Note Payable
Date Accounts Titles Debit Credit
b. Land $12,000
c. Delivery Truck 18,000
Balance $30,000
Delivery Trucks
Date Accounts Titles Debit Credit
c. Cash $2,000
Note Payable 18,000
d. Cash 2,000
Balance $22,000
2. Classified Balance Sheet as of December 31, 2010:
Assets:
Cash $36,000
Land 12,000
Delivery trucks 22,000 $34,000
Total assets $70,000
Liabilities + Equity:
Notes Payable 30,000
Common Stock $40,000
Total liabilities + Equity $70,000
Explanation:
a) Trial Balance
Cash $36,000
Land 12,000
Delivery trucks 22,000
Common Stock $40,000
Notes Payable 30,000
Totals $70,000 $70,000
b) Business transactions affect the accounting equation (assets = liabilities + equity) by increasing or decreasing the two sides equally. This means that the accounting equation is always in balance before and after every transaction.
Answer:
23 million shares
Explanation:
The computation of the number of authorized shares after these transactions are shown below:
Since the corporate charter represent the company could sell till 23 million shares of stock so here the no of authorized shared after the transactions should be 23 million shares
So, the second option is correct
And, the same is to be considered