Answer:
$1,600.55
Explanation:
The computation of the expected level of the index in one year is shown below:
= Current index level × (1 + expected rate of return) - expected dividend in the next year
= $1,453 × (1 + 11.6%) - $21
= $1,621.55 - $21
= $1,600.55
We simply applied the above formula by considering the items shown above i.e current level index, expected rate of return, and the expected dividend in the next year
Answer:
The beekeeper will maintain hives where marginal cost equals marginal revenue.
So,
15 + 5q = 40
5q = 25
q = 25/5
q = 5 hives.
Explanation:
Answer:
The correct answer is $55.5.
Explanation:
According to the scenario, the given data are as follows:
Stock Price = $50
Dividend = $2
Equity cost = 15%
So, we can calculate the Price of the stock after 1 year by using following formula:
Stock Price = ( Dividend + Stock price after 1 year) ÷ ( 1 + Equity cost)
By putting the value we get
$50 = ($2 + Stock price after 1 year) ÷ ( 1 + 0.15 )
Stock price after 1 year = [$50 × 1.15] - $2
= $55.5
Answer and Explanation:
The computation of two different depreciation schedules is shown below:-
a. Using the Double-declining balance method
Year Equipment Cost Depreciation rate Amount
2005 $90,000 50% $45,000
2006 $45,000 50% $22,500
2007 $22,500 50% $11,250
2008 No depreciation as it is lower that straight line method that is $22,500 also we took the double rate of 25% so we consider 50%
b. Using the straight line method
Straight Line Depreciation Method:
$100,000 - $10,000
= $90,000
Year Equipment Cost Depreciation rate Amount
2005 $90,000 25% $22,500
2006 $90,000 25% $22,500
2007 $90,000 25% $22,500
2008 $90,000 25% $22,500
Depreciation rate is
= 1 ÷ 4 years
= 25
2. The double declining method reduced the net income while the straight line method increased the net icnome
<span>The correct answer is d. management does not own a large share of firm stock and pursues its own interests rather than those of shareholders.When management pursues its own interests, there is a conflict with the interest of the shareholders who hired the management in the first place.</span>
