Answer:
A. 16.71%
Explanation:
Use dividend discount model (DDM) to solve this question.
Formula for finding the required return of a stock is;
r =
where P0 = Current price = $17.50
D1 = Next year's dividend = $3.45
r= required return = ?
g= growth rate = -3% or -0.03 as a decimal (negative sign is because dividend is expected to decrease)
r =
As a percentage , it becomes 16.71%
Answer:
The answer is:
1. Acquisition cost.
2. Estimated useful life to the company.
3. Estimated residual value at the end of the asset’s useful life to the company.
Explanation:
1. Acquisition cost/Purchase price: This is the amount at which the asset(s) was bought. The acquisition cost will include the original purchase price, the cost of transporting the asset to the factory etc. and subtract any purchases discount.
2. Estimated Useful life to the company: This is the number of years the purchased asset are estimated to last for. E.g fitting and furniture with an estimated value of 5 years while the equipment for production can be 7 years. This depends on the company policy though.
3. Estimated residual value: This is the amount of money the firm is expected to get from the asset after it has been fully depreciated.
Answer:
The answer is letter A. Earning normal profits because their returns on investment are equal to the opportunity costs of the time invested.
Explanation:
Because all resources are being used efficiently and there is no need to use them elsewhere.
<span>They sell and deliver in smaller quantities to "Retailers" and charge more per unit.
Hope this helped :)</span>
Answer:
Using the weighted-average method, the equivalent units of production with regard to direct labor were 132,500
Explanation:
Units % of Completion EQUP
Completed 110,000 100 110,000
Ending Work in
Process
<u> Inventory 45,000 50% 22,500</u>
145,000 132,500
Using the weighted-average method, the equivalent units of production with regard to direct labor were 132,500
This is the key feature of weighted average method. The number of equivalent units is calculated without making a distinction as to whether the activity occurred in the current accounting period or preceeding period.