Answer:
The maximum price that should be paid for one share of this stock today is $46.86
Explanation:
Using the dividend discount model, we can calculate the price/fair value of the stock today. The DDM bases the price of the stock on the present value of the expected future inflows from the stock in the form of dividends and terminal value. The discount rate used to discount the cash flows is the cost of equity or required rate of return on stock.
The price of this stock at time zero (t=0) will be,
Prcie = 2 / (1+0.08) + 2.5 / (1+0.08)^2 + 50 / (1+0.08)^2
Price = $46.86
Answer:
Hi there!
C. Debit Miscellaneous Expense $270; credit Cash $270.
Explanation:
At the time of the reimbursement from the petty cash, the vouchers for the money used are presented and these must be charged to the different expenses incurred.
In October 1, the journal entry for the petty cash increase of $54 will be:
Debit Petty Cash $54; credit cash $54.
<span>Budgeting ...Accounting. ...Marketing. ...Sales. ...Hiring Employees. ...Customer Service. Maybe!</span>
Conversion costs are the combination of direct labor costs plus factory overhead costs. Hence, conversion costs exclude the cost of direct materials.
So, here the conversion cost = Direct labor cost + Factory overhead cost
= $ 84,000 + $ 45,500
= $ 129,500
Answer:
21,200 units
Explanation:
For determining the sales, first we have to compute the net operating income difference which is shown below:
= Net operating income under absorption costing - Net operating income under variable costing
= $89,000 - $74,600
= $14,400
Now the inventory units increased by
= $14,400 ÷ 12 per unit
= 1,200 units
And, the production units are 22,400
So, the sales would be
= 22,400 units - 1,200 units
= 21,200 units
This is the answer and the same is not provided in the given options
