The standards used to determine whether a group member's actions are acceptable are

The stock price of Webber Co. is $68. Investors require an 11 percent rate of return on similar stocks.

zheka24 [161]

To get the growth rate, we will follow the Gordon Growth modelP= D/(K-G)whereP= stock value=$68D= Expected dividend=$3.85G= Growth rateK= required rate of returnG =K-(D/P)Substitute the given valuesG= 0.11-(3.85/68)
G= 5.34%The growth rate for stock required is 5.34%

7 0

3 years ago

Consider the following alternatives: i. $ 140 received in one year ii. $ 240 received in five years iii. $ 350 received in 10 y

Svetradugi [14.3K]

Answer:

Ranking 10% interest rate:

1) 5 years

2) 10 years

3) 1 year

Raking 2% interest rate:

1) 10 years

2) 5 years

3) 1 year

Raking 18% interest rate:

1) 1 year

2) 5 years

3) 10 years

Explanation:

You have to apply to bring the amount of money to present value, according with the information, the formula is the next:

Present Value = Future Value/((1+ interest rate)^(n))

Where n is the number of years that you have to wait to receive the money.

You have to calculate every situation with the respective amount of time and interest rate, the result must be money. and when you get the 9 results, you have to compare every situation and chose the higher amount of money according to the interest rate, for example:

Present value = 140/ ((1+10%)^(1))= 127

= 140/ ((1+10%)^(5))= 149

= 140/ ((1+10%)^(5))= 135

So the answer for the first scenario with an interest rate of 10% is:

Ranking 10% interest rate:

1) 5 years

2) 10 years

3) 1 year

5 0

3 years ago

On January 1, 2016, Phoenix Co. acquired 100 percent of the outstanding voting shares of Sedona Inc. for $784,000 cash. At Janua

stiv31 [10]

Answer:

a) Consolidated net income for Phoenix and Sedona for 2018

Phoenix revenues $648,000

-Phoenix expenses ($412,000)

Phoenix Net Income $236,000

2018 Income from Sedona $54,075

Consolidated net income for $290,075

Phoenix and Sedona for 2018

b) Phoenix’s consolidated retained earnings balance at December 31, 2018

Phoenix’s consolidated retained earnings balance at December 31, 2018 = $347,075.00 (same as Phoenix because of equity method use)

c) What amount should Phoenix report for Sedona’s customer list?

Consideration transferred at fair value $784,000

Book value acquired ($548,800)

Excess fair over book value $235,200

To Equipment $95,000

To customer list (4 year life) $140,200

Three years since acquisition of customer list = $140,200/4 years = $35,050. Hence, Phoenix report $35,050 as Sedona’s customer list.

4 0

3 years ago

Using Google Wallet, consumers can pay for goods in stores. At check out, mobile users simply pass or tap their phone on a merch

siniylev [52]

Answer: False

Explanation: Google wallet and other similar payment methods such as Apple pay involving tapping on a merchant's payment terminal uses Near Field Communication (NFC) technology and not QR technology. Both methods are contactless methods of making payment, however, in the case of QR, it requires customers to simply scan a code similar to a barcode which has been specifically designed by the merchant from their mobile devices with the aid of camera. NFC payments doesn't require scanning a barcode as it only requires authentication by tapping on a merchant's payment system once the devices are close together.

5 0

3 years ago

The following are beta's for a Microsoft during four time periods. Compare the four estimated betas. What do you conclude about

zmey [24]

Answer:

Microsoft was doing good till 1990's because there was no competition at that time and they were the only operation system known, but when internet market was getting other competitors Microsoft's risk increased they couldn't compete with them.

Explanation:

Systematic beta reflects the risk which is present in the market and difficult to avoid.

Microsoft was doing great when and the reason they got on top was because there was no competitor so they weren't at risk.
But since the technological industry is enhancing Microsoft didn't adapt to change and continued with their old strategy which led them at this condition as there risk is increasing they are highly volatile to the market.

4 0

3 years ago