Answer:
$30.00
Explanation:
The price of the stock can be derived from the stock theoretical price formula given and explained below:
stock price=expected dividend/(market return-growth rate)
expected dividend=dividend paid today*(1+growth rate)
expected dividend=$2*(1+5%)
expected dividend=$2.10
market rate of return=12%
growth rate=5%
stock price=$2.10/(12%-5%)
stock price=$2.10/7%
stock price=$30.00
Answer:
Expl one year. To reorder, there is a fixed cost of $36, plus $11 for each storage device.anaMinimizing Inventory. An electronics store sells 100 digital storage devices per year. It costs $18 to store one storage device for one year. To reorder, there is a fixed cost of $36,tion:
Answer:
prepaid expense 15,500 debit
prepaid insurance 15,500 credit
Explanation:
<em>The amount of unexpired insurance will be the ending balance of the account</em>
4,500 debit
+ 16,600 premium paid
+/- adjustment
5,600 ending
4,500 + 16,600 - 5,600 = 15,500
Answer:
$250,000
Explanation:
Since the purchase cost of an old equipment is already incurred and it does not have any kind of impact in decision making so this cost would be considered as the sunk cost i.e. $250,000
The operating cost of old & new equipment would be relevant for calculating the annual cost savings and the current selling value of the old equipment would also be relevant as salvage value
Therefore $250,000 would be considered
