Answer:
The stock's current price per share is $37.50 a share
Explanation:
According to the given data, Since company has no debt the current WACC = Required return on equity.
We can use the dividend discount model to find the price of the shares.
Therefore, Current value of firm = Dividend*(1+growth rate)/(required return-growth rate)
Current value = 1,000,000*40%*(1.05)/(0.1340-0.05) = $7,500,000
Price per share = value/shares outstanding
Price per share = $7,500,000/200,000 = $37.50 a share.
The stock's current price per share is $37.50 a share
<u>E)</u><u> As an expense on the income statement.</u>
<h3><u>An expense is what?</u></h3>
The operating costs incurred by a business in order to produce revenue are referred to as expenses. According to a proverb, "making money costs money."
Paying suppliers, paying employees, leasing facilities, and depreciating equipment are examples of frequent costs. Businesses are permitted to deduct tax-deductible expenses from their taxable revenue on their income tax returns in order to reduce their tax liability. However, there are tight guidelines set forth by the Internal Revenue Service (IRS) regarding which costs companies may deduct.
Learn more about cash flows with the help of the given link:
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Answer:
a. Daniel must recognize $300 interest income for 2017 and a $200 gain on the sale of the bond in 2018
Explanation:
Since the interest was collected of $600 and the accrued interest is $300, so the remaining amount $300 reflect the interest income
And, the sale value of the bond is $10,200 without considering the interest collection and its purchase price without considering the accrued interest is $10,000. So, after comparing the purchase price and the sale price the gain of $200 would be determined
$10,200 - $10,000 = $200
Answer:
The answer is B. value delivery
Explanation:
Value delivery is the manner in which products are designed in order to give maximum value to the customer using it. Anything which creates value for customers should be included in the value adding process.The more happy customers a business creates, the more likely it is that those customers will purchase from the company again.