Yes because the definition of a product line is a group of products that are similar to each other and are also sold under the same brand.
Answer:
$710,000
Explanation:
For computing the cost of the goodwill, first we have to calculate the fair value of the net asset which is shown below:
The fair value of net asset = The fair value of Skysongâs assets - the fair value of liabilities
= $890,000 - $180,000
= $710,000
And, the acquired value of Skysong Enterprises for cash is $790,000
So, the goodwill would be
= $790,000 - $710,000
= $80,000
Answer:
c
Explanation:
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Answer:
The value of the Share of Zeke after the new Expansion is $25.
Explanation:
As there was no growth in the dividend before change, Price of the share from a stable dividend payment can be calculated by following formula.
Price = Dividend / Required rate of return
As we have the share price and the dividend amount we need to calculate the required rate of return.
Required rate of return = Dividend / Price
Placing value in the formula
Required rate of return = $2.50 / $25.00 = 0.1 = 10%
After New Expansion
Dividend = $1.50
Growth rate = 4%
The share price can be calculated by the dividend growth formula, as follow
Price of share = Dividend / (Rate of return - growth rate)
Price of share = $1.50 / (10% - 4%)
Price of share = $1.50 / 6%
Price of share = $25
Answer:
Market interest rate is also known as nominal interest rate. The nominal interest rate is sum of real interest rate and inflation rate. Fed try to control the monetary condition and real interest rates by manipulating money supply. These interest rates also affect the demand of money in market.
Part (a)
When commission of brokers decreases then buying and selling of stocks becomes easier and cheaper and people would transact in more and more stocks which will decrease the demand of money as liquidity of stock has increased.
Part (b)
When grocery store starts accepting credit cards then people would need to carry less cash and demand of money will decrease.
Part (c)
As financial investors are now worried about riskiness of stocks so they will decrease their investment in stocks and prefer holding more money so demand of money will increase.
