Answer:
c.the expected future returns must be equal to the required return.
Explanation:
When the stock is at equilibrium than the intrinsic value of the stock is equivalent to the market price of the stock that depicts that the expected returns which held in the future should be equivalent to the required return
Therefore the option c is correct
And, the other options that are mentioned in the question are incorrect
Answer:
1. October 1
Dividends (Cr) 1950
Dividend Payable (Dt) 1950
2. October 15
No journal entry required
3. Record the payment of cash dividends
Dividend Payable (Cr) 1950
Cash (Dt) 1950
Explanation:
(<em>3,900 shares of common stock outstanding</em>) *(<em>declared $0.50 per share dividend</em>) = 1950
Answer:
Explanation:
According to the Kai surf shop in Laie, Hawaii, below is the computation of sales and use tax of surf shop that must collect or remit.
A.
Kai doesn't have a sales tax nexus with Utah, therefore it will not have any sales tax liability. Instead, Kalani will have a tax liability in Utah that will be $63($1000 x 6.85%).
B.
kai will have a tax liability of $83($2000 x 4.166%) Also, Nick will have use tax liability of $87[($2000 x (9% - 4.166%)].
C.
Kai doesn't have a sales tax nexus with Michigan, therefore it will not have sales tax liability. Instead, Jim will have a use tax liability in Michigan will be $140($2000 x 6%)
D.
Sales and use tax is not imposed on sale of services. Therefore, neither Kai nor Scott will have any sales or use tax liability.
Answer:
$22
Explanation:
According to the FINRA 5% Policy the mark-down if the customer sell must always be calculated from the inside bid price which is here $22 and if the customer is a buyer then the mark-up must be calculated using the inside ask price which is here $23. As the customer here is seller, hence the inside bid price $22 was appropriate here according to the FINRA 5% policy.
FINRA 5% policy says that the broker can not charge commissions, or markups or markdowns which is more than 5% on standard trades.
So the commission of $2 ($23-$21) is not allowed under this rule hence the appropriate price for the stock must be $22 not $21.
Answer:
D. chooses its output to manipulate the follower to produce the output that most benefits the leader.
Explanation:
Strackelberg model is one where a market leader makes the first move and then the other followers firms follow sequentially.
For this model to be successful, the followers need to observe the leader and follow their lead in a production process or venture.
The market leader usually has an advantage that enables it make the first move.
For example a firm that has a monopoly in a market leads while new entrants follow.
In this model the market leader chooses an output and manipulates the followers to produce the same output, and this benefits the leader
