If Inez is not satisfied with the painting by Josh, Inez does not have to accept the portrait or pay Josh any money. Inez does not have to pay Josh at all.
1.A.The mission of the System
2.C.Losses
3.B.Operational Characteristics
Answer:
Option (d) is correct.
Explanation:
Given that,
Sales = $1,340,000
Gross margin = $460,000
Net operating income = $54,846
Net income before taxes = $41,846
Net income = $27,200
Gross margin percentage is calculated by dividing the gross margin with sales.
Gross margin percentage:
= (Gross margin ÷ Sales
) × 100
= (460,000 ÷ 13,40,000) × 100
= 34.3 % (Approx)
Answer:
the estimated price of the stock in 5 years, using the Dividend Discount Model is $216.38
Explanation:
The calculation of the estimated price of the stock in 5 years is given below:
= 5th Year dividend ÷ (Required return - Growth Rate)
Dividend at year 5 should be
=Dividend at year 0 × (1 + Growth Rate)^5
= $8.69 × (1.061)^5 ÷ (0.11.5 - 0.061)
= $216.38
Hence, the estimated price of the stock in 5 years, using the Dividend Discount Model is $216.38