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iragen [17]
3 years ago
8

A reduction in a provision for doubtful debts is recorded by

Business
1 answer:
Amiraneli [1.4K]3 years ago
7 0

Answer:

A business typically estimates the amount of bad debt based on historical experience

Explanation:

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What happen during periods of hyperinfation?
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The value of money decreases rapidly
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3 years ago
Caliber Corp. currently pays no dividends because it requires its internally generated funds be used to fund a research intensiv
Andreyy89

Answer:

Do =  $2.00

D1= Do(1+g)1 =  $2(1+0.2)1 = $2.40

D2= Do(1+g)2 = $2(1+0.2)2 = $2.88

D3= Do(1+g)3 = $2(1+0.2)3 = $3.456

D4= Do(1+g)4 = $2(1+0.2)4 = $4.1472

D5= Do(1+g)5 = $2(1+0.2)5 = $4.97664

PHASE 1

V1 = D1/1+ke + D2/(1+ke)2 + D3/(1+ke)3 +D4/(1+ke)4 + D5/(1+ke)5

V1 = 2.40/(1+0.15) + 2.88/(1+0.15)2 + 3.456/(1+0.15)3 + 4.1472/(1+0.15)4 + 4.97664/(1+0.15)5

V1 = $2.0870 + $2.1777 +  $2.2723 + $2.3712 + $2.4742

V1 = $11.3824

PHASE 2

V2 = DN(1+g)/ (Ke-g )(1+k e)n                                                                                                                                                                                                                                      

V2 = $4.97664(1+0.02)/(0.15-0.02)(1+0.02)5      

V2 = $5.0762/0.1435

V2 = $35.3742

Po = V1 + V2

Po = $11.3824 + $35.3742

Po = $46.76

Explanation: This is a typical question on valuation of shares with two growth rate regimes. In the first phase, the value of the share would be obtained by capitalizing the dividend for each year by the cost of equity of the company. The dividend for year 1 to year 5 was obtained by subjecting the current dividend paid(Do) to growth rate. The growth rate In the first regime was 20%.

In the second phase, the value of shares would be calculated by taking cognizance of the second growth rate of 2%. In this phase, the last dividend paid in year 5 would be discounted at the appropriate discount rate after it has been adjusted for growth.

5 0
3 years ago
Calculate the average growth rate. (Enter your answer as a percentage, rounded to 2 decimal places, using intermediate calculati
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Answer:

Growth rate is 6%

Explanation:

Po = \frac{D1}{r-g}

P  = 0.3 / (0.1 - 0.06)

P =  $75

Dividend growth model is used to calculate the stock price based on the dividend growth.

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2 years ago
​If the superior's job with a particular employee during a performance appraisal is simply to sit and listen and then have open
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I’m not sure about the first one (my best guess is B.) but the second one is A.
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Your grandfather invested $1,000 in a stock 36 years ago. currently the value of his account is $318,000. what is his geometric
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It would be 8,833.33 over the years
4 0
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