Answer:
The intrinsic value per year would be $52.5
Explanation:
We use the gordon model for stock valuation:
current year dividends dividends x (1 + rgowth) = next year dividends
$2 * ( 1 + 0.05 ) = 2.10
then:
rate = 0.09
growth = 0.05
2.10/(0.09-0.05) = 52.5
Answer:
Credited
Explanation:
Equity Account <em>increase</em> on the credit side and <em>decrease </em>on the debit side.
So, when the account increased, we say it has been credited. This means further stock has been issued to new or existing owners.
Balance Sheet
Assets
Current Assets
Cash 37200
Accounts Receivable 36300
Less: Allowance for Doubtful Accounts (5000) [Computation: 36300-31300)
Supplies 3600
Total Current Assets 72100
Property, Plant, and Equipment
Land 17600
Building 75100
Equipment 47200
Total Property, Plant, and Equipment 139900
Total Assets $212000
Liabilities
Long term Liabilities
Mortagage Payable 19900
Owner's Equity
Terry, Capital 55200
Nick, Capital 72800
Frank, Capital 64100
Total Owner's Equity 192100
Total Liabilities and Owner's Equity $212000
Answer:
d. 2,854.05 shares
Explanation:
$74,000/22,000 = [$74,000 − 128,000(.075)]/X
X = 19,145.94 shares
Shares repurchased = 22,000 − 19,145.94
Shares repurchased = 2,854.05 shares
Answer:
Credit the buyer $347.22, debit the seller $347.22
Explanation:
The journal entry is shown below:
Seller Dr $347.22
To Buyer $347.22
(Being the entry is recorded)
The computation is shown below:
We assume the starting month is from January to May 5
So the total number of days calculated till May 5 is
= 31 days in January + 28 days in February + 31 days in March + 30 days in April + 5 days in May
= 125 days
Now the amount is
= $1,000 × 125 days ÷ 360 days
= $347.22