Answer:
The answer is $32.44
Explanation:
Solution
Given that:
Expected dividend = $3.10 and $2.44
Increase in annual dividend = 3.8%
The required return rate = 11.2%
Now what is the stock price as at today
Thus
The Present Value of Dividends = $ 3.10 * 1/(1.112) ^ 1 + $ 2.44 * 1/(1.112) ^ 2
= $4.76101133
The Price at Year 2 = Expected Dividend / ( Required Rate of Return - Growth Rate)
= ( 2.44 * 1.038) / ( 11.2% - 3.8%)
= $34.2259459459
So,
The Present Value of Price at Year 2 becomes:
= Price at Year 2 * 1/(1.112) ^ 2
= $34.2259459459 * 1/(1.112) ^ 2
= $27.67871256
Then,
The Current Price = Present Value of Price at Year 2 + Present Value of Dividend
= 27.67871256 + 4.76101133
= $32.44
Therefore the stock price today is $32.44
Studying products for similarities or differences is known as ______ shopping.
-Marginal
-Comparison
-Emotional
-Research
It's a form of research to look at products from different websites, but comparison means when you are comparing two things.
My answer would be B. Comparison
Studying products for similarities or differences is known as Comparison shopping. Option B. This is further explained below.
What is Comparison shopping.?Generally, Comparison shopping is simply a typical technique in which buyers check the prices of various things from several stores before making a purchasing choice.
In conclusion, Comparison shopping is the process of examining things for similarities and differences.
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_______regulation applies to specific industries, whereas _______economic social regulation applies to businesses throughout the economy. Governments commonly regulate the prices and quality of services provided by electric, gas, and other utilities, which traditionally have been considered____technological oligopolistic geographic natural monopolies. Governments also single out various nonmonopolistic industries, such as the financial and transportation industries, for special forms of ______ economic social regulation. Among the common forms of ____ economic social regulation covering all industries are the occupational, health, and safety rules that federal and state governments impose on producers.
Answer:
Economic; social; natural; economic; social.
Explanation:
Generally, economic regulation are only applicable to business firms or organizations in a specific industry while social regulation is generally applicable to all of the business firms established throughout the economy or country.
A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes. Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.
For example, a public power company is an example of a monopoly because they serve as the only source of power utility provider to the general public in a society.
Governments commonly regulate the prices and quality of services provided by natural monopolies.
The Occupational Safety and Health Administration (OSHA) is a federal agency saddled with the responsibility of assuring and ensuring safe and healthy working conditions for employees by setting and enforcing standards, providing education, trainings and assistance to various organizations.
Task: Now that you are about 50% completed with your course, I would like for you to take this time to reflect on your current grade. Your task is to:
1. Review your grade by looking up your Actual Grade and Progress.
2. Write a 3-4 sentence reflection piece on how you aim to continue thriving or how you will improve your grade. This
must be in complete sentences in order to recieve appropriate credit.
Once you have gathered your information, you will enter it below in paragraph form. Everything must be in complete sentences. Please check for any grammar and/or punctuation errors.
Answer:
I don't really think you need help with this but umm you can write after looking at your grade: *this is an example*
Explanation:
(For online)
"I would like to improve my grade by focusing more and not getting distracted. Another way I would like to improve my grade is where I can work without any noise. Lastly, I would like to improve my grade by turning off any electronics in sight or reach."
(Longer sentence with some grammar and/or punctuation errors checked):
"I would like to generally improve my grade by focusing kind of more and not getting distracted, particularly contrary to popular belief. Another way I would like to mostly improve my grade basically is where I can work without any noise, which specifically is quite significant. Lastly, I would like to kind of improve my grade by turning off any electronics in sight or reach, or so they for the most part though."
-------------------------------------------------------------------------------------------------------------
(For face to face school)
"I would like to improve my grade by asking the teacher for help when needed. Try and ignore my friends when they try and talk to me in class (if you're with friends), Try and ignore people around me if they talk to each other or if they talk to me (without friends). Focus on my work and take notes when asked or needed."
(Longer sentence with some grammar and/or punctuation errors checked):
"I would like to for the most part improve my grade by asking the teacher for particular help when needed, or so they definitely thought. Try and mostly ignore my friends when they for the most part try and definitely talk to me in class (if you're with friends), generally Try and basically ignore people around me if they really talk to each definitely other or if they, for the most part, talk to me (without friends), basically contrary to popular belief. Focus on my work and particularly take notes when for all intents and purposes asked or needed, demonstrating how literally try and for the most part ignore my friends when they mostly try and specifically talk to me in class (if you\'re with friends), actually Try and basically ignore people around me if they, for the most part, talk to each definitely other or if they actually talk to me (without friends), which particularly is fairly significant."
Lastly:
Good Luck!
Assume that at the end of 2017, Crane used $2,460 cash to pay off $2,460 of accounts payable. How would the current ratio and working capital have changed? (
There will be a decrease in the current ratio and no change in working capital when the cash is paid for the accounts payable.
What is current ratio?The current ratio is the ratio analytical tool that determines the position of an organization to fulfill the demands of its short-term capital and fund requirements during the current financial year or period.
The current ratio is negatively affected by the use of cash to pay the liabilities like payables and short term loans. However, there is no such effect on the working capital when cash is used for the same.
Hence, option A holds true regarding the effect on current ratio and the working capital of Crane is aforementioned. The complete question has been attached as an image for better reference.
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suppose the income of consumer increased from 8000 to10000 birr. because of the change in income, quantity purchased from10 units to 12 ,how much is the income elasticity of demand,what types of goods the consumer buys and consume, explain result
The income elasticity of demand is 0.8, indicating that the good is a normal good and consumers buy and consume more of it as their income increases.
How to calculate Income Elasticity of Demand?To calculate the income elasticity of demand, we use the formula:
Income Elasticity of Demand = (Percentage Change in Quantity Demanded) / (Percentage Change in Income)
Given that the income increased from 8000 to 10000 birr, which is a 25% increase, and the quantity purchased increased from 10 units to 12 units, which is a 20% increase, we can plug these values into the formula:
Income Elasticity of Demand = (20% / 25%) = 0.8
Since the income elasticity of demand is positive (0.8), we can conclude that the good is a normal good. Normal goods are those for which demand increases as income rises, indicating that consumers buy and consume more of the good as their income increases.
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WBS for the knowledge area of Human/Resource Management for a low-cost housing project
Here's an example of a WBS for the knowledge area of Human/Resource Management for a low-cost housing project:
The wbs for a knowledge area of Human/Resource Management for a low-cost housing projectHuman/Resource Management
1.1 Staffing Plan
1.1.1 Define project roles and responsibilities
1.1.2 Identify required staffing resources
1.1.3 Determine the project team structure
1.1.4 Develop a staffing plan and budget
1.2 Recruitment and Selection
1.2.1 Create job descriptions and specifications
1.2.2 Advertise and promote job openings
1.2.3 Review resumes and conduct initial screenings
1.2.4 Conduct interviews and select candidates
1.2.5 Perform background checks and reference checks
1.2.6 Extend job offers and negotiate terms
1.3 Training and Development
1.3.1 Assess training needs for project team members
1.3.2 Develop a training plan and schedule
1.3.3 Conduct training sessions and workshops
1.3.4 Provide on-the-job training and mentoring
1.3.5 Evaluate training effectiveness and adjust as needed
1.4 Performance Management
1.4.1 Set performance expectations and goals
1.4.2 Monitor and assess individual and team performance
1.4.3 Provide feedback and coaching to improve performance
1.4.4 Conduct performance appraisals and evaluations
1.4.5 Identify and address performance issues or conflicts
1.5 Resource Allocation
1.5.1 Identify project resource requirements
1.5.2 Allocate resources based on project needs
1.5.3 Monitor resource utilization and availability
1.5.4 Optimize resource allocation to meet project objectives
1.6 Stakeholder Management
1.6.1 Identify project stakeholders and their interests
1.6.2 Develop a stakeholder engagement plan
1.6.3 Communicate and manage stakeholder expectations
1.6.4 Address stakeholder concerns and resolve conflicts
1.6.5 Maintain positive relationships with stakeholders
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Advise business on the role of intermediaries in the distribution process.
Intermediaries, in business and marketing, are those that act as a middleman between the producer and the consumer. The role of intermediaries in the distribution process of goods and services is to ensure that products and services are moved from the producer to the consumers.
There are several types of intermediaries in the distribution process, including wholesalers, retailers, agents, and brokers. They play a crucial role in the distribution process in the following ways:
Assist in Sorting and Selection: Intermediaries help producers to sort and select their products, which saves time and money for producers.Assist in Breaking Bulk: Intermediaries buy goods in large quantities from producers and then break them into smaller quantities. This makes it possible for producers to sell their products in smaller quantities, making it possible for consumers to afford them.Helps in Transporting Goods: Intermediaries help in transporting products from producers to consumers by offering transportation services at lower costs. They also assist in the warehousing of goods, which helps in the storage and protection of goods.Assist in Financing: Intermediaries play an important role in financing. They buy goods from producers, hold them, and then sell them to consumers. This helps to reduce the risk of loss for producers by providing cash up front for goods sold. They also offer credit facilities to consumers, which makes it possible for them to buy goods without having to pay cash upfront.Help in Providing Information: Intermediaries help to provide information about products and services to consumers, making it easier for them to make informed decisions. They also help to provide feedback to producers about the quality of their products and services.For more such questions on marketing
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what is a bond? in your own words. financially.
Answer: to me a bond is a very close friendship that is official and that is well known to the world
Explanation:
Discuss why positive thinking is critical in starting the entrepreneurship journey
what is the difference between need and want?
answer:
wants are desires for goods and services we would like to have but do not need. needs are a special kind of want, and refer to things we must have to survive, such as food, water, and shelterexplanation:
credits: online researchTrade-Off Theory. Smoke and Mirrors currently has EBIT of $25,000 and is all-equity- financed. EBIT is expected to stay at this level indefinitely. The firm pays corporate taxes equal to 35% of taxable income. The discount rate for the firm’s projects is 10%.(LO3)
a. What is the market value of the firm?
b. Now assume the firm issues $50,000 of debt paying interest of 6% per year, using the proceeds to retire equity. The debt is expected to be permanent. What will happen to the total value of the firm (debt plus equity)?
c. Recompute your answer to (b) under the following assumptions: The debt issue raises the probability of bankruptcy. The firm has a 30% chance of going bankrupt after 3 years. If it does go bankrupt, it will incur bankruptcy costs of $200,000. The discount rate is 10%. Should the firm issue the debt?
Answer:
a. What is the market value of the firm?
$162,500b. Now assume the firm issues $50,000 of debt paying interest of 6% per year, using the proceeds to retire equity. The debt is expected to be permanent. What will happen to the total value of the firm (debt plus equity)?
$200,123c. Recompute your answer to (b) under the following assumptions: The debt issue raises the probability of bankruptcy. The firm has a 30% chance of going bankrupt after 3 years. If it does go bankrupt, it will incur bankruptcy costs of $200,000. The discount rate is 10%. Should the firm issue the debt?
The firm should not issue the debt because the risk of bankruptcy eliminates any possible gains obtained from issuing debt. It actually decreases the value of equity.Explanation:
the firm's current value = [EBIT x (1 - tax rate)] / WACC = [$25,000 x 0.65] / 10% = $162,500
firm's new WACC = ($112,500/$162,500 x 10%) + ($50,000/$162,500 x 6% x 0.65) = 6.92% + 1.2% = 8.12%
the firm's new value = [$25,000 x 0.65] / 8.12% = $200,123
expected cost of bankruptcy = (30% x $200,000) / 1.1³ = $45,079
firm's total value is still $200,123, but the stockholders' equity has been reduced from ($200,123 - $50,000 = $150,123) to $150,123 - $45,079 = $105,044
the gain from issuing debt will be eliminated due to the risk of bankruptcy, before equity had risen from $112,500 to $150,123, but now it decreases to $105,044.
The market value of the firm will be $162500.
Based on the information given, the market value will be calculated thus:
= [EBIT × (1 - Tax rate(] / WACC
= [25000 × (1 - 0.35)] / 10%
= [25000 × 0.65] / 0.10 = $162500
Since the firm's new WACC is 8.12%, then the new value of the firm will be:
= (25000 × 0.65) / 8.12%
= 200,123
Therefore, the total value of the firm is $200,123.
In conclusion, the firm should not issue the debt due to the fact that the risk of bankruptcy will eliminate the gains gotten from the issuance.
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What form of capital can eskom obtain
Eskom can obtain basically two major types of capital. They include the following.
equitydebtThese two forms of capital are very crucial in the financial sector of the company. It is important to note that both capital and debt are equally relevant to the government because the government is the primary shareholder and Eskom depends hugely on the support it gets from the government. this support may be in the form of loans or equity or guarantees.
What is Equity?Equity is a financial terminology that describes the ownership of assets that may have debts or other liabilities attached to them.
To ascertain equity in accounting, you have to subtract the liabilities from the value of the assets.
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Between January 2010 and January 2016, U.S. employment increased by 12.1 million workers, but the number of unemployed workers declined by only 7.3 million. True or False: The labor force has remained unchanged.
Answer:
False, the labor forced increased
Explanation:
labor force = total number of people actively working (employed) or searching for jobs (unemployed)
lets say L = the total labor force in 2010
by 2016, L had increased by 12.1 million and decreased by 7.3 million
net change of L = 12.1 - 7.3 = 4.8 more million people were part of the labor force in 2016 than in 2010.
On January 1, 2021, the Moody Company entered into a transaction for 100% of the outstanding common stock of Osorio Company. To acquire these shares, Moody issued $400 in long-term liabilities and also issued 40 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Moody paid $20 to lawyers, accountants, and brokers for assistance in bringing about this acquisition. Another $15 was paid in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows:
Moody Osorio
Cash $180 $40
Receivables 810 180
Inventories 1,080 280
Land 600 360
Buildings (net) 1,260 440
Equipment (net) 480 100
Accounts payable (450) (80)
Long-term liabilities (1,290) (400)
Common stock ($1 par) (330)
Common stock ($20 par) (240)
Additional paid-in capital (1,080) (340)
Retained earnings (1,260) (340)
Note: Parentheses indicate a credit balance.
In Moody's appraisal of Osorio, three assets were deemed to be undervalued on the subsidiary's books: Inventory by $10, Land by $40, and Buildings by $60. Compute the amount of consolidated inventories at date of acquisition.
A. $1,080.
B. $1,420.
C. $1,065.
D. $1,425.
E. $1,440.
Answer:
$1,370
Explanation:
IFRS 3 states that Acquirer is deemed to have taken over the Assets and Liabilities at their Acquisition Fair Value in Acquired records.
Therefore,
We need to first revalue the Inventory shown in Osorio records upwards by $10.
Then we combine 100% of Moody`s Inventory with 100% of Osorio fair valued Inventory.
Calculation of Consolidated Inventory Balance
Moody`s Inventory $1,080
Osorio fair valued Inventory (280 + 10) $290
Inventory Balance $1,370
Why is it important for every person to keep track of their earnings and spending patterns?
The income statement of Sheridan Company for the month of July shows net income of $3,480 based on Service Revenue $7,890, Salaries and Wages Expense $2,860, Supplies Expense $940, and Utilities Expense $610. In reviewing the statement, you discover the following:
1. Insurance expired during July of $470 was omitted.
2. Supplies expense includes $410 of supplies that are still on hand at July 31.
3. Depreciation on equipment of $150 was omitted.
4. Accrued but unpaid wages at July 31 of $320 were not included.
5. Service performed but unrecorded totaled $640.
Prepare a correct income statement for July 2014.
Answer:
what do u want from me monq I told you bye so bye mean bye
To address a rise in inflation, a government may
A. invest in programs like unemployment benefits to help people in
need.
B. reduce the amount of money it puts into circulation.
C. lower interest rates to allow businesses to borrow more money.
D. raise interest rates to allow businesses to borrow more money.
It should be B. I took the quiz.
To address a rise in inflation, a government may reduce the amount of money it puts into circulation.Thus the correct answer is B.
What is inflation?When the prices of goods and services increase during a given period of time which affects the purchasing parity of individuals is known as inflation. This results in an increase in the cost of living in the country as the price rise and gives rise to economic inequality.
To address a rise in inflation, a government may reduce the amount of money it puts into circulation which results in a fall in the prices of goods and services and reduce the inflation rate.
Therefore, option B is appropriate.
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Which of the following best explains why a country might specialize in the production of a good?
O Consumers in the country only demand a single good.
O The country believes it is generally better to do one thing really well than multiple things.
The country cannot produce other goods and services.
Specialization allows the country to exchange for more of other goods than it could produce.
The best explanation for why a country might specialize in the production of a good is specialization allows the country to exchange for more of other goods than it could produce (option D).
Specialization in the production of a particular good enables a country to take advantage of its available resources, labor, and technology to produce that good more efficiently and at a lower cost compared to other countries. As a result, the country can sell its specialized good to other countries in exchange for other goods that it needs but cannot efficiently produce on its own.
For example, if a country specializes in the production of coffee, it can produce coffee beans at a lower cost and higher quality than other countries due to its favorable climate and available resources. The country can then trade its coffee for other goods that it cannot produce as efficiently, such as electronics or machinery.
Specialization also leads to increased productivity and efficiency, as workers can focus on producing a specific good and become highly skilled in that area. This can lead to technological advancements and innovations, which can further improve production efficiency and competitiveness in the global market.
In conclusion, specialization allows a country to leverage its strengths in the production of a specific good, trade it for other goods it needs, and increase productivity and competitiveness.
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An increase in income is always possible with out increasing expenses.
O True
False
In your own words, explain what opportunity cost is? Did you know about this concept? Give an example.
Answer:
A student spends three hours and $20 at the movies the night before an exam. The opportunity cost is time spent studying and that money to spend on something else. A farmer chooses to plant wheat; the opportunity cost is planting a different crop, or an alternate use of the resources (land and farm equipment).
Explanation:
PLEASE HELP WILL GIVE BRAINLIEST FOR CORRECT ANSWER!!
For a Brazilian firm, the process of exporting to
international markets may
include all of the
following except
A). export-import agent.
B). draft.
C). bill of lading.
D). letter of credit.
E). import tariff.
Answer:
import tariff is the answer
Answer:
e
Explanation:
it is a terrif that pays
The appropriate section in the statement of cash flows for reporting the receipt of cash dividends from investments in securities is: Group of answer choices Operating activities. Financing activities. Investing activities. Schedule of noncash investing or financing activity. This is not reported on the statement of cash flows.
Answer:
Operating activities
Explanation:
In the case when there is a receipts of the cash dividend from the investment securities held so the same would be shown in the operating activities section of the cash flow statement as the cash inflow as the cash is coming also it would be shown in the positive amount
Therefore the first option is correct
Which word names the way the different parts of language are arranged?
Gramma
Pronunciation
Structure
Diction
for each item, select the principle of self-management that the example best represents. 1. hugo says he wants to retire in 20 more years with enough saved in retirement to draw 60 percent of his current monthly income until he is 95 years old. A: Identify your wildly important long-term goal
B: Break your wildly important goal into short-term goals
C: Make a to-do list for accomplishing your short-term goals
D: Prioritize the tasks
The best principle of self-management that represents Hugo's statement is A: Identify your wildly important long-term goal.
This principle involves defining your long-term goals and making them your top priority. Hugo's statement indicates that he has identified his long-term goal of retiring in 20 years with a specific income requirement until he is 95 years old. By identifying this goal, he can focus his efforts on achieving it and avoid getting sidetracked by less important tasks. This principle also involves creating a clear vision of what you want to achieve, which Hugo has done by specifying the income he wants to have during his retirement. Overall, identifying a wildly important long-term goal is a critical first step in effective self-management.
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On September 30, 2024, the company paid its landlord $12,400 representing rent for the period September 30, 2024, to September 30, 2025. Digital Controls debited prepaid rent at the time the rent was paid.
The journal entries to record rent and prepaid rent at September 30, 2024 are:
Direct Debit: Prepaid Rent $12,400
Credit: $12,400 cash
This journal shows that the company paid $12,400 in cash, which is a current asset, and prepaid rent, which is an asset. Prepaid rent indicates that the organization has paid rent in advance for the next year from September 30, 2024 to September 30, 2025.
Over time, the prepaid rent account is increased each month by recording an adjustment representing the amount of rent "used" for that month. At the end of the year, the prepaid rent account has a balance of $0 and rent expense is recorded for the entire year.
review the 60 Minutes video on Mark Zuckerberg
The person name and their position at the company
Examples of how their leadership style or qualities impact employee performance and morale
The leader's leadership style has an impact on group performance and goal achievement since it influences employee behavior.
What is leadership about?A leader's leadership style relates to how he or she directs, motivates, and manages others. A person's leadership style also influences how they strategize and implement plans while keeping stakeholders' expectations and the well-being of the team in mind.
Managers are in charge of guaranteeing team success, fostering a pleasant environment, and solving challenging problems. It motivates people to work harder and see their leaders as more effective.
Effective leadership requires strong communication, inclusiveness, and empowerment, and it has a beneficial effect on morale. A team's morale will rise when communication from the top to the bottom improves under competent leadership.
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The 15-year average return for the S&P 500 from January 1973 to December 2016 (29 separate 15 year periods) was as high as a 20% average annual return and as low as a 3.7% average annual return. Additionally, the average dividend yield for the S&P is 4.11% and the average annual dividend growth rate is 6.11%.
Using this information, please compare the investment in the 5% 15-year corporate bond with a $100,000 investment in a stock with a 3.7% dividend yield (10 percent less than the S&P 500 average yield) and a 3% dividend growth rate (50 percent of the S&P 500 dividend growth rate).
The annual investment returns are as follows:
Year 1 (13.40%) Year 2 (23.37%) Year 3 26.38% Year 4 8.99%
Year 5 3.00% Year 6 13.62% Year 7 3.53% Year 8 (38.49%)
Year 9 23.45% Year 10 12.78% Year 11 0.00 Year 12 13.41%
Year 13 29.60% Year 14 11.39% Year 15 (0.73%)
The bond interest payment of 5 percent is paid annually and not reinvested. To compare accurately with the bond investment, the stock dividend will not be reinvested, but paid annually as well.
Please calculate the value of the stock account at the end of each year and the dividend income from the stock on an annual basis.
Once you have performed the calculations, please let me know if you prefer to invest in a 5% corporate bond for 15 years or the stock and why.
What is the value of the stock after year 2? Year 8? Year 11? When does the annual dividend income of the stock exceed the annual interest income of the bond?
1. The value of the stock account after Year 2 is $155,401.626.
2. The value of the stock account after Year 8 is $96,110.0674.
3. The value of the stock account after Year 11 is $96,110.0674.
4. The annual dividend income of the stock exceeds the annual interest income of the bond at the end of Year 15.
Bond interest rate: 5%
Stock dividend yield: 3.7% (10% less than S&P 500 average yield)
Stock dividend growth rate: 3% (50% of S&P 500 dividend growth rate)
We'll assume an initial investment of $100,000.
Year 1:
Bond interest income: $100,000 * 0.05 = $5,000
Stock dividend income: $100,000 * 0.037 = $3,700
Value of stock account: $100,000 + ($100,000 * 0.2337) = $123,370
1. Year 2:
Bond interest income: $100,000 * 0.05 = $5,000
Stock dividend income: $100,000 * 0.037 = $3,700
Value of stock account: $123,370 + ($123,370 * 0.2638) = $155,401.626
2. Year 8:
Bond interest income: $100,000 * 0.05 = $5,000
Stock dividend income: $100,000 * 0.037 = $3,700
Value of stock account: $155,401.626 + ($155,401.626 * (-0.3849)) = $96,110.0674
3. Year 11:
Bond interest income: $100,000 * 0.05 = $5,000
Stock dividend income: $100,000 * 0.037 = $3,700
Value of stock account: $96,110.0674 + ($96,110.0674 * 0) = $96,110.0674
4. At the end of Year 15, the dividend income of the stock exceeds the interest income of the bond.
Stock dividend income: $100,000 * 0.037 = $3,700
Bond interest income: $100,000 * 0.05 = $5,000
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At 31 December 20X1, Tina owned equipment which had cost $168,500. At that date $66,500 had been charged in respect of depreciation. Tina's accounting policy is to charge depreciation on equipment at a rate of 25% on the reducing balance basis. What is the depreciation charge to be included in Tina's statement of profit or loss for the year ended 31 December 20X2?
The amount of depreciation charge to be included in Tina's statement of profit or loss for the year ended 31 December 20X2 is $25,500
We need to calculate the depreciation charge for the year using the accounting policy of charging depreciation at a rate of 25% on the reducing balance basis. The reducing balance method applies the depreciation rate to the carrying amount of the equipment at the beginning of the year, which means that the depreciation charge reduces each year as the carrying amount decreases.
Using this method, the depreciation charge for the year ended 31 December 20X2 can be calculated as follows:
Carrying amount at beginning of year: $102,000
Depreciation rate: 25%
Depreciation charge for the year: $25,500 ($102,000 x 25%)
Therefore, the depreciation charge to be included in Tina's statement of profit or loss for the year ended 31 December 20X2 is $25,500.
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Dion has created a SWOT analysis for his business plan. In which section of his business plan will he place his analy
О А.
OB.
0 с.
OD. marketing and sales
executive summary
company description
market research
Reset
Next
In a case whereby Dion has created a SWOT analysis for his business plan the section of his business plan that he will place his analysis is company description.
What is SWOT analysis?The SWOT analysis is an important tool for evaluating the internal and external factors that affect a business. By identifying its strengths and weaknesses, a company can determine how to capitalize on its advantages and improve its weaknesses. By identifying opportunities and threats, a company can develop strategies to take advantage of market trends and mitigate risks.
Therefore, Dion's SWOT analysis will help readers of the business plan to understand the strengths, weaknesses, opportunities, and threats of his business, and how he plans to leverage these factors to achieve his goals.
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The following pricing estimates are available for the various levels of demand: Demand level (units) 150 200 250 300 Selling price per unit (R) 15 000 14 000 13 000 12 000 Additional information: a. The total costs which are considered to be fixed are estimated at R350 000 per annum. b. The variable cost per unit is estimated at R10 000. 3. Return to this screen and click the link above the red arrow to open the Discussion tool. 4. In a new thread: a. Enter a suitable title in the subject field; b. Highlight and discuss the various factors that SA-Bots should consider when setting their prices; c. Explain what a market penetration strategy is; d. Discuss market penetration as a suitable pricing strategy for SA-Bots; e. Calculate the optimum price and output level, based on the information provided.
When setting prices, SA-Bots should consider several factors to ensure their pricing strategy is effective and aligns with their business goals and market conditions. The following factors are important to consider: Cost Structure, Competitive Analysis, Customer Demand and Elasticity, Market Penetration Strategy.
Cost Structure: SA-Bots should analyze their fixed and variable costs to determine the minimum price required to cover expenses and generate a profit. Understanding the cost per unit helps in setting a baseline for pricing decisions.
Competitive Analysis: SA-Bots should assess the pricing strategies of their competitors to position their products effectively. It is crucial to consider how their prices compare to similar offerings in the market and identify unique value propositions that can justify higher prices.
Customer Demand and Elasticity: Understanding customer demand and price elasticity is essential. SA-Bots should consider how sensitive customers are to changes in price and adjust pricing accordingly. Higher prices may be feasible if the product or service offers significant value or has a unique selling proposition.
Market Penetration Strategy:
A market penetration strategy involves setting lower prices to enter a new market or gain a larger market share. It aims to attract customers with competitive pricing, increasing sales volume and capturing market share.
Market Penetration Strategy for SA-Bots:
Market penetration can be a suitable pricing strategy for SA-Bots if their goal is to quickly establish a presence and gain market share. By setting lower prices, they can attract price-sensitive customers and build a customer base. However, it is important to ensure that the lower prices are sustainable and still cover costs.
Calculating Optimum Price and Output Level:
Based on the given information, we can calculate the contribution margin per unit, which is the selling price per unit minus the variable cost per unit:
Contribution Margin = Selling Price per Unit - Variable Cost per Unit
For each demand level, we can calculate the contribution margin and use it to determine the optimum price and output level:
Demand Level (units) | Selling Price per Unit (R) | Contribution Margin (R)
150 | 15,000 | 5,000
200 | 14,000 | 4,000
250 | 13,000 | 3,000
300 | 12,000 | 2,000
To calculate the optimum price and output level, we need more information such as demand elasticity and production capacity. With the given data, we can observe the contribution margin decreases as the selling price per unit decreases. SA-Bots should analyze the market dynamics, demand forecasts, and their business objectives to determine the optimal price and output level that maximizes profitability and market penetration.
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