Answer:
e. None of these options.
Explanation:
When stock prices adhere to a random walk, today's price correlates to the previous period's price plus the anticipated return for that period, with any remaining variance reflecting the actual return attributable to: "new information linked to the stock". This occurrence transpires because any fresh information concerning the stock that doesn't relate to historic prices will result in an adjustment of the stock's price over time.
File sharing refers to the distribution of digital content to others. This content may include applications, multimedia files such as music and videos, or even eBooks. While some forms of file sharing may be restricted, it’s not universally banned. Users can share files among peers unless explicitly prohibited. Therefore, it's wise to avoid sharing files to prevent breaching copyright laws held by the file's owner.
Answer:
Lopez Sales Company
1. The gross margin recorded by Lopez is as follows:
Sales total = $81,600
Deducting cost of sales = $38,400
Gross Margin = $43,200
2. The gain on the land sale recognized by Lopez amounts to:
Land details:
Selling price = $81,000
less cost = $43,200
Gain on sale = $37,800
Explanation:
a) The gross margin represents the difference between the selling price and the cost price of a good. It indicates profit prior to accounting for operational expenses to determine net income or margin.
It gauges whether the business can generate sufficient income to meet typical operating costs such as rent, utilities, and employee wages.
b) The gain from the sale of any capital asset is the difference between the selling price and the book value (cost). Such a gain is separately presented in the income statement and may be subject to capital gains tax.
Answer:
P14 = $55.69545045394 rounded to $55.70
Explanation:
The dividend discount model (DDM) based on constant growth can help determine the current stock price. It assesses a stock’s price using the present value of the anticipated future dividends. The formula for determining today's price with a constant growth DDM is,
P0 = D1 / (r - g)
Where,
- D1 represents the expected dividend for Year 1 or the following year
- g denotes the constant growth rate for dividends
- r signifies the discount rate or the required rate of return
To find the stock price today, we will utilize the dividend expected in Year 1. Consequently, to compute the stock price 14 years into the future, we calculate D15. D15 can be figured out as follows,
D15 = D1 * (1+g)^14
D15 = 0.50 * (1+0.09)^14
D15 = $1.67086351362 rounded to $1.67
Now applying the DDM formula for the price,
P14 = 1.67086351362 / (0.12 - 0.09)
P14 = $55.69545045394 rounded to $55.70
