Policy 1: The price at the end of year 4 is calculated as D5/(rs-g) = 3 /(.12-.02) = 3/.10 = $30 per share. The current price is determined using PVF12%,4* Price at year 4 =.63552 * 30 = $19.07 per share. Policy 2: The price at the end of year 4 is D5/(rs-g) = 2 /(.12-.06) = 3/.06 = $50 per share. The current price is then calculated as PVF12%,4* Price at year 4 =.63552 * 50 = $31.78 per share. Policy 2 should be favored as it offers a higher market price per share.
Answer:
a. Ensure every sub-point is distinct
f. Break the main topic into significant parts
Explanation:
An outline serves as a form of a content table, aiding readers in grasping the article's overall message. Creating an effective outline can be tough. Here are some elements that can enhance an outline's efficiency.
Placing the main idea in the title is crucial. Below the title, partition the topic into significant segments (Option F). Utilizing sub-points makes the content more relevant (Option A). Moreover, merging sub-points into larger sections improves the article's appeal (Opposite of Option B). Avoid separating the main topic from the title; this may render the outline confusing (Opposite of Option D).
The purpose of the closing entries is to transfer account balances to the permanent records, moving all income statement balances into retained earnings.
Common stock - $9000
Dividends - $800
Service revenue - $13,000
Wages Expenses - $8,400
Rent Expenses - $1,600
Closing Entries
Particulars Dr Cr
Income Summary $10,000
Wages Expenses $8,400
Rent Expenses $1,600
Service Revenue $13,000
Income Summary $13,000
Income Summary $3,000
(13000-10000)
Retained Earnings $3,000
Retained Earnings $800
Dividends $800
Sidewinder, Inc., has sales of $634,000, costs of $328,000, depreciation expense of $73,000, interest expense of $38,000, and a
arsen [3447]
Answer:
$154,050
Explanation:
The following shows how net income for the business is calculated:
Total Sales $634,000
Subtract: costs -$328,000
Subtract: depreciation -$73,000
EBIT -$233,000
Subtract: interest -$38,000
EBT 195,000
Subtract: tax(195,000 × 21%) -$40,950
Net income $154,050
The calculation involves deducting all costs, interest, and taxes from the total sales revenue to arrive at the net income.
Answer:
The urgency or possibility of postponement results in an inelastic demand for ice melt by customers.
Explanation:
Demand elasticity indicates how much the demand for a product changes in response to a price shift. The formula is % change in demand / % change in price
Factors that influence the price elasticity of demand include the type of product, income level, availability of substitutes, time frame, urgency or potential for delay, and proportion of total spending.
Inelastic demand occurs when changes in demand are less proportional relative to price changes. % change in demand < % change in price
Case 'Customer urgently requires ice melt to commute to work': This situation reflects inelastic demand, meaning demand does not significantly change with price alterations (he will purchase it even at a higher cost). This is due to the pressing nature of the demand and limited possibilities for postponing it.
