Answer:
Market rate of return is 7.79%
Explanation:
The market rate of return on the stock can be computed using the market price of the stock , which is given below:
share market price =D1/(Expected market return-Dividend growth rate)
share market price is $28.16
D1 is the expected dividend next year which is given by $1.35
expected market return is the unknown
dividend growth rate is 3%
$28.16=$1.35/expected market return-3%
let y be the expected market return
$28.16=$1.35/y-3%
by cross multiplication the equation becomes
$28.16*(y-3%)=$1.35
y-3%=$1.35/$28.16
y=($1.35/$28.16)+3%
y=7.79%
Answer:
7.794%
Explanation:
We can use the Gordon growth model to determine the price of the stock:
current stock price = next year's dividend / (market rate of return - growth rate)
$28.16 = $1.35 / (market rate - 3%)
market rate - 3% = $1.35 / $28.16 = 4.794%
market rate = 4.794 + 3% = 7.794%
*the market rate of return is equal to the required rate of return (RRR)
Answer:
c. matching principle
Explanation:
In accounting, one of the underlying principles is the matching concept which requires that a company reports the expenses in the statement of profit or loss along with the related revenue earned in the same period.
It seeks to ensure that expenses are matched to the revenue generated from the activities that resulted in the company incurring such expense.
Hence the matching principle requires that the costs incurred to generate a particular revenue should be recognized as expenses in the same period that the revenue is recognized.
b. achieving political and economic unity
Answer:
B) achieving political and economic unity
Explanation:
The goals of mercantilism were to increase the wealth of the government (accumulate gold and silver) by controlling economic affairs, and ultimately increasing the power of the nation (both economic and military). You must remember that mercantilism was popular during the 17th and 18th century when democracy didn't exist, and the Kings and Queens were eager to increase their personal wealth, power and greatness.
Answer:
Yes, I agree with Burry's reasoning because investing is something one learn overtime to perfect, in their own particular way. Being a good and successful investor, one should have a combination of factors such as the ability to analyse the market health, keep up to date with what is going on in the world, and may other knowledge. Different successful investors have different skills and ability to invest in their field of business that they took time to practice until they become good in their investing journey.
Answer:
$1,000
Explanation:
Beginning balance in supplies account = $200
The supplies account is an asset account and ordinarily should have a debit balance. If additional supplies of $1,400 were purchased during the month, it goes into the account as a debit.
If at the end of the month, only $600 of supplies was still on hand total supplies expense
$200 + $1,400 - supplies expense = $600
supplies expense = $200 + $1,400 - $600
= $1,000
The supplies expense is debited when supplies are used and the corresponding credit goes to the supplies account.