Consider Country (Z) with a GDP level of 210,000 and a growth rate of 5% in 2019 (i.e. calculated at the end of year 2019). The experts predict that the growth of the economy of Country (Z) wills gradually slowdown in the coming years. More precisely, they foresee the following growth rates for the future: 2019 – 2022 (5%), 2022 – 2025 (3%). Hint: The list above should be read as saying that, for instance, `the growth rate from the end of 2019 until the end of 2022 will be 5%, then from the end of 2022 until the end of 2025 it will be 3%’ and so on. Requirement a) Assuming that the predictions of the experts listed above are accurate, when in the future will Country Z’s GDP double compared to the GDP level of 2019? [10 marks] b) What would Country Z’s GDP growth rate be from 2025 and so on at 1%? Explain your reasoning carefully. [5 marks] c) Consider now the more optimistic scenario in which the economy does not slow down and the current growth rate of 5% remains constant in the coming years. How long will it take for the GDP level to double in this scenario? Express your answer in two forms: i) In number of years [5 marks] ii) As a fraction of your answer in part a. [5 marks]

Answers

Answer 1

Answer:

Country (Z) GDP Growth:

a) The GDP will double in:

2019 - 2022 = 3 years

2022 - 2025 = 3 years

2025 to 20 years as determined below

Total = 26 years

The GDP will double in 26 years.

b) The growth rate from 2025 and so on at 1% will approach 27.62% based on the 2019 GDP.  The approach used is to determine the difference between the after 2025 GDP and the 2019 GDP.  This difference (growth in absolute terms) is divided by the 2019 GDP, and then multiplied by 100 to obtain the rate.

c) If the growth rate of 5% is sustained, it will take the GDP 15 years to double:

420,000 = G₀(1 + g)ⁿ

420,000 = 210,000 (1 + 5%)ⁿ

Solving for n with an online calculator,

n = 15 years

Check:

210,000 x 2.079

= 436,590

= 437,000 approx.

As a number of years = 15 years

As a fraction of part a answer = 15/26 = 57.69%

Explanation:

a) 2019 Country Z's GDP = 210,000

2019  - 2022 Growth rate = 5%

Future growth rates:

2022- 2025 = 3%

2025 - so on = 1%

Let Country (Z's) GDP in 2019 = G₀ which is equal to 210,000

n = number of years from 2019 to 2022, 2022 to 2025, and so on.

g = growth rate = 5% for the period 2019 to 2022

Gⁿ = GDP in n years at given rates

Gⁿ = G₀(1 + g)ⁿ

(1 + g)ⁿ = increase in GDP as a result of the growth rate and number of years

b) With GDP growth of 5% from 2019 to 2022, the GDP will be

= 210,000 (1 + 5%)³

= 210,000 x 1.158

= 243,000 approx.

c) From 2022 to 2025 at 3%, the GDP will be

= 243,000 (1 + 3%)³

= 243,000 x 1.093

= 265,600

For GDP to double the 2019 GDP with 3% growth = 420,000 (210,000 x 2) or more

GDP = Gⁿ = G₀(1 + g)ⁿ

420,000 = 243,000 (1 + 3%)ⁿ

solving for n with an online calculator,

n = 20

Check:

= 243,000 (1 + 3%)∧20

= 243,000 x 1.817

= 441,531

= 442,000


Related Questions

Ginger, Inc., has declared a $6.40 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 10 percent. New IRS regulations require that taxes be withheld at the time the dividend is paid. The company's stock sells for $94.50 per share, and the stock is about to go ex dividend. What do you think the ex-dividend price will be?

Answers

Answer:

$88.74

Explanation:

Ginger incorporation has declared a dividend of $6.40 per share

The dividends are taxed at 10%

= 10/100

= 0.1

The company's stock is sold at $94.50 per share

Therefore, the ex-dividend price can be calculated as follows

Ex-dividend price= Current selling price-dividend(1- tax rate)

= $94.50-$6.40(1-0.10)

= $94.50-$6.40(0.9)

= $94.50-$5.76

= $88.74

Hence the ex-dividend price is $88.74

Suppose we are looking at a cash flow statement constructed using the INDIRECT method. We see a NEGATIVE adjustment of $5000 related to Accounts Payable. Which of the following are correct interpretations of this?a. Depreciation provided cash of $1000 b. The firm sold long-term assets for $1000 c. The firm invested $1000 of cash in long-term assets d. Income was lower by $1000 because of Depreciation expense

Answers

Answer:

It implies that the firm paid $5,000 to its supplier this accounting period (e.g. year) out of the amount the firm is owing the supplier.

Note: The correct answer is as stated above it is not included in the option. Kindly confirm the options again from your teacher.

Explanation:

Accounts payable refers to the amount of money a firm is owing its suppliers.

Account payable is one of the component of the current liabilities in the balance sheet, and non-cash current liability item that is adjusted for in the cash flow statement to arrive at net cash from operating activities when an indirect method is being used.

Since accounts payable is the amount of money a firm is owing its suppliers, a negative  a NEGATIVE adjustment to its implies that company has paid its supplier the negative amount in the accounting period.

Therefore, a NEGATIVE adjustment of $5000 related to Accounts Payable implies that the firm paid $5,000 to its supplier this accounting period (e.g. year) out of the amount the firm is owing the supplier.

Alice is single and self-employed in 2019. Her net business profit on her Schedule C for the year is $100,000. What is her self-employment tax liability for 2019?

Answers

Answer:

$15,300

Explanation:

Remember, under the FICA Tax rate for 2019, the charge is 15.3% on first $132,900 of net income plus 2.9% on the net income in excess of $132,900. However, Alice net income is only about $100,000.

So, her Self employment tax liability =100,000 x 15.3% = $15,300 (since her net income doesn't exceed $132,900 we need not apply the 2.9% charge)

Fremont Enterprises has an expected return of 18 % and Laurelhurst News has an expected return of 21 %. If you put 43 % of your portfolio in Laurelhurst and 57 % in​ Fremont, what is the expected return of your​ portfolio? g

Answers

Answer: 19.29%

Explanation:

From the question, Fremont Enterprises has an expected return of 18% and 57% of the portfolio is put in​ Fremont. The portfolio return of Fremont will be the expected return multiplied by the weight. This will be:

= 18% × 57%

= 18 × 0.57

= 10.26%

We are also told that Laurelhurst News has an expected return of 21% and that 43% of the portfolio is put in​ Laurelhurst News. The portfolio return here will be the expected return multiplied by the weight. This will be:

= 21% × 43%

= 21% × 0.43

= 9.03%

The the expected return of the portfolio will now be:

= 10.26% + 9.03%

= 19.29%

Which one of the following is not a factor that influences a business's control environment? Group of answer choices management's philosophy and operating style organizational structure proofs and security measures personnel policies

Answers

Answer:

proofs and security measures

Explanation:

According to the Sarbanes-Oxley, there are three factors that affect the Company's Control Environment which is as follows

1. Personnel Policies      

2. Management's Philosophy and their operating styles    

3. And, the last one is Organizational Structure

Therefore the third option is not a influencing factor for a business control environment

Problem-solving is an interpersonal ability to take corrective action in a problem situation in order to meet desired objectives.
A. True
B. False

Answers

Answer:

True.

Explanation:

Problem-solving is an interpersonal ability to take corrective action in a problem situation in order to meet desired objectives.

The problem-solving skills is an essential and very important attribute that is meant to be possessed by each and every leader. A problem-solving skill is one of the most important part of conceptual skills and it involves the use of an individual's interpersonal or cognitive ability to take corrective action when faced with a problematic situation in order to meet the desired or set objectives in an organization or team. There are basically four (4) essential steps to solving a problem and these are;

1. You should identify the problem.

2. Design an alternative solution to the problem.

3. Evaluate the solutions and choose the best among the solutions.

4. Execute the solution deemed to be best and most effective.

g For this question, ignore inflation. Suppose Jenny earns $60,000 per year working as a tax analyst. After ten years, she quits her job and pursues a PhD in Art History. For the 5 years she is in school, she gets a teaching stipend of $12,000 per year. For the next 35 years, she is an art director and earns $95,000. If she expects to live for 20 years in retirement. If Jenny doesn’t earn any interest on her savings and wants to perfectly smooth consumption across her life, how much will she consume every year? What might prevent her from perfectly smoothing consumption?

Answers

Answer:

If Jenny doesn’t earn any interest on her savings and wants to perfectly smooth consumption across her life, how much will she consume every year?

Jenny's total income during her life = income as tax analyst ($60,000 x 10) + income as PhD student ($12,000 x 5) + income as Art Director (35 x $95,000) = $3,985,000

she generated income during 50 years and expects to live 20 more, so in order to perfectly smooth consumption across her life, she must divide her total life income by 70 years = $3,985,000 / 70 years = $56,928.57 per year

What might prevent her from perfectly smoothing consumption?

First of all, besides inflation, you also earn interest on your savings. That is why 401k and other retirement accounts work so well (the magic of compound interest). Even if inflation and interests didn't exist, you cannot know exactly what you are going to earn in the future and for how many years. In this case, she earned $60,000 for 10 years, but then earned only $12,000 during 5 years. If she really wanted to smooth her consumption, she would have needed to get a loan because her savings during the first 10 years wouldn't be enough.

The beta of an all-equity firm is 1.4. Suppose the firm changes its capital structure to 40 percent debt and 60 percent equity. What is the equity beta of the levered firm

Answers

Answer:

1.59  

Explanation:

The formula required to calculate the equity beta of the levered beta is given below:

Levered Beta=Unlevered Beta*((1+(1-tax rate)*(debt/equity))

unlevered bera=1.4

tax rate (assume it is 30%) is 0.30

debt is 40% or 0.40

equity is 60% or 0.60

Levered Beta=1.4((1+(1-0.30)*(0.40/0.60))

levered Beta=1.4*(1+0.7)*0.666666667

levered beta=1.4*1.133333334

levered beta= 1.59  

You can recompute using the missing actual tax rate

Operating Cash Flow The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of its new proposed service: Projected sales $25 million Operating costs (not including depreciation) $7 million Depreciation $6 million Interest expense $5 million The company faces a 35% tax rate. What is the project's operating cash flow for the first year (t = 1)? Write out your answer completely. For example, 2 million should be entered as 2,000,000.

Answers

Answer: $13,800,000

Explanation:

Operating Cashflow for the year = EBIT * (1 - tax rate) + Depreciation.

Earnings before Interest and Tax (EBIT) = Revenue - Operating Costs - Depreciation

= 25 - 7 - 6

= $12 million

Operating Cashflow = 12 * ( 1 - 35%) + 6

= 12 * 65% + 6

= $13.8 million

= $13,800,000

New lithographic equipment, acquired at a cost of $800,000 on March 1 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $90,000. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. In the first week of the fifth year, on March 4, the equipment was sold for $135,000.

Required:
a. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by (a) the straight-line method and (b) the double-declining-balance method.
b. Journalize the entry to record the sale assuming the manager chose the double-declining-balance method.
c. On January 1, journalize the entry to record the sale in (b), assuming that the equipment was sold for $88,750 instead of $135,000.

Answers

Answer:

a. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by:

(a) the straight-line method

depreciation expense per year = ($800,000 - $90,000) / 5 years = $142,000

End of year            depreciation expense          book value

1                                  $142,000                           $658,000

2                                 $142,000                           $516,000

3                                 $142,000                           $374,000

4                                 $142,000                           $232,000

and (b) the double-declining-balance method.

depreciation expense year 1 = 2 x 1/5 x $800,000 = $320,000

depreciation expense year 1 = 2 x 1/5 x $480,000 = $192,000

depreciation expense year 1 = 2 x 1/5 x $288,000 = $115,200

depreciation expense year 1 = 2 x 1/5 x $172,800 = $69,120

End of year            depreciation expense          book value

1                                  $320,000                           $480,000

2                                 $192,000                            $288,000

3                                 $115,200                              $172,800

4                                 $69,120                               $103,680

b. Journalize the entry to record the sale assuming the manager chose the double-declining-balance method.

Dr Cash 135,000

Dr Accumulated depreciation - lithographic equipment 696,320

    Cr Lithographic equipment 800,000

    Cr Gain on sale 31,320

c. Journalize the entry to record the sale in (b), assuming that the equipment was sold for $88,750 instead of $135,000.

Dr Cash 88,750

Dr Accumulated depreciation - lithographic equipment 696,320

Dr Loss on sale 14,930

    Cr Lithographic equipment 800,000

 

New Orleans Shipping. If the share price of Emaline, a New Orleans-based shipping firm, rises from $12 to $15 over a one-year period, what is the rate of return to the shareholder given each of the following: a. The company paid no dividends. b. The company paid a dividend of $1 per share. c. The company paid the dividend, and the total return to the shareholder is separated into the dividend yield and the capital gain.

Answers

Answer:

a. The company paid no dividends.

= ($15 / $12) - 1 = 0.25 = 25%

b. The company paid a dividend of $1 per share.

= ($16 / $12) - 1 = 0.333 = 33.3%

c. The company paid the dividend, and the total return to the shareholder is separated into the dividend yield and the capital gain.

dividend yield = $1 / $12 = 0.083 = 8.3%capital gain = $3 / $12 = 0.25 = 25%

Explanation:

initial investment = $12

current market price = $15

gain = $3 if no dividend paid, and $4 if dividend paid

If returns of​ S&P 500 stocks are normally​ distributed, what range of returns would you expect to see​ 95% of the​ time? Base your answer on the information below. 19.72%

Answers

Answer: -29.75% to 52.33%

Explanation:

Given the Average return and the standard deviation, the range that is to be expected 95% of the time can be calculated by;

Upper bound = Average + (2 * standard deviation)

Lower Bound = Average - (2 * standard deviation)

Upper bound = 11.29% + (2 * 20.52%)

= 11.29% + 41.04%

= 52.33%

Lower bound = 11.29% - (2 * 20.52%)

= 11.29% - 41.04%

= -29.75%

The range is, -29.75% to 52.33%

If the physical count of inventory showed $158,000 of inventory on hand and the inventory records reported $163,000, what would be the necessary adjusting entry to record inventory shrinkage? a. debit cost of Goods Sold, $163,000; credit Inventory, $158,000 b. debit Inventory, $5,000; credit Cost of Goods Sold, $5,000 c. debit cost of Goods Sold, $5,000; credit Inventory, $5,000 d. debit Inventory, $158,000; credit Cost of Goods Sold, $158,000

Answers

Answer:

C. Debit Cost of goods Sold $5,000;

Credit Inventory $5,000

Explanation:

Preparation of the necessary adjusting entry to record inventory shrinkage

Since  we assumed  that the physical count of inventory showed $158,000 of inventory on hand and the inventory records reported $163,000 the first step to do is to find the difference  between the two amount which is ($163,000-$58,000) given us a different of $5,000 which will now be recorded as:

Debit Cost of goods Sold $5,000

(163,000-158,000)

Credit Inventory $5,000

Which of the following is a required financial statement? 1 point Statement of Auditor Independence Statement of Cash Flows Statement of Revenues and Expenditures Statement of Tangible Equity

Answers

Answer:

statement of revenues

Statement of Cash Flows Statement is a required financial statement.

The following information should be considered:

Statement of Cash Flows Statement is the statement of operating, investing, and the financing activities. It deals with cash inflows and cash outflows of the organization, It analyzed the cash position of the company.

Learn more: brainly.com/question/17429689

You expect to receive annual gifts of $1,000 at the end of Years 1 and 2 and $1,500 at the end of Years 3 and 4. Which of these is the correct present value of multiple annuities formula if the rate is 6 percent

Answers

Answer:

Total Present Value = 4280.962

Explanation:

The correct Present Value formulae

PV of annuity formula:

PV = A× 1 -(1+r)^(-n)/r

PV - Present value of annuity'

A- Annual cash flow

r- discount rate  per period

n- number of period

First set of cash inflows  i.e 1,000 for year 1 and 2

1,000 × ( 1- 1.06^(-2) )/0.06

PV =1,833.39

Second set of cash flows i.e year 3 and 4

Year 3 and Year 4

1,500 × (1- 1.06^(-2) )/0.06 ×  1.06^(-2)

= 2,447.569

Total PV = 1,833.39 +  2,447.569 = 4280.962086

Total Present Value = 4280.962

Meryl is an avid doll collector and has been searching for the Beach Doll to complete her 200-piece collection. There were only 5 Beach Dolls created in the world. Meryl is envious of her neighbor Nancy, who has the first Beach Doll ever created. Nancy refuses to sell the doll because she thinks it will be worth a million dollars someday. While Nancy is on vacation, Meryl hires Alex to steal the doll from Nancy's home. Has an agency relationship been formed?

Answers

Answer:

An agency relationship has not been formed

Explanation:

An agency relationship has not been formed because the agreement has an illegal purpose. An agency relationship is a situation where one party calling the principal allows another party called agent to act on his or her behalf.

An agency relationship is only formed if the purpose for it's creation is legal. Meryl hired Alex to steal from Nancy, which is an illegal arrangement. Therefore an agency relationship was not formed.

It's important to note that sometimes private solutions to externalities do not work. For example, this occurs when an excessive amount of time or money must be spent for parties to reach an agreement. This describes the problem of .

Answers

In the case when an excessive amount should be spending so this represents the problem of the Transaction cost.

What does a transaction cost?

Transaction cost is the cost that is typically in money or time format. It is the cost involved in the context of time or money when a decision is made or an agreement has been reached.

So according to the given situation, there is an excessive amount of time or money spent on parties so that it could be reached to an agreement

Therefore it represents the transaction cost.

Learn more about cost here: https://brainly.com/question/24468619

Feldpausch Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 1,398,250 65,800 machine-hours Processing orders $ 69,451 2,520 orders Inspection $ 184,800 2,400 inspection-hours The company makes 920 units of product W26B a year, requiring a total of 1,290 machine-hours, 61 orders, and 40 inspection-hours per year. The product's direct materials cost is $57.55 per unit and its direct labor cost is $13.56 per unit. The product sells for $123.50 per unit. According to the activity-based costing system, the product margin for product W26B is:

Answers

Answer:

$16,125.15

Explanation:

DATA:

Activity Cost Pool       Total Cost           Total Activity

Assembly                   $1,398,250           65,800 machine hours

Processing orders      $ 69,451              2,520 orders

Inspection                   $ 184,800             2,400 inspection-hours

Units produced = 920

Machine hours required = 1290

Processing orders required= 61

Inspection hours required = 40

Direct material cost = 57.55

Direct labor cost = 13.56 per unit

Selling price = 123.50

Solution

Sales Revenue (920 ×$123.5)                                   $113,620

LESS: Costs  

Direct Materials (920 × $57.55)                                $52,946

Direct labor (920 ×$13.56)                                        $12,375.2  

Assembly (1,398,250/65,800) = 21.25 × 1290=       $27412.5  

Processing (69,451/2,520) = 27.55 × 61 =               $1681.15

Inspection (184,800/2,400) = 77 x 40 =                   $3080        

Total Cost                                                               ($97494.65)      

Product margin                                                         $16,125.15

The bid-ask spread exists because of _______________. A. market inefficiencies B. discontinuities in the markets C. the need for dealers to cover expenses and make a profit D. lack of trading in thin markets

Answers

Answer:

C. the need for dealers to cover expenses and make a profit

Explanation:

In the market for securities there are two pricing of securities.

The ask price is the price at which the buyer is willing to purchase a security.

The ask price or the offer price is price at which the seller of a security is willing to sell it. Ask price can be firm or negotiable.

Bid ask spread is the difference between the highest amount a buyer is willing to buy a security and the lowest price at which a seller is willing to sell it.

This spread exists because dealers need to cover expenses and make a profit

A company purchased $2,800 of merchandise on July 5 with terms 3/10, n/30. On July 7, it returned $700 worth of merchandise. On July 12, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on July 12 is:

Answers

Answer and Explanation:

The correct journal entry as on July 12 is shown below

Account payable ($2,800 - $700) $2,100

          To Merchandise inventory $2,037

          To Cash ($2,100 × 3%) $63

(Being the cash paid is recorded)

For recording this we debited the account payable as it decreased the liabilities and credited the merchandise inventory and cash as it also decreased the assets

A portfolio manager generates a 20% rate of return on a "small cap" portfolio, compared to a 15% rate of return on the benchmark portfolio and a 10% rate of return on the Standard and Poor's 500 index over the same period. The passive rate of return on the portfolio is:

Answers

Answer:

15%

Explanation:

A passive portfolio management is an act of running a portfolio to meet the performance  and requirements of a benchmark portfolio.

Given that:

A portfolio manager generates = 20% rate of return

Benchmark portfolio = 15% rate of return

Standard and Poor's 500 index = 10% rate of return.

The passive rate of return  will be 15%. This is because a passive rate of return is attained by putting money into the right index fund, From the information given; the benchmark index has an 15% rate of return. As such,  that is the return any passive investor could attain as a result of putting money in an index fund.

Workers at Majestic Manufacturing have won the right to unionize, but management is unwilling to participate in the collective bargaining process and bargain in "good faith." This is a direct violation of the _______Act.

Answers

Answer: National Labor Relations Act

Explanation:

Passed in 1935, this is a fundamental act in United States Labor law that grants private sector employees the right to join Unions and engage with employers in Collective Bargaining to better their employment conditions. This act even gave the employees the right to strike if their demands are not meant.

Most relevant is that in Section 8 of the Act, it is made clear that when an Employer refuses to engage in Collective Bargaining with the representative of their employees, that this is an unfair labor practice and under the Act, is considered to be illegal.

Fleesum recently began using cross-functional teams. Dee wants to make sure the teams collaborate effectively, but also wants to avoid stifling individual initiative. One method she could use to achieve this goal would be to:

Answers

Answer:

use a skill-based pay plan for the teams.

Explanation:

Based on this scenario it can be said that the best method for Dee to use would be a skill-based pay plan for the teams. A Skill-based pay (SBP) is a unique compensation method that is designed to reward individual employees with additional pay in exchange for formal certification of the employee's mastery of skills, knowledge, and/or competencies. This will promote individual initiative without suppressing a cooperative work environment.

Leonard Technologies invests $62,000 to acquire $62,000 face​ value, 10​%, five - year corporate bonds on December​ 31, 2014. The bonds will mature on December​ 31, 2019. The bonds pay interest semi-annually on December 31 and June 30 every year until maturity. Assume Leonard Technologies uses a calendar year. Based on the information​ provided, which of the following will be included in the journal entry for the transaction on December​ 31, 2018?
a. a debit to Interest Revenue for $5,400.
b. a credit to Interest Revenue for $2,700.
c. a debit to Interest Revenue for $2,700.
d. a credit to Interest Revenue for $5,400.

Answers

Answer:

Credit to Interest Revenue for $3,100

Explanation:

Date      Account Titles and Explanation                   Debit        Credit

Dec 31.     Cash ($62,000 * 10% * 6/12)                       $3,100

                 Interest Revenue                                                           $3,100

     (To record interest revenue for the semi

       annual period ended December 31, 2018)

In _____, organizations receive feedback from the external environment regarding the value of their outputs, the availability of future inputs, and the appropriateness of the transformation process.

Answers

Answer:

This question is incomplete, the options are missing. The options are the following:

a) organizational effectiveness

b) closed systems

c) good fit

d) open systems

e) innovative processes

And the correct answer is the option D: open systems.

Explanation:

To begin with, the concept known as "Open Systems" refers to the type of systems that mainly receive their information from external sources but also from internal sources. So those kind of systems are the ones that encourage all the parts to work as a whole in order to obtain better results and that is why that it is in those sytems where the organizations study the feedback that comes from the environment and uses with the purpose of getting better at their operations.

Hart Enterprises recently paid a dividend of $1.25. It expects to have a dividend growth rate of 15% for 3 years followed by a constant rate of 6% thereafter. The firm’s required return is 10%. What is the firm’s stock value today?

Answers

Answer:

Value of stock =  $41.95

Explanation:

The price of a stock using the dividend valuation model is the present value of the the future dividend expected from the stock discounted at the required rate of return.

Year                                        Present Value

1      1.25× 1.15^1 × 1.1^(1-)    =1.3068

2      1.25× 1.15^2 × 1.1^(-2) = 1.366

3.     1.25× 1.15^3 × 1.1^(-3)= 1.4283

Present value of Dividend in Year 4 and beyond

This will be done in two steps

Step 1

PV in year 3 terms

= Dividend in year 4× (1.06)/(0.1-0.06)

1.25× 1.15^3 × 1.06/(0.1-0.06)=50.37898438

PV in year 0 terms =

PV in year 3 × 1.1^(-3)

=50.3789  × 1.1^(-3)= 37.8504

Value of stock = 1.3068 +  1.366 + 1.4283  = 41.95

Value of stock =  $41.95

If merchandise inventory is being valued at cost and the purchase price is steadily falling, which method of costing will yield the largest net income?

Answers

Answer:

The answer is LIFO

Explanation:

LIFO is Last in First out. It means the Inventory that was purchased last goes out first.

In periods LIFO, cost of sales reflects the cost of goods purchased recently and the ending Inventory reflects the older goods.

In periods of falling prices, the costs of ending inventory are high, cost of sales are low and the gross profit are high.

In the MBTI personality model, Disney "imagineers" are more likely to have high _____ scores, while Disney accountants who determine currency transfer equivalencies are more likely to have high _____ scores.

Answers

Answer:

In the MBTI personality model, Disney "imagineers" are more likely to have high __INTJ___ scores, while Disney accountants who determine currency transfer equivalencies are more likely to have high __ISTJ___ scores.

Explanation:

1. MBTI personality model is the Myers-Briggs Theory.  It was developed by the mother-daughter partnership of Katharine Briggs and Isabel Briggs Myers.  At the heart of Myers Briggs theory are four preferences, depicting personality preferences as follows:

1. People and things (Extraversion or "E"), or ideas and information (Introversion or "I").

2. Facts and reality (Sensing or "S"), or possibilities and potential (Intuition or "N").

3. Logic and truth (Thinking or "T"), or values and relationships (Feeling or "F").

4. A lifestyle that is well-structured (Judgment or "J"), or one that goes with the flow (Perception or "P").

These four major classifications mean that one tends to have more of each than the other.  This means that there are 16 traits or combinations of traits for a given personality.

2. INTJ personality type: Disney "imagineers" are likely to direct their energies to deal with (Introversion) ideas, information, explanations, and beliefs, as people in research and development at Disney.  The information they deal with will be based on ideas, new possibilities, and not obvious things (Intuition) instead of facts and what they know and see.  Their decision making will be based on objective logic, using analytic and detailed approaches.  Their work will be planned and well-structured to reflect their lifestyle as opposed to flowing with the trend and maintaining flexibility.

3. ISTJ personality class: Disney accountants will bear similar traits like the "imagineers" except that instead of dealing with unknown and not obvious ideas and possibilities like the imagineers, they would prefer their information for processing to be based on clear facts and what they see and know.

Answer:

In the MBTI personality model, Disney "imagineers" are more likely to have high __INTJ___ scores, while Disney accountants who determine currency transfer equivalencies are more likely to have high __ISTJ___ scores.

Explanation:

Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 20,000 shares authorized, 9,000 shares issued, and 8,000 shares of common stock outstanding. The journal entry to record the dividend payment is:

Answers

Answer and Explanation:

The journal entry to record the dividend payment is shown below:

Common Dividends payable  $4,000 (8,000 shares outstanding × $ 0.50 cash dividend)

     To Cash for $4,000

(being the dividend payment is recordeD)

For recording this we debited the common dividend payable as it decreased the liabilities and credited the cash as it also decreased the assets

Yehti Manufacturing (A). Dual classes of common stock are common in a number of countries. Assume that Yehti Manufacturing has the following capital structure at book value. The A-shares have ten votes per share and the B-shares have one vote per share.
Local Currency (millions) Yehti Manufacturing 196 304 170 430 1,100 Long-term debt Retained earnings Paid-in common stock: 1.7 million A-shares Paid-i n common stock: 4.3 million B-shares Total long-term capital a. What proportion of the total long-term capital has been raised by A-shares?
a. What proportion of the total long-term capital has been raised by A-shares? The proportion of the total long-term capital that has been raised by A-shares is %. (Round to two decimal places.)
b. What proportion of voting rights is represented by A-shares? The proportion of voting rights represented by A-shares is | %. (Round to two decimal places.)
c. What proportion of the dividends should the A-shares receive? The proportion of the dividends that A-shares should receive is | %. (Round to two decimal places.)

Answers

Answer:

yes

Explanation:

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