Which statements is FALSE about IFRS 16 which deal with lease
Select one:
a. A right of use of an asset representing a lessee, right to use an undying asset for the lease term
b. The standard identifies the type of lease as either finance or operating lease.
c. A contract is, or contain a lease if the contract conveys the right to control the use of un identified assets for a period of time in exchange for a consideration
d. At the inception of a contract, an entity shall assess whether the contract is or contains a lease

Answers

Answer 1

The standard identifies the type of lease as either a finance or operating lease is a False statement. Thus, option B is correct.

The classification of finance or any operating leases is not based on predetermined criteria because it comes under the previous standard. Then a new law IFRS 16 is introduced that uses a single lease accounting model only except for certain exceptions.

This IFRS 16 teats all leases are equal for finance leases. It uses the very less right-of-use asset and also small exemption factors like leases of low-value assets and short-term leases. It is no longer used under IFRS 16.

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Related Questions

A confirmation procedure scheduled on the year-end date with a large sample of customer account balances is necessary if tests of controls reveal control weaknesses. T/F

Answers

True. When tests of controls reveal weaknesses, it means that the internal control system in place is not strong enough to prevent or detect errors or fraud. In such situations, auditors need to gather more evidence to ensure the accuracy and completeness of financial statements.

A confirmation procedure involves sending letters to customers asking them to confirm the balance of their accounts as of a specific date. This helps auditors to verify the existence and accuracy of the balances recorded in the company's books. By doing so, they can identify any discrepancies or irregularities and take appropriate actions to rectify them. The year-end date is a crucial time for companies, as it marks the end of the financial year. It is a time when financial statements are prepared, and the results are reported to stakeholders. Thus, it is essential to have a confirmation procedure scheduled during this time to ensure that the financial statements are accurate and reliable.
Using a large sample of customer account balances provides a higher degree of confidence in the accuracy of the financial statements. Auditors can select a sample of accounts that represents a significant portion of the total accounts receivable balance and confirm the balances with those customers.
In conclusion, when tests of controls reveal weaknesses, auditors need to perform a confirmation procedure on the year-end date with a large sample of customer account balances to gather more evidence and ensure the accuracy and completeness of financial statements.

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the promark company manufactures a pencil that is about five inches long and has no eraser. it sells the product primarily to golf courses and universities. what type of targeting strategy is the promark company using?

Answers

The Premark company is using a niche targeting strategy. A niche targeting strategy focuses on serving a specific and well-defined segment of the market, in this case, golf courses and universities.

The fact that the pencil is small and has no eraser also suggests that it is designed for a specific purpose or use, further emphasizing the niche strategy. This approach allows the company to tailor their marketing and product development efforts to meet the unique needs of this particular segment, which can lead to greater customer loyalty and profitability.


A concentrated targeting strategy is when a company focuses its marketing efforts on a specific and well-defined segment of the population. In this case, Prom ark is targeting golf courses and universities as the primary consumers of their five-inch-long pencil without an eraser.

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View Policies Current Attempt in Progress Nash's Trading Post, LLC gathered the following reconciling information in preparing its April bank reconciliation: Cash balance per books, 4/30 $13000 Deposits in transit 1800 Notes receivable and interest collected by bank Bank charge for check printing 150 Outstanding checks 8900 NSF check 830 4380 The adjusted cash balance per books on April 30 is $16400 $18060. $17380 $18200. to search o BI .

Answers

Based on the reconciling information provided, the adjusted cash balance per book on April 30 for Nash's Trading Post, LLC is $16400. To view the policies related to this reconciliation attempt, you may need to refer to the company's internal policies or accounting procedures.

The April bank reconciliation for Nash's Trading Post, LLC includes the following information: 1. Cash balance per books, 4/30: $13,000 2. Deposits in transit: $1,800 3. Notes receivable and interest collected by the bank: $4,380 4. Bank charge for check printing: $150 5. Outstanding checks: $8,900 6. NSF check $830 To calculate the adjusted cash balance per book on April 30, follow these steps: 1. Add deposits in transit and notes receivable collected by the bank to the cash balance per book: $13,000 + $4,380 = $17,380. 2. Subtract bank charges, outstanding checks, and NSF checks: $17,380 - $150 -  $830 = $16,400. The adjusted cash balance per book on April 30 is  $16,400.

It is also important to note that this information should be entered into any relevant accounting software or tools, such as BI, to ensure accurate tracking and reporting of financial data.

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A monopolist _____ than a perfectly competitive industry.
A. charges a higher price
B. earns less profit in the long run
C. charges a lower price
D. produces a larger quantity

Answers

A monopolist charges a( A) higher price than a perfectly competitive industry in the long run.

This is because a monopolist has the power to control the market and can set prices at a level where they can earn maximum profit.

In contrast, in a perfectly competitive industry, there are many small firms that compete with each other, resulting in lower prices and lower profits.

However, the higher price charged by a monopolist may also result in a lower quantity produced, as consumers may be deterred by the high price.

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Suppose the company decides to make the component in house. In which of the following scenarios will EPQ decrease? a. The fixed cost increases from $72 to $80 b. The annual demand increases from 30,000 units to 60,000 units c. The cost per unit decreases from $10 to $9 d. The weekly production rate increases from 800 to 1000 If the company decides to make the component in house, which of the following is not true? a. If both the weekly demand rate and the weekly production rate increase by a factor of 4, EPQ will increase by a factor of 2 b. If the fixed cost increases by a factor of 4, EPQ will increase by a factor of 2 c. If the fixed cost increases by a factor of 4, the total annual cost will increase by a factor of 2 d. If the annual demand increases by a factor of 4, the average inventory will increase by a factor of 2

Answers

Scenario a: The fixed cost increases from $72 to $80 In this scenario, EPQ will not decrease. The fixed cost is unrelated to the Economic Production Quantity (EPQ), which is a measure used in inventory management to determine the optimal order quantity.

Scenario b: The annual demand increases from 30,000 units to 60,000 unitsEPQ will not decrease in this scenario. EPQ is typically positively correlated with demand, meaning that as demand increases, the optimal order quantity also tends to increase. Scenario c: The cost per unit decreases from $10 to $9 EPQ will not decrease in this scenario. The cost per unit is not directly related to the EPQ calculation, which primarily considers setup costs, holding costs, and demand variables. Scenario d: The weekly production rate increases from 800 to 1000 EPQ will decrease in this scenario. The EPQ calculation takes into account the production rate, and as the production rate increases, the optimal order quantity tends to decrease.

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a new corporation forms every time there is a change in ownership in the shares of common stock
T/F

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The given statement "a new corporation forms every time there is a change in ownership in the shares of common stock" is False. A new corporation is not formed every time there is a change in ownership of shares of common stock.

A corporation is a legal entity that is created by filing articles of incorporation with the state. Once the corporation is formed, it exists independently of its owners, and its ownership can be transferred by buying and selling shares of stock in the corporation.

When shares of common stock are sold, the ownership of the corporation does not change. Instead, the ownership of the shares changes hands, and the new owners become entitled to a portion of the corporation's profits and assets. The corporation itself remains the same legal entity, with the same name, tax identification number, and legal obligations.

In summary, the formation of a corporation is a one-time event that occurs when the corporation is created by filing articles of incorporation with the state. Changes in ownership of shares of common stock do not result in the creation of new corporations.

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healy and palepu found that the stock price of firms that stopped paying a dividend declined by 9.5% on average upon announcement. true/false

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The statement "Healy and Palepu found that the stock price of firms that stopped paying a dividend declined by 9.5% on average upon announcement" is true.

A dividend is a profit paid to a company's shareholders out of the company's retained profits. A dividend is generally paid to shareholders as cash, although it can also be paid as additional shares of stock. The decision to pay a dividend rests solely with the company's board of directors and is usually determined by the company's financial results, growth, and future plans. Dividends are typically paid on a regular basis, such as quarterly or annually.Healy and Palepu found that the stock price of firms that stopped paying a dividend declined by 9.5% on average upon announcement. It means that the statement is true. The stock prices of companies that do not pay dividends or stop paying dividends decline significantly upon the announcement.

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macrs depreciation rates extend one year beyond the recovery period because of the required ___

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The MACRS- Modified Accelerated Cost Recovery System depreciation rates extend one year beyond the recovery period because of the required half-year convention. The half-year convention assumes that property is placed in service halfway through the year in which it is acquired.

Therefore, regardless of when during the year the property is acquired, it is assumed to have been placed in service on July 1st and is depreciated for half a year in the year of acquisition.  The half-year convention allows the IRS to simplify the depreciation calculation and ensures that taxpayers are not claiming too much depreciation in the year of acquisition. If the full-year convention were used instead, the taxpayer would be able to claim a full year's worth of depreciation in the year of acquisition, even if the property was placed in service much later in the year.

By using the half-year convention, the MACRS depreciation rates extend one year beyond the recovery period to ensure that the taxpayer is able to claim the full amount of depreciation over the recovery period. This means that if the property has a five-year recovery period, it will be depreciated over six years under MACRS, with the final year's depreciation being a half-year's worth. Overall, the half-year convention and MACRS depreciation rates allow for a simplified and fair method of calculating depreciation for tax purposes.

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All of the following are reasons to monitor your investment portfolio except to a. Ensure the goals are being met b. Take advantage of changes in economic ...

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Monitoring your investment portfolio is an essential part of investing. It helps you keep track of how your investments are performing and ensures that- a.  your goals are being met.

What is the reason?

However, there are reasons why you may not need to monitor your portfolio. For example, you may have a long-term investment strategy that doesn't require constant monitoring, or you may have a portfolio that is diversified enough to weather market fluctuations.

Additionally, taking advantage of changes in economic conditions is a proactive approach to investing that may require more frequent monitoring.

Overall, while there are valid reasons to monitor your investment portfolio, it's important to determine what level of monitoring is necessary for your specific investment strategy.

Hence, option a. is  correct.

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a new method of farming is developed that increases output by one-third. in the short run, this will ________ output and ________ employment.

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In the short run, the new method of farming that increases output by one-third will increase output and potentially reduce employment.

The increase in output means that more crops can be produced with the same amount of resources (land, labor, capital) as before, leading to an increase in overall production. However, since the new method of farming is more efficient, it may require less labor to produce the same amount of crops. As a result, employment in the farming sector may decrease in the short run as the new method is adopted.

It's important to note that the long-term effects of the new method of farming on employment may differ as the sector adjusts to the new technology and potentially expands as a result of increased production.

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A new method of farming is developed that increases output by one-third. in the short run, this will increase output and increase employment.

This is because the new method of farming will allow farmers to produce more crops with the same amount of resources, such as land, labor, and capital.

As a result, farmers will be able to supply more goods to the market, which will increase output. Additionally, the new method of farming may lead to an increase in employment in the short run. This is because farmers may need additional workers to operate new machinery or perform new tasks associated with the new farming method.

However, the long-term effects of the new method of farming on employment will depend on the labor-saving or labor-intensive nature of the technology.

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the balance in retained earnings equals all net income, less all dividends, since the company began operations. group startstrue or falsetrue, unselectedfalse, unselected

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The statement that "the balance in retained earnings equals all net income, less all dividends since the company began operations" is true.

Retained earnings represent the cumulative net income of a company since its inception, minus the total dividends paid to shareholders.

1. A company generates net income through its operations.
2. The net income can either be distributed to shareholders as dividends or retained within the company for future investments or to cover expenses.
3. The balance in retained earnings is the accumulated amount of net income that has been kept within the company rather than distributed as dividends.
4. Therefore, the balance in retained earnings equals the total net income minus the total dividends since the company began operations.

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describe a time when you gave excellent customer service.

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One example of excellent customer service is when a customer had an issue with a product they purchased and reached out to the company's customer service hotline. The representative on the phone listened attentively to the customer's concerns, empathized with their frustration, and assured them that they would do everything possible to resolve the issue.

The representative took ownership of the problem and asked probing questions to fully understand the situation. They patiently explained the available solutions and provided clear instructions on how to proceed. They also offered additional assistance if needed, such as providing a replacement product or offering a refund.

Throughout the interaction, the representative remained friendly, professional, and courteous, creating a positive and reassuring atmosphere for the customer. They followed up promptly on any promises made during the conversation and ensured that the customer was fully satisfied with the resolution.

This example illustrates the key elements of excellent customer service: active listening, empathy, promptness, clear communication, problem-solving, and going above and beyond to meet the customer's needs and expectations.

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A dynamic pricing policy allows marketers to respond to
a.
requests for allowances.
b.
threats of discrimination.
c.
changes in demand, cost, and competitive factors.
d.
success measures for the firm's previous promotions.
e.
inquiries by government agencies

Answers

A dynamic pricing policy allows marketers to respond to changes in demand, cost, and competitive factors, option d.

Dynamic pricing is a strategy where prices for products or services are adjusted in real-time based on various factors such as demand, cost, and competition. By implementing a dynamic pricing policy, marketers can adapt their pricing strategies to reflect changes in market conditions and optimize revenue and profitability.

When demand for a product or service increases, dynamic pricing allows marketers to raise prices to capture the willingness of customers to pay more. Conversely, when demand decreases or there is excess inventory, prices can be lowered to stimulate sales and prevent waste.

Therefore, the correct option is d. changes in demand, cost, and competitive factors.

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rousseau's social contract was based on what two fundamental concepts?

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Rousseau's Social Contract is based on two fundamental concepts: the idea of the general will and the concept of the social contract itself.

According to Rousseau, the general will represent the common good of society, which is different from the will of any individual or group of individuals. In other words, the general will represent what is best for everyone, rather than what is best for some at the expense of others.

The concept of the social contract, on the other hand, refers to the idea that individuals give up some of their individual freedoms in order to create a society that can function effectively. In this way, the social contract serves as a kind of agreement between the individual and society, in which individuals agree to be governed by laws and institutions in exchange for protection and security. Ultimately, Rousseau's Social Contract is an attempt to reconcile the tension between individual freedom and the needs of society, by establishing a system that promotes the general will and the common good.

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a wholesale retailer like costco can in recent times be said to have adopted a: group of answer choices broad differentiation strategy broad low-cost strategy focused differentiation strategy broad cost-leadership strategy

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Costco's adoption of a broad cost-leadership strategy has allowed it to establish itself as a dominant player in the wholesale retail market.

A wholesale retailer like Costco can be said to have adopted a broad cost-leadership strategy in recent times. This strategy involves offering products and services at a low cost compared to other retailers in the market. The company achieves this by operating on a large scale, negotiating with suppliers to get better deals on products, and keeping their overhead costs low. Costco has been able to establish itself as a cost leader by offering bulk items and lower prices to its customers, which has resulted in a loyal customer base. However, it is important to note that while cost-leadership is a successful strategy, it can also be challenging to maintain as other retailers may try to undercut prices and gain market share.

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according to the capital asset pricing model (capm), underpriced securities have group of answer choices positive betas positive alphas negative betas negative alphas

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According to the Capital Asset Pricing Model (CAPM), underpriced securities have positive alphas.

Here's a step-by-step explanation:
1. CAPM is a financial model that helps investors assess the relationship between the expected return of an asset and its risk, which is represented by its beta.
2. The formula for CAPM is: Expected Return = Risk-Free Rate + Beta * (Market Return - Risk-Free Rate).
3. Alpha is the measure of the difference between an investment's actual return and its expected return, based on its beta and the market's performance.
4. If a security has a positive alpha, it means that the security is generating higher returns than what is predicted by CAPM, which implies that it is underpriced.
5. On the other hand, a negative alpha indicates that the security is generating lower returns than predicted by CAPM, suggesting that it is overpriced.

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the price of a soda decreases from $2 to $1. what happens to marginal utility per dollar spent on the soda?

Answers

When the price of a soda decreases from $2 to $1, the marginal utility per dollar spent on the soda increases. This means that for every dollar spent on the soda, the consumer is now able to receive a greater amount of satisfaction or utility.

This is because the decrease in price results in an increase in the purchasing power of the consumer's dollar, allowing them to buy more soda with the same amount of money.
Additionally, the decrease in price may also result in an increase in the quantity demanded of soda, as consumers are now able to afford more of it. As the consumer buys more soda, the marginal utility per dollar spent may decrease slightly, but overall, the decrease in price will result in a higher overall marginal utility for the consumer.
In conclusion, when the price of a soda decreases, the marginal utility per dollar spent on the soda increases, leading to greater overall satisfaction for the consumer.

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According to the Resource Based View (RBV) of the firm, which of the following is NOT a source of inimitability?
A. Path dependency.
B. Causal ambiguity.
C. Social complexity.
D. Explicit knowledge.

Answers

According to the Resource-Based View (RBV) of the firm, the source of inimitability is related to the firm's resources and capabilities that are difficult for competitors to replicate or imitate are Explicit knowledge.

Explicit knowledge refers to knowledge that can be easily codified, documented, and transferred. It can be relatively easy for other firms to acquire or replicate explicit knowledge through methods such as training programs, hiring experts, or purchasing technology. In contrast, the other options (A, B, and C) - path dependency, causal ambiguity, and social complexity - are factors that can contribute to the inimitability of resources and capabilities. These factors make it difficult for competitors to understand, replicate, or substitute the unique advantages and capabilities of a firm.

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your client is currently 22 years old. the interest rate on the funds your client has available is 4.60%. your client wishes to retire at the age of 70 and has an expected lifetime of 90. your client needs $100,000 per year in retirement. calculate the annual payment your client needs to make each year in order to reach this goal.

Answers

Your client needs to make an annual payment of approximately $35,195,652.17 each year in order to reach the retirement goal of $100,000 per year.

To calculate the annual payment your client needs to make each year in order to reach the retirement goal of $100,000 per year, we can use the formula for the present value of an ordinary annuity

P =PMT × [[tex](1-(1+r)^{(n)}[/tex]) / r]

Where; P = Present value or amount needed to reach the retirement goal

PMT = Annual payment needed

r = Interest rate per period

n = Total number of periods

In this case, your client is currently 22 years old and wishes to retire at the age of 70, which means there are 70 - 22 = 48 years until retirement. Additionally, we need to consider the expected lifetime of 90, so there will be 90 - 70 = 20 years of retirement to plan for.

Let's calculate the annual payment needed;

P = $100,000 × [(1 - (1 + 0.046)^(-20)) / 0.046]

P ≈ $100,000 × (1 - 0.2381) / 0.046

P ≈ $100,000 × 0.7619 / 0.046

P ≈ $1,619,000 / 0.046

P ≈ $35,195,652.17

Therefore, your client needs to make an annual payment will be $35,195,652.17.

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(table) based on the table, what is total revenue for john's tricycle company if it produces at its profit-maximizing output?

Answers

Based on the table provided, the profit-maximizing output for John's Tricycle Company is 4 units, which corresponds to a total revenue of $160 (4 units x $40/unit).
Hence, based on the table, the total revenue for John's Tricycle Company at its profit-maximizing output would be calculated by multiplying the number of tricycles produced at that output level by the price per tricycle. Without specific information from the table, I cannot provide an exact numerical answer. Please provide the relevant data from the table for a more accurate response.

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which of the following is the primary reason investors become interested in various types of collectibles? diversification. consumption preferences. low volatility. availability of reliable benchmarks.

Answers

Investors become interested in various types of collectibles for several reasons, but the primary reason is diversification. Collectibles such as art, coins, stamps, and wine offer a unique opportunity to diversify an investment portfolio beyond traditional assets such as stocks, bonds, and real estate.

This is because collectibles have a low correlation with these traditional assets and can provide an added layer of protection against market volatility.
Consumption preferences and the availability of reliable benchmarks can also be factors in an investor's decision to invest in collectibles, but they are not the primary reasons.

Consumption preferences may play a role in an investor's decision to collect certain types of items, such as vintage cars or rare books, but this is not the same as investing in them for financial gain.

Additionally, while there are some benchmarks available for certain collectibles, such as art indices, these are not as widely used or reliable as those for traditional assets.

Low volatility is another potential benefit of investing in collectibles, but this is not a universal characteristic of all collectibles.

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Match the BCG name to the correct characteristics.
1.Dogs: May generate enough cash to sustain themselves but are not considered current or future winners.
2. Cash cows: Generate large amount of cash which can be invested in other SBUs.
3. Question marks: Require cash to maintain market share, even though that share is small.
4. Stars: Requires cash to sustain rapid growth but will likely generate cash when growth slows.

Answers

The BCG Matrix helps categorize businesses or products into four groups based on market growth and market share. 1. Dogs: These refer to businesses or products that have low market share in a slow-growing 2. Cash Cows: These are businesses or products that have a high market share in a slow-growing market. 3. Question Marks: These are businesses or products that have a low market share in a fast-growing market. 4. Stars: These are businesses or products that have a high market share in a fast-growing market.

Dogs may generate enough cash to sustain themselves but are not considered current or future winners, as they have limited potential for growth or increased profits.Cash cows generate a large amount of cash, which can be invested in other strategic business units (SBUs) to promote growth and expansion.


Question marks require cash to maintain market share, even though that share is small. They have the potential to become stars or cash cows, but also carry the risk of becoming dogs if not managed effectively.Stars require cash to sustain rapid growth but will likely generate cash when growth slows. These SBUs have the potential to become cash cows in the future as the market matures and growth slows down.

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conditions that could negatively affect a company's competitive capability are called

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Conditions that could negatively affect a company's competitive capability are called competitive disabilities.

These can include factors such as a lack of resources or technology, poor marketing strategies, ineffective leadership, high costs of production, and strong competition from other companies. It is important for businesses to identify their competitive disadvantages and work to overcome them in order to stay competitive in their industry.
These conditions are called "external threats."

External threats can arise from various factors, such as economic downturns, changes in customer preferences, new competitors entering the market, and unfavorable government regulations. By identifying and addressing these external threats, companies can better maintain and improve their competitive capability in the market.

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according to finance professionals, which one of these factors has the biggest impact on a firm's pe ratio?

Answers

Among the given factors, the earnings growth rate is considered to have the biggest impact on a firm's price-to-earnings (P/E) ratio.

The price-to-earnings (P/E) ratio is a valuation metric used to assess the relative value of a company's stock. It is calculated by dividing the market price per share by the earnings per share (EPS). The P/E ratio indicates the market's expectation of a company's future earnings potential.

The earnings growth rate is a crucial factor in determining a firm's P/E ratio. A higher earnings growth rate implies that the company is expected to generate increasing profits in the future. Investors typically assign a higher P/E ratio to companies with strong earnings growth prospects, as they anticipate higher returns on their investment.

Other factors, such as market conditions, industry trends, and company-specific factors, can also influence the P/E ratio. However, among the options provided, the earnings growth rate is generally considered to have the most significant impact on a firm's P/E ratio. Investors closely analyze a company's earnings growth potential to make informed decisions regarding the stock's valuation.

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Building a positive and ethical reputation requires a firm to:
a. Offer products that are somewhat better than their competitors.
b. Convey a compelling story about the firm and what it stands for.
c. Avoid attention from the news media.
d. Pay opinion leaders to write positive reviews.

Answers

Building a positive and ethical reputation requires a firm to convey a compelling story about the firm and what it stands for. This approach involves communicating the company's values, mission, and purpose effectively to its target audience, which helps establish a strong and positive reputation based on ethical practices and transparency. The correct option is b.

This means that the firm must clearly communicate its values, mission, and goals to its stakeholders, including customers, employees, investors, and the general public. By doing so, the firm can build trust, loyalty, and support among its stakeholders, which can help to enhance its reputation and competitive advantage.

Offering products that are somewhat better than their competitors may be important for gaining a competitive advantage, but it is not enough to build a positive and ethical reputation. Building a reputation requires a long-term commitment to ethical behavior and social responsibility, which involves more than just offering high-quality products or services.

The correct option is b.

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at a product price of $33.00 (i) will this firm produce in the short run? no correct (ii) if it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? not applicable correctoutput

Answers

Based on the given information, we can determine that the firm will not produce in the short run at a product price of $33.00. This is because the price is not enough to cover the variable costs associated with production, such as labor and materials. In the short run, firms will only produce if the price is high enough to cover these variable costs.


However, if the firm decides to produce despite the low price, the profit-maximizing or loss-minimizing output will depend on the firm's cost structure. To determine this output level, the firm needs to compare its marginal cost (MC) with the price. If MC is less than the price, the firm should produce more to increase profits. If MC is greater than the price, the firm should produce less to minimize losses.
In summary, the firm will not produce in the short run at a product price of $33.00, but if it decides to do so, it should produce the output level where MC equals the price to maximize profits or minimize losses.

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Quinoa farms just paid a dividend of $3. 50 on its stock. The growth rate in dividends is expected to be a constant 5 percent per year, indefinitely. Investors require a return of 13 percent on the stock for the first three years and a return of 11 percent for the next three years, and then a return of 9 percent thereafter. What is the current share price for the stock? (do not round intermediate calculations and round your answer to 2 decimal places, e. G. , 32. 16. )

Answers

The present value of all future dividends after year six, which will grow at a rate of 5% and use a required rate of return

We can use the dividend discount model to calculate the current share price of the stock.

The formula for the present value of a stock with constant growth dividends is given by:

`P = D / (r - g)`

In this case, we need to calculate the current share price after six years, when the required rate of return drops to 9%.

First, we need to calculate the dividends for the first six years, considering a growth rate of 5% and the dividends of $3.50 per share:

Dividends for year 1: $3.50 * (1 + 5%) = $3.675

Dividends for year 2: $3.675 * (1 + 5%) = $3.859

Dividends for year 3: $3.859 * (1 + 5%) = $4.052

Dividends for year 4: $4.052 * (1 + 5%) = $4.255

Dividends for year 5: $4.255 * (1 + 5%) = $4.468

Dividends for year 6: $4.468 * (1 + 5%) = $4.691

Next, we can calculate the present value of these dividends at the varying required rates of return for each period:

PV of dividends for year 1: $3.675 / (1 + 13%) = $3.25

PV of dividends for year 2: $3.859 / (1 + 13%)^2 = $2.85

PV of dividends for year 3: $4.052 / (1 + 13%)^3 = $2.52

PV of dividends for year 4: $4.255 / (1 + 11%)^4 = $2.50

PV of dividends for year 5: $4.468 / (1 + 11%)^5 = $2.35

PV of dividends for year 6: $4.691 / (1 + 11%)^6 = $2.22

Finally, we can calculate the present value of all future dividends after year six, which will grow at a rate of 5% and use a required rate of return

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An increase in the average level of physical and/or human capital per person is also called Select the correct answer below: innovation and invention technology improvement capital deepening capital and labor productivity

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An increase in the average level of physical and/or human capital per person is referred to as capital deepening.

Capital deepening refers to the process of increasing the amount of capital per worker, which can result in increased productivity and economic growth. This can be achieved through investments in physical capital, such as machinery, equipment, and infrastructure, or through investments in human capital, such as education and training programs.
Innovation and invention refer to the creation and development of new ideas, products, or processes that can lead to economic growth and productivity improvements. Technology improvement, on the other hand, refers to the advancement and adoption of new technologies that can lead to efficiency gains and increased productivity.Capital and labor productivity are measures of the efficiency of production processes. Capital productivity measures the amount of output that is produced per unit of capital input, while labor productivity measures the amount of output that is produced per unit of labor input. Both measures are important indicators of economic growth and can be improved through capital deepening, innovation, and technology improvement, while innovation, invention, technology improvement, and capital and labor productivity are all important factors in economic growth and productivity improvements, an increase in the average level of physical and/or human capital per person is specifically referred to as capital deepening.

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when the price of a good goes up 1 nd demand decreases by the same amount, a good is said to be which of the following?

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When the price of a good goes up and demand decreases by the same amount, the good is said to have unitary price elasticity of demand.

When the price of a good goes up and the quantity demanded decreases by the same proportionate amount, it indicates that the good has unitary price elasticity of demand. In other words, the percentage change in quantity demanded is equal to the percentage change in price. This is often represented as an elasticity coefficient of -1.

Unitary price elasticity of demand occurs when the demand for a good is perfectly responsive to changes in price. A small increase in price leads to an exactly proportional decrease in quantity demanded, resulting in constant total revenue for the seller. This means that the increase in revenue from the higher price is offset by the decrease in revenue due to the decrease in quantity sold.

This type of elasticity reflects a balanced relationship between price and demand. When a good has unitary price elasticity of demand, it is considered to have a "normal" demand curve. The responsiveness of consumers to price changes is neither extremely elastic (highly responsive) nor inelastic (less responsive).

Unitary price elasticity is important for businesses and policymakers to understand as it helps in making pricing decisions and predicting changes in revenue. For example, if a business wants to increase its revenue, it can adjust the price in such a way that the increase in price is offset by the decrease in quantity demanded, resulting in constant revenue. On the other hand, if a business wants to increase its market share, it may consider lowering the price to encourage greater demand.

In conclusion, a good is said to have unitary price elasticity of demand when the price increases by a certain percentage and the demand decreases by the same percentage. This indicates a balanced and proportionate response of consumers to changes in price, resulting in constant total revenue for the seller.

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If you invest $5,000 today, how many years will it take for your investment to grow to $9,140.20? a. 5.14 b. 5.71 c. 6.35 d. 7.05 e. 7.84

Answers

To determine the number of years it will take for an investment of $5,000 to grow to $9,140.20, we need to use the formula for compound interest: FV = PV x (1 + r/n)^(n*t).The answer is (b) 5.71.

In this case, we know that PV = $5,000 and FV = $9,140.20. We don't know the interest rate or the number of times interest is compounded, but we can assume that interest is compounded annually.So the formula becomes:$9,140.20 = $5,000 x (1 + r/1)^(1*t).Simplifying, we get 1.82804 = (1 + r)^t


Taking the natural log of both sides, we get:ln(1.82804) = t x ln(1 + r) Solving for t, we get:t = ln(1.82804) / ln(1 + r).Now we need to find the interest rate that will make this equation true. We can use trial and error, or we can use the RATE function in Excel.


Therefore, the answer is (b) 5.71.

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