When estimating the cost of equity by use of the dividend growth method, the single biggest potential problem is to determine the growth rate that investors use when they estimate a stock's expected future rate of return. This problem leaves us unsure of the true value of rs.
Answer the following statement true (T) or false (F)
True
Rationale: Unfortunately, this is true.
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At the end of 2013, Clock Products, Inc determined that one of its patents was worthless. The patent had a cost of $300,000 . The patent had been amortized for 5 years of its estimated 15-year legal life. Which of the following statements is correct?
a. Clock Products must continue to amortize the patent over its remaining 10 years of life. b. The patent must be reduced to 5/15, or 33.3% of its original cost and amortized over the remaining 10 years. c. The remaining unamortized cost must be removed from the accounting records and treated as a loss on the income statement. d. Clock Products must correct its financial statements for the past five years, so that the entire cost is allocated to that five-year period.
The following labor standards have been established for a particular product: Standard labor-hours per unit of output 8.1hoursStandard labor rate$14.40per hourThe following data pertain to operations concerning the product for the last month: Actual hours worked 8,700hoursActual total labor cost$129,195 Actual output 1,000unitsWhat is the labor rate variance for the month?
A. $450 U B. $450 F C. $3,915 U D. $3,915 F
A "moment of truth" can be described as a situation where the customer's expectations were met
Indicate whether the statement is true or false
Ray Patel, a local DJ, bought sound equipment from Backstage Equipment Inc and paid by three post-dated cheques of $10,000 each. Backstage took out a loan for $30,000 and endorsed the cheques to its bank as security for the loan
The equipment totally failed and Patel wants to stop payment against the bank. Will he be successful? A) Yes, because the equipment did not work. B) Yes, if he put a stop payment before the due dates on the cheques C) No, because the bank is a holder in due course. D) No, because the bank actually lent $30,000 to Backstage. E) No, because the bank has a loan agreement with Backstage.