Using the dividend valuation method, an analyst determines the value of Company A's stock to be
$10 and the value of Company B's stock to be $14. Based on this information, which of the following
statements is most accurate?
A) Company B's required rate of return is higher than Company A's required return.
B) Other things being equal, if Company A and Company B have the same firm value, Company
A may have more shares of stock outstanding than Company B.
C) Company B must be riskier than Company A, and risk requires a reward.
D) Other things being equal, if Company A and Company B have the same firm value, Company
B must have more debt, thus leveraging its returns for the benefit of shareholders.
B
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On January 1, 2017, Everlight Corp
has the following account balances: Accounts Receivable 20,000 Allowance for Bad Debts 1,200 Bad Debts Expense During the year, Everlight has $155,000 of credit sales, collections of credit sales of $143,000, and write-offs of $3,300. It records bad debts expense at the end of the year using the aging-of-receivables method. At the end of the year, the aging analysis shows that $1,700 is the estimate of uncollectible accounts. Before the year-end entry to adjust the bad debts expense is made, the balance in the Allowance for Bad Debts expense is ________. A) a debit of $2,100 B) a credit of $4,500 C) a zero balance D) a debit of $3,300
What are the implications for marketers given that mobile users spend over 70% of their smartphone time using apps and that on average, users only use about 26 apps a month?
What will be an ideal response?