Monaco Manufacturing does not currently pay a cash dividend, but it does pay a stock dividend of 5% per year. A stock dividend does not directly pay cash to the shareholders. Instead it is a payment in the form of additional shares of stock. For example, if you own 100 shares, a 5% stock dividend will mean that you will receive 5 new shares, giving you a total of 105 shares. Monaco will not pay a cash dividend, and will maintain the 5% per year stock dividend for 5 years. Monaco will then discontinue the stock dividend and institute a cash dividend of $5 per share, starting in year 6. In subsequent years the cash dividend will increase at a constant growth rate of 2% per year. The appropriate interest rate is 11% per year. Calculate the current intrinsic or fundamental value of a share of Monaco Manufacturing stock.

Highland company produces a lightweight backpack that is popular with college students. standard variable costs relating to a single backpack are given below

Required prepare the necessary adjusting entries in the general journal as of december 31, assuming the following: on september 1, the company entered into a prepaid equipment maintenance contract. birch company paid $3,400 to cover maintenance service for six months, beginning september 1. the payment was debited to prepaid maintenance. supplies on hand at december 31 are $3,900. unearned commission fees at december 31 are $7,000. commission fees earned but not yet billed at december 31 are $3,500. (note: debit fees receivable.) birch company's lease calls for rent of $1,600 per month payable on the first of each month, plus an annual amount equal to 1% of annual commissions earned. this additional rent is payable on january 10 of the following year. (note: be sure to use the adjusted amount of commissions earned in computing the additional rent.)

Exercise 18-15 sheffield appliance center is an experienced home appliance dealer. sheffield appliance center also offers a number of services for the home appliances that it sells. assume that sheffield appliance center sells ovens on a standalone basis. sheffield appliance center also sells installation services and maintenance services for ovens. however, sheffield appliance center does not offer installation or maintenance services to customers who buy ovens from other vendors. pricing for ovens is as follows. oven only $790 oven with installation service 850 oven with maintenance services 970 oven with installation and maintenance services 990 in each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $180. additionally, the incremental amount charged by sheffield appliance center for installation approximates the amount charged by independent third parties. ovens are sold subject to a general right of return. if a customer purchases an oven with installation and/or maintenance services, in the event sheffield appliance center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $790. assume that a customer purchases an oven with both installation and maintenance services for $990. (b) indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract.