Answer and Explanation:
The computation is shown below:
a) Growth rate = ROE × retention ratio
= 23% × (1 - .40)
= 13.80%
Value of stock = D1 ÷ (k - g)
= 0.84 × (1 + .1380) ÷ (.16 - .1380)
= $43.45
b) Revised growth rate after year 2 = 16% × .50
= 8%
Value at T2 = D3 ÷ (k - g)
D3 = Earnings × (1 + G1)^2 × (1 + G2) × Payout ratio
= 2.1 × (1+.1380)^2 × (1+.08) × .50
= 1.47
Value at T2 = 1.47 ÷ (.16 - .08)
= $18.38
Value at T0 = Value at T2 ÷ (1 + r)^n
= 18.38 ÷ (1 + .16)^2
= 13.66
Answer:
b. 77
Explanation:
The formula for forecasting is :
= 
+ (1 - 
) 
where is forecast for the period and 
is the actual demand for the period.
Last week forecast is = * Demand 2 weeks ago + (1 - ) * Forecast 2 weeks ago
0.2 * 65 + (1 - .02) * 90 = 13
Current week forecast is = * Demand Last weeks + (1 - ) * Forecast Last weeks
0.2 * 50 + (1 - 0.2) * 83 = 77.
I believe the answer is: it gives a special tax break to employees who are saving primarily for retirement.
This make the taxpayers able to maxmize their purchasing power prior to their retirement. Which allow them to do things such as putting more money down on their mortrage, improve their standard of living, increasing their life saving, or putting of some of their income in various type of investments.
A fixed asset register is nothing more than a list of fixed assets that belong to an entity. Traditionally the fixed asset register was maintained in written form by a bookkeeper using a book that was set aside specifically for that purpose. Nowadays, it is more often held in electronic format in an accounting system.
