Answer:
$28.90
Explanation:
For computing the current stock price, first we have to determine the required rate of return which is shown below:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 4% + 1.15 × 5.50%
= 4% + 6.325%
= 10.325%
The (Market rate of return - Risk-free rate of return) is also known as market risk premium
Now the current stock price would be
= Next year dividend ÷ (Required rate of return - growth rate)
= $1.25 ÷ (10.325% - 6%)
= $1.25 ÷ 4.325%
= $28.90
Answer:
return on assets= 0.09= 9%
Explanation:
Giving the following information:
The Kingwood Company reported a net income of $40,000 and the average total assets of $440,000.
To calculate the return on assets, we need to use the following formula:
return on assets= net income / average total assets
return on assets= 40,000 / 440,000= 0.09
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Answer:yes I agree. It is my company and I don’t want to lose money!!
Explanation:
It's a long-term investment and the company owns 45% of shares of Hall Inc. Hence the company exercises significant influence over Hall Inc.
The various journal entries on the transaction occured would be made as under:
No. Account Name Debit Credit
1. Investment 1296000
Cash 1296000
2. Investment 97650
Investment income
(217000 x 45%) 97650
3. Cash 64800
Investment (1.60 x 40500) 64800
The effect on the cash flow statement will be:
Operating activities:
No effect 0
Investing activities:
Purchase of investment -1296000
Receipt of dividends 64800
The current stock price is also known as the marketplace fee. it's far the fee at which a share of inventory or every other security is ultimately traded. In an open market, the modern charge functions as a baseline . Divide equity by the wide variety of stocks issued. If, say, the company's well worth $10 million and there are 10,000 shares, the share fee of every percentage is $1,000.
Learn more about The share market here:- brainly.com/question/690070
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