Answer:
$31.9211
Explanation:
We discount the future two year dividends at the required rate of return
and solve for the present value of the infinite series of dividends growing at 3.6% with the dividend grow model:
PV 33.6
Then we discount this by the two years ahead of time these cashflow start and add them to get the PV of the stock which is their intrinsic market value
![\left[\begin{array}{ccc}Year&cashflow&PV\\&&\\1&3&2.7027\\2&2.4&1.9479\\2&33.6&27.2705\\&TOTAL&31.9211\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccc%7DYear%26cashflow%26PV%5C%5C%26%26%5C%5C1%263%262.7027%5C%5C2%262.4%261.9479%5C%5C2%2633.6%2627.2705%5C%5C%26TOTAL%2631.9211%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Even though the company is no longer able to pay the retirees, they are still protected because <u>The </u><u>Pension Benefit Guarantee Corporation</u><u> will pay a </u><u>basic benefit. </u>
<u />
The Pension Benefit Guarantee Corporation:
- Was created to protect the pensions of millions of Americans
- Provides a basic benefit to pensioners who need pension payments when their companies no longer pay them
The basic benefit is a percentage of the benefits the retirees receive from their normal plan so it is not much. Retirees will often have to supplement this option.
In conclusion, The <u>Pension Benefit Guarantee Corporation </u>will pay out something to the retirees.
<em>Find out more at brainly.com/question/7331178. </em>
Answer:
$2.10
Explanation:
The computation of the cost per equivalent unit for direct material is shown below:
= (Direct material cost + Beginning inventory cost) ÷ (equivalent units for the materials)
where,
Equivalent units would be
= Completed and transferred units + beginning work in progress units + additional units
= 25,000 + 110,000 + 30,000
= 165,000 units
And, all the other things would remain the same
= ($253,000 + $93,500) ÷ (165,000 units)
= $2.10
Since all the units are completed with 100% and we consider it same
Answer:
<em>$18.29</em>
Explanation:
It is very simple as per the question to calculate the current stock price.
The formula for calculating the Stock price is,
P = D/(r-g)
Hence, we calculate as follows,
Price = 0.75/(0.105-0.064)
Price = 0.75/0.041
<u><em>Price = $18.29</em></u>
<u><em /></u>
<u><em>Good Luck.</em></u>
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