Answer:
current share price = $5.40
so correct option is C. $5.40
Explanation:
given data
dividends paid = 15 years
pay = $6 per share
increase = 4%
to find out
current share price
solution
we know that Value after year 15 will be = ( D15 × Growth rate) ÷ (required return - growth rate) ......................1
put here value
Value after year 15 = 
Value after year 15 = $52
so here current share price will be
current share price = Future dividends × Present value of discounting factor
current share price = 
current share price = $5.40
so correct option is C. $5.40
Answer:
Total Assets Turnover Ratio
Answer:
Estimated indirect costs allocation rate= $14 per direct labor hour
Explanation:
Giving the following information:
Estimated direct labor hours= 23,000
Estimated indirect costs= $322,000.
To calculate the allocation rate, we need to use the following formula:
Estimated indirect costs allocation rate= total estimated indirect costs for the period/ total amount of allocation base
Estimated indirect costs allocation rate= 322,000/23,000
Estimated indirect costs allocation rate= $14 per direct labor hour
A. Employers. A fidelity bond is a form of business insurance that offers an employer protection against losses that are caused by its employees
Answer:
Happy Frog Inc.
Modified Internal Rate of Return (MIRR) = (Future value of positive cash flows / present value of negative cash flows) (1/n) – 1
= ($1,400,000 /-$1,198,700) (1/5) - 1
= -1.167932 x -0.8
= 0.934
MIRR = 9.34%
Explanation:
a) Future Value of positive cash flows:
1 $300,000
3 $660,000
4 $440,000
Total $1,400,000
b) Present value of negative cash flows:
0 -$762,000
2 -$436,700 ($550,000 x 0.794)
Total -$1,198,700
c) The Modified Internal Rate of Return for Happy Frog Inc. is greater than its Weighted Average Cost of Capital. Therefore, the project looks very promising and should be accepted.
