Answer: 9.08%
Explanation:
Using the Gordon Growth model, a required return on a stock can be calculated if the stock price, next dividend and constant growth rate is given.
Stock Price = 
37 = 
37(r - 0.04) = 1.88
r - 0.04 = 1.88/37
r = 1.88/37 + 0.04
r = 9.08%
Answer:
PV= $230,148.09
Explanation:
Giving the following information:
You will receive 27 annual payments of $22,500. The first payment will be received 7 years from today and the interest rate is 5.1 percent.
First, we need to calculate the final value of the payments. We need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual pay= 22,500
n= 27
i= 0.051
FV= {22,500*[(1.051^27)-1]}/ 0.051
FV= $1,248,819.52
Now, we can calculate the present value:
PV= FV/(1+i)^n
PV= 1,248,819.52/ (1.051^34)
PV= $230,148.09
Answer:
67.29%
Explanation:
The computation of the contribution margin ratio is shown below:
Contribution margin ratio = (Contribution margin) ÷ (Sales) × 100
where,
Contribution margin equals to
= Total sales - variable cost
= $214,000 - $70,000
= $144,000
So, the Contribution margin ratio is
= ($144,000) ÷ ($214,000) × 100
= 67.29%
Answer:
d. wood
Explanation:
A Class C-item refers to items that have the lowest consumption value which is the lower 5% of the annual consumption value and it applies to the 50% of the total inventory items. Therefore based on this information and the information provided within the question it can be said that the class C item in this scenario would be wood.
Answer:
c. Debit to Long Term investments for $2,250
Explanation:
The investment have increased therefore it will be debited with corresponding effect to unrealized gain on such investment.
Option C is correct.
