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Romashka-Z-Leto [24]
1 year ago
12

how much of a stock's $30 price is reflected in pvgo if it expects to earn $4 per share, has an expected dividend of $2.50, and

a required return of 20%?
Business
1 answer:
Kruka [31]1 year ago
7 0

The amount of the stock price that will be reflected in the PVGO is $10

The value of an organization's potential future growth is symbolized by the acronym PVGO, or "present value of growth opportunities." It represents the potential value for the organization by reinvesting its earnings back into the business.

Expected Dividend payment (D) = $2.50

Total Earnings (E) = $4

Rate of return (ROR) = 20%

Step 1. Using no growth rate (GR), computing the stock price (SP)

Since the growth rate is not specified, 0% is taken as the default value.

The stock price (SP) = E/ROR

= $4 / 20%

Stock price = $20.

Step 2. Computing the SP reflected in PVGO.

So, total SP with no GR

= $30 - $20

Stock price with no growth rate = $10

Hence, the $10 will be reflected in the PVGO

Learn more about PVGO:

brainly.com/question/28434542

#SPJ4

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Answer:

Given:

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Deferred income tax liability = Book depreciation × Enacted rate

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During 2022, Crane Company entered into the following transactions.
Anastasy [175]

Answer:

Assets = Liabilities + Stockholders' Equity = $206,670

Explanation:

Note: See the attached excel file for the analysis of the tabular analysis of the effect of each transaction on the accounting equation.

From the attached excel file, we have:

Assets = = – $172,670 + 68,620 + $310,720 = $206,670

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4 0
3 years ago
Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 4.2 pound
Eduardwww [97]

Answer and Explanation:

The computation of the contribution margin per pound for each of the three products is shown below:

As we know that

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For Product S5

= $108.92 - $90

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For Product G9

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= $69.55

Now the contribution margin per pound is  

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For Product S5 =  Contribution margin ÷ Pound  

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