Answer:
$50.8
Explanation:
As per given Data
Dividend Paid = $3
Worth of the stock is the present value of all the cash flows associated with the stock. Dividend is the only cash flow that a stock holder receives against its investment in the stocks. We need to calculate the present values of all the dividend payments.
Formula for PV of dividend
PV of Dividend = Dividend x ( 1 + growth rate )^n x ( 1 + r )^-n
1st year
PV of Dividend = $3 x ( 1 + 20%)^1 x ( 1 + 14% )^-1 = $3.16
2nd year
PV of Dividend = $3 x ( 1 + 20%)^2 x ( 1 + 14% )^-2 = $3.32
3rd year
PV of Dividend = $3 x ( 1 + 20%)^3 x ( 1 + 14% )^-3 = $3.50
After three years the dividend will grow at a constant rate of 5%, so we will use the following formula to calculate the present value
PV of Dividend = [ $3 x ( 1 + 20%)^3 x ( 1 + 5%) / ( 14% - 5% ) ] x [ ( 1 + 14% )^-3 ]
PV of Dividend = $40.82
Value of Stock = $3.16 + $3.32 + $3.50 + $40.82 = $50.8
Answer:
A.indemnification, the company may reimburse them for legal fees and judgments.
$2712000 are the creditors’ claims on their assets.
The given assets = $4393000, common stock = $1077000, retained earnings = $604000, creditor's = ?
libilities = assets
creditors + common stock + retained earnings = assets
creditors + $1077000 + $604000 = $4393000
creditors + $1681000 = $4393000
creditors = $4393000 - $1681000
creditors = $2712000
Hence, creditors' claim on their assets is $2712000.
Still, a car is an assets if it's cheaper than what you paid for it because it's readily available on the market and can be turned into cash. That alone, by definition, makes it an asset. It's these additional costs and constant depreciation that make a car worthless.
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Answer:
C. Selecting items and tracing back to source documents.
If Buchi owns several financial instruments: stocks issued by seven different companies, plus bonds issued by four different companies, her investments are best described as a PORTFOLIO
A range of investments owned by an individual is termed a portfolio.
For instance, when an individual owns different stocks, bonds, and businesses in diverse companies, such an individual is known to have a portfolio.
Portfolios are important for long-term financial goals even though the returns on such portfolios are not immediate.
According to the question, if Buchi owns several financial instruments: stocks issued by seven different companies, plus bonds issued by four different companies, her investments are best described as a PORTFOLIO
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