Answer:
the stock price is $58.23
Explanation:
The computation of the price pay per share today is shown below:
Stock price is
= Current year dividend ÷ (required rate of return - growth rate)
= $11.15 × (1 - 0.06) ÷ (12% - (-6%)
= $10.48 ÷ 18%
= $58.23
Hence, the stock price is $58.23
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
15.16 percent
Explanation:
Debt Equity ratio measures the ratio of the debt to its equity.
Formula for debt equity ratio is as follow
Debt / Equity ratio = Debt of the company/ Equity of the company
As per given data
Equity = $383,333.33 + 0.31($61,000) = $402,243
Debt = $61,000
Placing values in the formula
Debt / Equity ratio = $61,000 / $402,243
Debt / Equity ratio = 15.16%
Answer: Tony has explicitly breached the Implied Warranty of Fitness for a particular purpose.
Explanation: the Implied warranty of fitness for a particular purpose takes effect when a buyer specifically asks a seller for a product that can be used for a particular purpose.
Because Mark (buyer) requested for the exact type of wood that can resist wood decay caused due to the damp environment of his cabin and Tony (seller) sells Mark lumber while assuring him that it's what he is looking for. Tony's assurance to Mark is known as the Implied warranty of fitness for a particular purpose, and since the wood is affected by dampness and caves then Tony has explicitly breached the warranty.
Answer:
1. $38,435.37
2. $67,091.09
3. $126,985.63
4.$94,037.04
Explanation:
The formula for calculating future value :
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
1. $17,000 ( 1 + 0.06)^14 = $38,435.37
2. $26,000(1 + 0.09)^11 = $67,091.09
3. $38,000(1 + 0.09)^14 = $126,985.63
4. $59,000 (1+0.06)^8 = $94,037.04
I hope my answer helps you
Answer:
$505
Explanation:
Armstrong Company
Cash flow from operating activities
Adjustments to reconcile net income to operating cash flow.
Net income
$450
Less : Increase in plant and equipment
($170)
Add : Depreciation expenses
$80
Add : Payment of dividends
$10
Add : Decrease in accounts receivable
$20
Add : Increase in long term debt
$100
Less : Increase in Inventories
($15)
Add : Decrease in Account payable $30
Net Cash flow from operating activities
$505
