Answer:
$61.29
Explanation:
Calculation for what Storico Co. Share of stock will sell today.
Since we have a stock that has a normal growth in which the dividend growth changes every year for the first four years. We can therefore find the price of the stock in Year 3 because the dividend growth rate is constant after the third dividend, which means the price of the stock in Year 3 will be the dividend we are going to use in Year 4, we shall then divide it by the required return less the constant dividend growth rate.
Therefore the price in Year 3 will be calculated as :
P3= $3.15(1.20)(1.15)(1.10)(1.05) / (.12 – .05)
P3= $5.020785/0.07
P3=$71.72
Let find the price of stock today using the PV of the first three dividends in addition with the PV of the stock price in Year 3:
Hence,
P0= $3.15(1.20)/(1.12) + $3.15(1.20)(1.15)/1.12^²+ $3.15(1.20)(1.15)(1.10)/1.12^³+ $71.72/1.12^³
P0=$3.78/1.12+$4.347/1.2544+$4.7817/1.404928+$71.72/1.404928
P0=$3.375+3.465+3.4035+$51.048
P0= $61.29
Therefore if the required return on the company’s stock is 12% what the share of stock will sell for today will be $61.29
Most new jobs in the United States will be in the solar foundation and solar employees anticipated adding 30,000 more worker in 2016 an increase of 14.6%.
<span>i think that increase the inventory is the best option because is more posible a opportunity to sell when there are a lot to sell</span>
Answer:
Explanation:
amount to be recorded as a right-of-use asset and the associated lease liability =[PVAD8%,3*Annual payment ]+[PVF8%,3*purchase price] =[2.78326*15,000
Answer:
Cash flows from operating activities for 2016
Particulars Amount
Net income $1,269,000
<em>Adjustments</em>
Depreciation expense $159,000
Increase in accounts receivable -$152,000
Decrease in inventories $108,000
Decrease in prepaid expenses $62,000
Decrease in salaries payable -$30,000
Increase in income taxes payable <u>$44,000 </u> <u>$32,000</u>
Net cash inflow from operations <u>$1,460,000</u>
