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Lostsunrise [7]
3 years ago
15

Green Glass recently pays dividends. Future dividends are projected at $2.5, $3.5, and $4.5 over the next three years, respectiv

ely. Beginning four years from now, the annual dividend is expected to grow at 4% annually forever. What is one share of this stock worth to you today if you require a 12 percent rate of return on similar investments?
Business
1 answer:
Evgen [1.6K]3 years ago
4 0

Answer:

The price of one share of such a stock today is $49.86

Explanation:

The stock's price today under the Dividend discount model can be calculated by discounting the expected future dividends to the present value using an appropriate discount rate. When the dividend growth becomes constant, we calculate the terminal value and discount it back too. The appropriate discount rate is the required rate of return. The worth of one of such stock today is,

V0  =  2.5 / (1+0.12)  +  3.5 / (1+0.12)^2  +  4.5 / (1+0.12)^3  +  

[4.5 * (1+0.04) / (0.12 - 0.04)]  /  (1+0.12)^3

V0 = $49.86

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Indiana Co. began a construction project in 2021 with a contract price of $150 million to be received when the project is comple
Over [174]

Answer:

Recognize $ 1.50 millions gross profit in 2022

Explanation:

 

                                        Year end 2021         Year end 2022

A  Contract Price               $150.00                          $150.00

B  Cost Incurred to Date    $36.00                             $94.50

                                                                                ($36 + $58.50)

C  Estimated cost yet to be

incurred to complete

the contract                        $84.00                              $0.50

Total Cost                          $120.00                              $135.00

D = B+C  

Percentage of Completion  30.00%                            70.00%

E = (B ÷ D) × 100

Revenue to date                  $45.00                             $105.00

F = A × E

G  Revenue of Previous year    $-                                $45.00

Net Revenue this year            $45.00                         $60.00

H = F - G

Cost to date                            $36.00                           $94.50

I (=B)

J  Cost to date of previous year $-                               $36.00

Net Cost for the year               $36.00                           $58.50

K = I - J

Gross Profits                              $9.00                            $1.50

L = H - K

Therefore the correct answer is Recognize $ 1.50 millions gross profit in 2022 hence, option is not available.

3 0
3 years ago
Forecasts used for new product planning, capital expenditures, facility location or expansion, and R&D typically utilize a
Triss [41]

Answer:

c.long-range time horizon.

Explanation:

Forecasts consider long-range time horizon to improve accuracy and provide more authenticity.

3 0
3 years ago
Define communism. What is the difference between communism and a command economy?
Alex Ar [27]

Answer:

In a true communist economy, the community makes decisions. In most communist countries, the government makes those decisions on their behalf. This system is called a command economy.

5 0
2 years ago
The manager of Belle Home Improvements purchased several cash registers for the business on June 10 but does not remember whethe
mezya [45]

Answer:

The best place to get information about the transaction is the general journal.

Explanation:

The best place for the manager to get information about the transaction is the general journal.

The journal in accounting is a record of financial transactions in order by date. The general journal is a day book that records transactions as it relates to adjustment entries, opening stock, accounting errors. Entries in general journal includes dates and explanation of transaction called narration.

The manager can find out if he paid fully for the transaction by going through the narration in the general journal.

7 0
2 years ago
An example of factory overhead is (electricity used to run assembly line, CEO salary). electricity used to run assembly line
mafiozo [28]

Answer:

b

Explanation:

8 0
3 years ago
Read 2 more answers
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