Hi Ddestinyclark8385,
<span><u>A corporation has $80,000 in total assets, $36,000 in total liabilities, and a $12,000 credit balance in retained earnings. what is the balance in the contributed capital accounts?</u>
</span>b. $32.000
Answer:
There is no correct answer is these options. But the correct answer is $113.41
Explanation:
The formula to solve this is:
Po = D1/r - g
Po is the Current price of the common stock
D1 is the future dividend payment
r is the rate of return
g is the growth rate.
This is quite different from the usual(single stage). This is Two-stage Dividend Discount Model. To solve this;
D1(Dividend in year 1) is $3.15( $2.42 x 1.3)
D2(Dividend in year 2) is $3.78(3.15 x 1.2)
D3(Dividend in year 3) is $4.15($3.78 x 1.1)
D in subsequent years is $4.36(4.15 x 1.05)
P3(price of stock in year 3) = $4.36/0.083 - 0.05
=$132.12
Now the stock's current market value is
$3.15/1.08 + $3.78/1.08^2 + $4.15/1.08^3 + $132.12^3
The price of the stock is $113.41
<span>If the ratio of 10% and assuming that banks keep no excess reserves, imagine that $300 is deposited into a checking account, then $ 1,287 is the amount for the money supply to increase if the fed lowers the required reserve ratio to 7%.</span>