Answer:
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Explanation:
Answer: $32.05
Explanation:
Beta = 0.7
Dividend = $1.25
Growth rate = 4%
Risk free rate = 3%
Market return = 10%
Since, Required return = risk free rate + beta × (market rate - risk free rate)
We will then slot in the values and.this will be:
= 3% + 0.7 × (10% - 3%)
= 3% + (0.7 × 7%)
= 3% + 4.9%
=7.9%
The price of the stock will then be:
= D1/(Required return-Growth rate)
=1.25 / (0.079 - 0.04)
= 1.25 / 0.039
= $32.05
Answer: Please check in the explanation column for answer
Explanation: The entries on the appropriate dates to record the declaration and payment of cash dividend in Sheffield Corporation is given as
Nov 1.
Debit: Cash Dividends 84,000
Credit: Dividends Payable 84,000
Dec 31.
Debit: Dividends Payable 84,000
Credit: Cash 84,000
Answer:
The answer is $3,888.22
Explanation:
This is an annuity due because the cash flow is being done on the first day of each period.
Annuity is a fixed sum of money paid to or receceived from someone or business every year.
Future Value(FV) = $30,000
Interest rate(i or I/Y) = 10%
Number of years(N)= 6 years
Annuity (PMT) = ?
Using a Financial calculator to solve it (Texa BA II Plus )
Annuity (equal contributions) will be $3,888.22
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