Owen Conner works part-time packaging software for a local distribution company in Indiana. The annual fixed cost is $10,000 for
1 answer:
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Answer:
$190.64
Explanation:
Data provided in the question:
Current selling price of shares = $180 per share
Dividend paid = $10.18
Expected growth rate, g = 6% = 0.06
Required rate of return, r = 12% = 0.12
Now,
The dividend for the following year to the next year, D1 = $10.18 × (1 + g)ⁿ
here, n = 2 ( i.e the duration of next year and the following year )
thus,
D1 = $10.18 × (1 + 0.06)²
or
D1 = $11.438
Therefore,
Price of stock one year from now =
=
= 190.637 ≈ $190.64
Answer:
a. Contribution from Berry = $6,000
b-1. Contribution from Hammond = $22,556
b-2. Disbursement shall be:
Anderson = $8,889
Berry = $3,667
c. Amount to be received by Anderson on Liquidation = $11,500
Explanation:
As for the provided information we have,
Capital balances
Anderson 40% $20,000
Berry 30% $12,000
Hammond 20% $17,000 (Deficit)
Winwood 10% $25,000 (Deficit)
a. Total deficit in this case will be = Share of Hammond + Winwood = $17,000 + $25,000 = $42,000
Berry's share =
Since Berry's current balance = $12,000
Contribution required = $18,000 - $12,000 = $6,000
b-1. Total deficit of Winwood = $25,000
Hammond share =
Hammond's current balance = - $17,000
Thus, contribution from Hammond = $5,556 + $17,000 = $22,556
b-2. Total deficit balance = $17,000 + $25,000 = $42,000
Total sufficient balance = $20,000 + $12,000 = $32,000
Net deficit balance = $42,000 - $32,000 = $10,000
Anderson share in Deficit of Winwood =
Thus, net capital of Anderson = $20,000 - $11,111 = $8,889
Berry's share in deficit of Winwood =
Thus, net capital from Berry = $12,000 - $8,333 = $3,667
c. Total deficit from Hammond = $17,000
Anderson share =
Anderson's current balance = $20,000
Amount extra contributed by Anderson = $20,000 - $8,500 = $11,500
Thus, Anderson will receive $11,500 on liquidation.
Final Answer
a. Contribution from Berry = $6,000
b-1. Contribution from Hammond = $22,556
b-2. Disbursement shall be:
Anderson = $8,889
Berry = $3,667
c. Amount to be received by Anderson on Liquidation = $11,500