Answer and Explanation:
The balances of the following items are as follows;
Inventory ($500,000 + $300,000 - $5,000) $795,000
Sales ($1,000,000 + $800,000 - $180,000) $1,620,000
Cost of goods sold ($500,000 + $900,000 + $5,000 - $180,000) $725,000
Operating expenses ($230,000 + $300,000 + ($78,000 ÷ 4 years) $549,500
Net income attributable to noncontrolling interest ($100,000 × 10% - $19,500 × 10% - $5,000 × 10% ) $7,550
The $5,000 comes from
= ($180,000 - $130,000) × 10%
= $5,000
Answer:
Price of share at end of year 6 = $43.94
Explanation:
Provided information we have,
Current dividend = $1
Growth rate for 6 years = 20%
Dividend at end of year 6 = $1 Future value factor of $1 @ 20% for 6 years = $1
2.985984 = $2.986 rounded off
After this dividend is supposed to grow at 3% thus Dividend at end of year 7 = $2.986 + 3% = $3.076
Therefore, using dividend growth model we have,
Where P6 = price at end of period 6 = to be calculated
D7 = Dividend paid at end of year 7 = $3.076
Ke = Required rate of return = 10%
g = constant growth rate = 3%
Thus,
P6 = $43.94
Thus, price of share at end of year 6 = $43.94