Answer:
$63.01
Explanation:
The share price today is the present value of expected future cash flows which in this case are the expected future dividends and the terminal value of dividends beyond the 3rd year.
Year 1 dividend =$2.2
Year 2 dividend =$3.9
Year 3 dividend =$4.8
Terminal value=Year 3 dividend*(1+constant growth rate)/(required rate of return-constant growth rate)
constant growth rate=2%
the required rate of return=9%
Terminal value=$4.80*(1+2%)/(9%-2%)
Terminal value=$69.94
Present value of a future cash flow=cash flow/(1+required rate of return)^n
n is 1 for year 1 dividend, 2 for year 2 dividend , 3 for year 3 dividend, and terminal value(terminal value is stated in year 3 terms)
stock price=$2.2/(1+9%)^1+$3.9/(1+9%)^2+$4.8/(1+9%)^3+$69.94/(1+9%)^3
stock price=$63.01
Answer:Current Ratio=4.5
Explanation:
Current Ratio = Current Assets / Current Liabilities
Current assets = Cash + Marketable Securities + Accounts and Notes Receivable+ Inventories + Prepaid expenses
= $280,000 +$131,000 + $395,000 + $570,000 + 19,000=$1,395,000
Current liabilities = Accounts and Notes Payable (short-term) + Accrued Liabilities
=$250,000 + $60,000= $310,000
Current ratio = $1,395,000 / $310,000= Current Ratio
Answer:
info graphics
Explanation:
this are ways to present complex business ideas by visualizing data to capture the attention of the audience.
Given:
Years to maturity =n= 20
Coupon rate = C = 7.8%
Frequency of payment =m= 2
Semiannual coupon = $1,000 × (0.078/2) = $39.00
Current market rate =i= 7%
Present value of bond = P
Price of bond = 0.078 x 1000 x (1 – (1 + 0.07)^-20/0.07 + 1000/ (1.07) ^20= 78 x 10.60= 826.33 + 258.42= 1,084.75
The correct answer is: $1,085
Identifying the target audience.
