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3 years ago

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Stoneheart Group is expected to pay a dividend of $3.05 next year. The company's dividend growth rate is expected to be 4.5 perc

ent indefinitely and investors require a return of 11.1 percent on the company's stock. What is the stock price?

1 answer:

Brums [2.3K]3 years ago

7 0

$2.51 I think idk I need more info

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Turnbull Corp. is in the process of constructing a new plant at a cost of $30 million. It expects the project to generate cash f

Nataliya [291]

Answer:

The net present value of this project is $1<u>3,587,962.96</u>

Explanation:

<em>The </em><em>Net present value (NPV)</em><em> is the difference between the present value of cash inflows and the present value of cash outflows from a decision. A positive NPV indicates a profitable investment and a negative the opposite.</em>

<em>We can be work out the NPV of Turnbull Corp as follows</em>

Present Value

Year 1 13000,000× *(1.2^(-1) = 10,833,333.3

Year 2 23,000,000 × 1.2^(-2) = 15,972,222.22

Year 3 29,000,000 × 1.2^( -3) = <u>16,782,407.41 </u>

Total PV of cash inflows 43,587,963.0

Less the PV of cash outflow <u> (30,000,000)</u>

Net Present Value (NPV) <u>13,587,962.96</u>

The net present value of this project is $1<u>3,587,962.96</u>

8 0

3 years ago

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XYZ Company leased equipment to West Corporation under a lease agreement that qualifies as a finance lease to West but not as a

melomori [17]

Answer:

132,000$ will be recorded by west as amortization expense for the year.

Explanation:

Depreciation/amortization is systematic allocation of cost of asset over its useful life. In this case asset cost is not given so we assume that PV of lease payment is equal to market value (660,000 dollars) of asset.

In case of leased asset the useful life taken for calculation of depreciation is lower of 1) Useful life 2) Lease term as per applicable accounting standards.

So we have taken 5 years to charge depreciation on Straight line method.

Hence by dividing 660000 by five we get our answer.

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3 years ago

Kerry wants to start a business to sell handmade jewelry. She is very competent at making the jewelry and teaching others to mak

torisob [31]

Your answer is.......C) Natalie, who has business experience with accounting, management, and marketing

3 0

3 years ago

What is resource partitioning?

Anestetic [448]

Answer:

See explanation below foe answer.

Explanation:

Resource partitioning is a term that refers to the division of resources that are limited by species in order to avoid competition in an ecological niche. In an environment where organisms are in constant competition for limited resources, there arises the need for the organisms and different species to find ways in which to coexist with one another.

An example of Resource Partitioning be seen when two species of hummingbirds in a tropical rainforest, each using flower nectar as their main source of food. But, individuals of the same species can compete with each other also.

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3 years ago

Summerdahl Resort’s common stock is currently trading at $36 a share. The stock is expect- ed to pay a dividend of $3.00 a share

Zigmanuir [339]

Answer:

<u>Cost of common equity is 0.1333 or 13.3%</u>

Explanation:

P= D1/(r-g)

D1=3.00

g= 0.05

P=36

Here we have ,

3.00/(r-0.05) = 36

r-0.05= 3/36= 0.08333

r= 0.1333= 13.33%

6 0

3 years ago

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