The process of writing SMART goals is carried out at which stage of the personal financial management pyramid?

Professor Bai is worried about his job security, and has started to venture into a new startup. Perhaps surprisingly, he is able

zvonat [6]

Answer:

Explanation:

Price is sum of:

1. Present value of expected dividend payments during 1-4 years;

2. Present value of the expected market price at the end of the fourth year based on growth at 5%.

Present value of expected dividend payments during 1-4 years:

PV1 = 3*(1+0.30)*0.8929 = 3.90*0.8929 = $3.482

*0.8929 = 1/1.12

PV2 = 3.90*1.30*0.7972 = 5.07*0.7972 = $4.042

PV3 = 5.07*1.30*0.7118 = 6.591*0.7118 = $4.691

PV4 = 6.591*1.30*0.6355 = 8.5683*0.6355 = $5.445

Total = $17.661

Present value of the expected market price at the end of the fourth year:

Market price of the share at the end = 5th year dividend/(Required rate of return - growth rate)

5th year dividend = $8.5683*(1+growth rate) = $8.5683*(1+0.05) = $9

Market price of the share at the end = $9/(0.12-0.05) = $128.57

Present value of $128.57 is 128.57*0.6355(present value interest factor for year 4) = $81.7

So the price of share is $17.661+$81.7 = $99.37

8 0

3 years ago

ABC Lumber spent $1,000 cutting down a tree. The result was 40 unfinished logs that sell for $20 each and 100 bags of sawdust th

CaHeK987 [17]

Answer: below

Explanation:

- The sawdust should be sold as is without being processed into Presto

Logs.

- The pieces of unfinished lumber should be processed

8 0

3 years ago

Meir, Benson and Lau are partners and share income and loss in a 3:2:5 ratio. The partnership's capital balances are as follows:

sertanlavr [38]

Answer:

Journal Entry

a) Debit Capital- Benson $138,000 Credit Capital-North $138,000

b) Debit Capital- Benson $138,000 Credit Capital-Schmidt $138,000

c) Debit Capital-Benson $138,000 Credit Bank $138,000

d) Debit Capital-Benson $138,000 Debit Capital-Meir $28,500 Debit Capital-Lau $47,500 Credit Bank $214,000

e) Debit Capital-Benson $138,000 Debit Accumulated Depreciation $23,000 Credit Cash $30,000 Credit Equipment $70,000 Credit Capital-Meir $22,875 Credit Capital-Lau $38,125

Explanation:

a and b are the same with the same amount of capital transferred from one partner to another partner, it is just a matter of derecognizing Benson and recognize North or Schmidt.

c) Partner Benson is paid cash her capital,

d) decrease in meir's Capital = 214,000-138,000 = 76,000*3/8= $28,500

Decrease in Lau's Capital Account = $76,000 5/8 = 47,500

Excess funds are taken from capitals or income summary account of the partnership which will affect the capitals of the remaining partners

e) Meir's Capital = $138,000 -(70,000-23,000+30,000)

= $138,000-77,000

= $61,000*3/8 =$22,875

Lau = $61,000*5/8 =38,125

The Capital Accounts of the remaining partners will increase because of the gain made on buying out the leaving partner.

8 0

4 years ago

Consumption is $5.5 trillion, investment is $1 trillion, government expenditures are $1.5 trillion, transfer payments are $.5 tr

hammer [34]

<span>GDP = C + I + G + NX = $5.5 trillion + $1 trillion + $1.5 trillion + $.75 trillion - $1.25 trillion = $7.5 trillion

Business is hard T^T</span>

6 0

3 years ago

In business, which of the following tones should be part of every written communications? a. Funny b.Vague c.Sarcastic d.polite

dlinn [17]

Answer:

Polite

Explanation:

8 0

3 years ago