Answer: Po = D1/Ke + g
$34.75 = D1/0.104 + 0.039
$34.75 -0.039 = D1/0.104
$34.711 = D1/0.104
D1 = 34.711 x 0.104
D1 = $3.61
Explanation: In this question. there is need to apply the formula for determining the current market price of a common stock. The current market price of a common stock is a function of next dividend capitalised at the appropriate cost of equity plus growth rate. in addition, we need to make the next dividend the subject of the formula.
Answer:
False
Explanation:
Green's distribution of $50,000 in to its sole shareholder at the end of the year should be treated as a dividend because Green's total earnings and profits for the year were $100,000.
A distribution from a corporation to a shareholder can only be treated as a dividend when the corporation made a profit during the current year, or has positive accumulated earnings and profits.
The Y in APY means yearly, the answer is APY
Hi.
I think the answer is the idea of opportunity cost.
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Profit of 10,750. 91,750 - 81000= 10,750/