Answer:
Price of stock = $49.5
Explanation:
<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return. </em>
If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:
Price of stock=Do (1+g)/(k-g)
Do - dividend in the following year, K- requited rate of return , g- growth rate
DATA:
D0- 2.7
g- 10%
K- 16%
Price of stock = ( 2.7×1.1)/(0.16-0.1) = 49.5
Price of stock = $49.5
Dep. of social security and unemployment office.
Answer:
$1 million
Explanation:
Section 179 deduction of the IRS code was enacted to help small business owners take depreciation deductions for certain assets ( capital expenditure I.e. the money spent on acquiring and maintaining fixed assets such as buildings and equipments ) in one year rather than continuous depreciation over a long period of time.
The new law increased the maximum deduction from $500,000 to $1 million.
For example: lets say you buy a computer for your office, under section 179 you can deduct the full cost of your computer in one year. This a very okay because the life span of your computer is short
Answer:
a. $2,465.82
b. $3,539.68
c. Yes, we should
Explanation:
Annual cost to maintain old forklift is $5,000
Equivalent Annual Cost (EAC) of new forklift = (Asset price x discount rate)/(1-(1+discount rate)-n), in which n is the number of year for usage of this forklift?
If discount rate is 4% per year, the EAC of new forklift is $2,465.82
= ($20,000x4%)/(1-(1+4%)-10)
If discount rate is 12% per year, the EAC of new forklift is $3,539.68
= ($20,000x12%)/(1-(1+12%)-10)
We should replace because with such above discount rate, the old forklift is more costly than the new one
The answer to this would be the 4th option. Because monopolies allow businesses to compete against each other for profit and reputation. Without monopolies, people would only choose one company over the other because it just is more superior. Monopolies is what make businesses grow, and unfortunately, they aren't a good thing at times.
