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butalik [34]
4 years ago
8

Could I Industries just paid a dividend of $1.62 per share. The dividends are expected to grow at a rate of 20 percent for the n

ext four years and then level off to a growth rate of 4 percent indefinitely. If the required return is 12 percent, what is the value of the stock today
Business
1 answer:
nata0808 [166]4 years ago
4 0

Answer:

Explanation:

Using the dividend growth model = Do(1+g)/Ke-g

Do=1.62$

G=4%

Ke=12%

Do(1+g)/Ke-g  =  2.0736(1+4%)/12%-4%

                      =   1.6848

/8%

                      =   53.916

                 Year Year Year Year Year  

                    0             1             2           3            4  

                          20%  20%  20% 20%  

Dividend             1        1.2      1.44  1.728 2.0736  

Ifninty dividend                                               55.91*  

Total Cashflows 1    1.2     1.44         1.728 55.98  

Pres.Val @12%    1     1.07142 1.14795  1.22995   35.583

     

Value of stock 40.030    

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Wildhorse Co. had the following assets on January 1, 2022. Useful Life (in years) Item Cost Purchase Date Useful Life (in years)
Naddika [18.5K]

Solution :

<u>Journal Entry</u>

Date               Account and Explanation                          Debit             Credit

1 Jan,2022   Accumulated depreciation-machine            $ 68,000

                     Machine                                                                           $ 68,000

30 June,       Depreciation expense, $\left(\frac{27000}{5} \times \frac{6}{12}\right)$              $ 2700

2022             Accumulated depreciation- Forklift                                  $ 2700

30 June,        Cash                                                             $ 11,700

2022             Accumulated depreciation- Forklift,           $ 18,900

                     $\left(\frac{27000}{5} \times 3.5 \right)$

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                    Forklift                                                                                $ 27000

31 Dec,         Depreciation expense, $\left( \frac{33400-3000}{8}\right)$        $ 3800

2022            Accumulated depreciation - Truck                                   $ 3800

31 Dec,         Accumulated depreciation - Truck,              $ 22800

2022            $\left( \frac{33400-3000}{8} \times 6\right)$

                     Loss on disposal of truck                            $ 10600

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7 0
3 years ago
All of the following are arguments against an explicit inflation targeting rule for monetary policy except:
White raven [17]

Answer:

C. An explicit target is easier to understand by households and firms which makes monetary policy more transparent.

Explanation:

Explicit inflation targeting is a monetary policy used by central banks to check inflation rate is under control for medium term. However, critics target this policy as they believe that instead central bank should have monetary policy for long term inflation control and economic growth for long term. Product price targeting or nominal income targeting would create more economic stability.

3 0
3 years ago
the consumer price index (cpi) and the gdp deflator are designed to measure the degree to which group of answer choices there ha
Ket [755]

The consumer price index (cpi) and the gdp deflator are designed to measure the degree to the cost of purchasing a bundle of goods has changed over time.

A customer is someone or a group who intends to order, or makes use of purchased goods, merchandise, or offerings basically for personal, social, own family, household and comparable desires, who is not at once related to entrepreneurial or enterprise activities.

A purchaser is the only who purchases the product for his/her own need and makes use of or consumes it. A patron can't resell the good, service or product however can eat it to earn his/her livelihood and self-employment. Definition of purchaser. The client is the one who is the stop-person of any items or services.

Learn more about consumer here:brainly.com/question/380037
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8 0
1 year ago
WT Foods stock is selling for $38 a share. The 6-month $40 call on this stock is selling for $2.01 while the 6-month $40 put is
Daniel [21]

Answer:

2.1%

Explanation:

The computation of continuously compounded risk-free rate of return is shown below:-

Continuously compounded risk-free rate of return = -In(number)

= -ln((38 + 3.60 - 2.01) ÷ 40) ÷ (6 ÷ 12)

= 0.020605786

or

= 2.1%

For a better explanation, kindly find the spreadsheet as attached.

Hence we have applied the above formula to reach the continuously compounded risk-free rate of return.

7 0
3 years ago
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Rainbow [258]

Answer:

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My internship managers have praised my ability for active learning. Therefore, I am able to listen to the patients carefully and identify their concern

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As a Secretary in a student organization, I managed to build my correspondence skills and alter the tone of communication according to the interlocutor.

<em>Providing back up to all front office positions: check in, check out, and medical records.</em>

Throughout my student experience, I have worked in numerous teams. I was always eager to help my team mates, no matter the problem.

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I gained my patience skill as a health care assistant during my internship. Even during the most cumbersome activities (which can include rescheduling and the introduction of a new patient in the clinic system), I know how to stay calm with my mind on the task.

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6 0
3 years ago
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