Answer:
the stock price is $58.23
Explanation:
The computation of the price pay per share today is shown below:
Stock price is
= Current year dividend ÷ (required rate of return - growth rate)
= $11.15 × (1 - 0.06) ÷ (12% - (-6%)
= $10.48 ÷ 18%
= $58.23
Hence, the stock price is $58.23
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
are $270 billion
Explanation:
Change in business inventories in 2012 = -$70 billion
GDP of 2012 = $200 billion
Final sales in 2012 = GDP - Change in inventory
Final sales in 2012 = $200 billion - (- 70 billion )
Final sales in 2012 = $200 Billion + 70 billion
Final sales in 2012 = $270 billion
Hence proved that the correct answer is $270 billion
Answer:
1) The yield to maturity is required rate of return on a bond expressed as a nominal annual interest rate. For noncallable bonds, the yield to maturity and required rate of returns are interchangeable terms
2) Unlike YTM and required return, the coupon rate used as the interest rate in bond cash flow valuation, but is fixed percentage of par over the life of the bond used to set the coupon payment amount.
3) The coupon rate is constant at 10%. The YTM is 8%.
Explanation:
Answer:
$67.1 million
Explanation:
Given that,
Projected benefit obligation at the beginning of 2021 = $51 million
Service cost = $18 million
Retiree benefits = $7 million
Projected benefit obligation at December 31, 2021:
= Beginning of 2021 + Service cost + Interest cost - Retiree benefits
= $51 million + $18 million + (10% × $51 million) - $7 million
= $51 million + $18 million + $5.1 million - $7 million
= $67.1 million
Answer:
The carrying value of the bonds immediately after the first interest payment is $434,300.
Explanation:
Face value of the bond = $440,000
Proceeds from bond issue = $434,000
Discount on bond payable = Face value of the bond - Proceeds from bond issue = $440,000 - $434,000 = $6,000
Total number of seminual = Number of years of bond maturity * Number of semiannual in a year = 10 * 2 = 20
Discount amortizaton per semiannual = Discount on bond payable / Total number of seminual = $6,000 / 20 = $300
Carrying value after first interest payment = Proceeds from bond issue + Discount amortizaton per semiannual = $434,000 + $300 = $434,300
Therefore, the carrying value of the bonds immediately after the first interest payment is $434,300.
