Answer:
r = 0.10666841 or 10.666841% rounded off to 10.67%
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0* (1+g) / (r - g)
Where,
- D0 * (1+g) is dividend expected for the next period
- r is the required rate of return
By plugging in the available values for P0, D0 and g, we can calculate the value of r to be,
76.48 = 4.32 * (1+0.0475)/ (r - 0.0475)
76.48 * (r - 0.0475) = 4.5252
76.48r - 3.6328 = 4.5252
76.48r = 4.5252 + 3.6328
r = 8.158 / 76.48
r = 0.10666841 or 10.666841% rounded off to 10.67%
3.6 / 40 = g
g = 0.09 or 9%
Create something such as wood
Finger enter me . Named asnumber 8
<span>Earned income typically includes salaries and bonuses, wages, commissions and tips. Union strike benefits are also considered earned income, as are long-term disability benefits received prior to minimum retirement age. So yes</span>
Answer:
a. Using the cash basis of accounting:
Cash received from customer $280,000
Cash received for future service <u>$12,000</u>
Total gross income <u>$292,000
</u>
b. Using the accrual basis of accounting:
Service revenue = ($280,000 - $40,000 + 60,000) = $300,000
Gross income $300,000
c) AI should use cash accural basis of accounting so that he will not have to pay income taxes on uncollected accounts receivable.
