Answer:
$31.35 (Approx)
Explanation:
Require a return on company's stock = 9.6%
Dividend:
Year 1 = $5.20
Year 2 = $9.30
Year 3 = $12.15
Year 4 = $13.90
Therefore,
Stock price:
= Future dividends × Present value of discounting factor(rate%,time period)
= $31.35 (Approx)
Answer:
2.4
Explanation:
Frontier corporation sells unit for $57
The unit variable cost is $29
Fixed cost is $164,000
Frontier sells 10,000 units
The first step is to calculate the contribution margin
= 57-29×10,000
= 28×10,000
= 280,000
Profit = 280,000-164,000
= 116,000
Degree of operating leverage can be calculated as follows
= 280,000/116,000
= 2.4
Answer:
(9,594)
Explanation:
The net cash movement during a period the sum of cashflow from operations (CFO), cashflow from investing activities (CFI) and cashflow from financing (CFF) activities. On the other hand, that net cash movement is also calculated as the difference between end of year cash position and start of year cash position. Given that, we have the equation as below:
End of year cash position - Start of year cash position = CFO + CFI + CFF
Putting all the number together, we have:
7,102 - 6,836 = 15,435 - 5,575 + CFF
Solve the equation, we have CFF = (9,594)
Answer:
Cost of equity will be 12.96 %
Explanation:
We have given current price of the stock = $32.45
Expected dividend 
in one year
Growth rate 
We have to find the cost of equity
Cost of equity is given by
Cost of equity 
= 12.96 %
Answer:
Since a defeasance clause conveys title upon satisfaction of the loan, these types of clauses are typically only used in title theory states where the bank holds ownership of the home until the mortgage is paid off.
