Which of the following securities could NOT have any benefits for diversification with your investment portfolio? a.Treasury bil
1 answer:
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Answer:
current share price = $5.40
so correct option is C. $5.40
Explanation:
given data
dividends paid = 15 years
pay = $6 per share
increase = 4%
to find out
current share price
solution
we know that Value after year 15 will be = ( D15 × Growth rate) ÷ (required return - growth rate) ......................1
put here value
Value after year 15 =
Value after year 15 = $52
so here current share price will be
current share price = Future dividends × Present value of discounting factor
current share price =
current share price = $5.40
so correct option is C. $5.40
Answer:
Note: <em>See attached picture for journal entry schedule for the question</em>
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Fair Value of Land = -PV(I, N, PMT, FV, Type)
Fair Value of Land = -PV(8%, 2, 16000*4%, 16000, 0)
Fair Value of Land = -PV(8%,2,640,16000,0)
Fair Value of Land = $14,859
Journal Entry
Date Account tile and explanation Debit Credit
Jan. 1 Notes Receivable $16,000
To, Discount on Notes $1,141
To, Land $14,859
Dec. 31 Cash $640
Discount on Notes $549
To, Interest Revenue (14859*8%) $1,189
Dec. 31 Cash $640
Discount on Notes $593
To, Interest Revenue (14859+549)*8% $1,233
Dec. 31 Cash $16,000
To, Notes Receivable $16,000
