Answer:
The price of the stock today is $13.58
Explanation:
Using the dividend discount model approach, we can calculate the price of the stock today. DDM bases the price of a stock on the present value of the expected future dividends from the stock. The dividends and the terminal value are discounted back to the present value using the required rate of return on the stock. The price per share today for this stock will be,
P0 = 0.75 / (1+0.17)^3 + 0.75 * (1+0.48) / (1+0.17)^4 +
0.75 * (1+0.48)^2 / (1+0.17)^5 +
[(0.75 * (1+0.48)^2 *(1+0.1) / (0.17 - 0.1)) / (1+0.17)^5 ]
P0 = $13.584 rounded off to $13.58
Answer:
Nick pay maximum $930
so correct option is d. $930
Explanation:
given data
health care policy = $250
co-insurance provision = 80 %
it mean claim to be paid by insurance company = 80%
and claim to be paid by Nick = 20 %
co payment cap = $1,000
claim insurance = $600
company paid = $280
total bills = $5,000
to find out
How much will Nick have to pay for the second claim
solution
we get first amount to be paid by insurance company and nick is
amount to be paid by insurance company and nick = $600 - $250
amount to be paid by insurance company and nick = $350
and
we know here 80% of $350 paid by insurance company
so paid by insurance company = 80% of $350 = $280
and paid by Nick = $350 - $280 = $70
so Limit available to co payment = $1000 - $70
Limit available to co payment = $930
so Nick pay maximum $930
so correct option is d. $930
Answer:
A. Unaffected
B. Unaffected
C. Understated
D. Overstated
Explanation:
C. Understated.
Understated balance is one that is reported as having a lesser balance than it actually does. example of what could cause the situation in which cash is understated is that when check is written on the disbursing bank on the last day of December with a credit to cash, and an associated debit to some expense account so as to decrease reported profits and taxes be it (direct or indirect tjaxes) for the year.
Another example is when a utility bill that is suppose to be paid by the last day of the month but failed to record the expenses, under the accrual basis of accounting, the company should recognize the expenses now even though the bill is not yet due. Until the bill is recorded, the utilities payable is understated
d. Overstated.
An overstated balance is an account balance that is reported as having a greater balance than it actually does, example of such situation is that in which an employee has misappropriated funds during the year, and draw a check transferring funds to the account with the shortage so as to cover the shortage. As of December 31, the shortage is replaced, with no reduction as yet recorded in the account on which it is drawn.
In second example of understated, expense account is understated and because of this net income is overstated.
$1,130.28
Formula is A = P (1 + [r/n])^(nt)
A= 879 (1+ [.018/4])^(4*14)
A= 879 (1.0045)^56
A= $1,130.28
A = future total amount
P = principle (amount initially deposited)
r = the annual interest rate (decimal)
n = times that interest is compounded per year (quarterly is 4 times per year)
t = number of years
Answer:
duress
Explanation:
A contract may not be enforced it any of the parties does not give genuine or real assent, i.e. they freely agree with the contract terms.
Duress happens when one of the parties threatens to do something bad or wrong to the other party in order to force them to enter a contract. Contracts agreed under duress can be invalidated.
