Answer:
Explanation:
<em><u>H</u></em><em><u>o</u></em><em><u>p</u></em><em><u>e</u></em><em><u> </u></em><em><u>i</u></em><em><u>t</u></em><em><u> </u></em><em><u>w</u></em><em><u>o</u></em><em><u>r</u></em><em><u>k</u></em><em><u>s</u></em><em><u> </u></em><em><u>o</u></em><em><u>u</u></em><em><u>t</u></em><em><u> </u></em><em><u>!</u></em><em><u>!</u></em><em><u>!</u></em>
Answer:
The disposal resulted was at D. No gain or loss
Explanation:
The gain or loss on disposal on a fixed asset is calculated by comparing the sales proceeds from disposing off the asset and the carrying value of the asset.
The carrying value of the asset is its net book value which is calculated as follows,
Carrying value = Cost - Accumulated depreciation
If the carrying value is equal to the sales proceeds from disposal, there is no gain or loss.
The carrying value of copy machine was = 45000 - 44000 = $1000
The sales proceeds were also $1000
Thus, gain/loss on disposal = 1000 - 1000 = $0
Thus, there was no gain or loss on disposal.
Answer:
Present value = $35.00326585 rounded off to $35.00
Explanation:
Using the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the present value of the stock, we will use the following formula,
Present value = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n +
[(Dn * (1+g) / (r - g)) / (1+r)^n]
Where,
- r is the required rate of return
- g is the constant growth rate in dividends
- n is the number of years
Present value = 5 / (1+0.155) + 6.25 / (1+0.155)^2 + 4.75 / (1+0.155)^3 +
3 / (1+0.155)^4 + [(3 * (1+0.07) / (0.155 - 0.07)) / (1+0.155)^4]
Present value = $35.00326585 rounded off to $35.00