Answer:
a) 15.69%
Explanation:
The computation of the expected return is shown below:
= (Current year dividend ÷ current price) + growth rate
where,
Current year dividend = Dividend × ( 1 + dividend growth rate)
= $0.46 × (1 + 14.5%)
= $0.527
And, the other item values remain the same
Now put these values to the above formula
So, the value would be equal to
= ($0.527 ÷ $44.12) + 0.145
= 15.69%
The party that is liable for the loss is the BANK. This is because, the bank is liable for forged checks, if it fails to verify the signature on the check very well. It is written in the law that a payor bank that pays a check with a forged payee signature has paid a check that is not properly payable and is liable to its customer.
Answer:
2.072 rights
Explanation:
Amount needed to buy the land = $8.6 million = $8,600,000
stock outstanding = 540,000
Market price per share = $34.80
subscription price = $33 a share
Now,
Number shares to be issued = ( Amount needed ) ÷ ( subscription price )
= $8,600,000 ÷ $33
= 260606.06 shares
1 rights will be issued per stock
thus,
number of rights required for purchase
= ( stock outstanding ) ÷ ( Number shares to be issued )
= 540,000 ÷ 260606.06
= 2.072 rights
Answer:
58.81% annual
or 3.93% monthly
Explanation:
Using a financial calculator, we can determine the internal rate of return of this investment. The initial outlay is -$110,000, and the 60 $4,800 cash flows follow. The IRR is 3.93 per month. In order to determine the effective annual rate, we can use the following formula:
effective annual rate = (1 + 3.93%)¹² - 1 = 58.81%
Answer: $300,000
Explanation:
Total expected costs = cost incurred to date + estimated cost to complete
= 1,200,000 + 3,600,000
= 4,800,000
= 0.25
= 25%
Profit = contract revenue - Total expected costs
= $6,000,000 - 4,800,000
= $1,200,000
Cumulative gross profit = Profit × Percentage of completion
= $1,200,000 × 0.25
= $300,000
Therefore, Red Builders should have recognized profit at the end of year 1 in the amount of $300,000.
