The expected share price after the third dividend is GH¢ 20.22
What is stock price?
The stock price can be determined as the present value of future dividends, years 1-3 and the present value of all dividends beyond year 3 which is known as the terminal value(i.e. the unknown selling price after the third dividend as required in this case)
The terminal value is the present value of future dividends after 3 years which needs to be discounted 3 years backward in the process of computing share price
Share price=12
Year 1 dividend=1
Year 2 dividend=2
Year 3 dividend=3
Terminal value=unknown (assume it is X)
discount rate=32%
Each future dividend can be discounted using the present value formula of a single cash flow shown below:
PV=FV/(1+r)^N
FV=each future cash flow/dividends
r=discount rate=32%
N=the year of dividends, 1 for year 1, 2 for year 2
12=1/(1+32%)^1+2/(1+32%)^2+3/(1+32%)^3+X/(1+32%)^3
12=3.20978378829618+X/(1+32%)^3
12-3.20978378829618=X/(1+32%)^3
(12-3.20978378829618)*(1+32%)^3=X
X=(12-3.20978378829618)*(1+32%)^3
X=GH¢ 20.22
Find out more on terminal value on:brainly.com/question/25818989
#SPJ1
Given:
Inventory: $820
Fixed Assets: $3,200
Accounts receivable: $1,210
Accounts payable: $$890
Cash: $360
The amount of net working capital is
Cash and cash equivalents ($360)
+ Receivables ($1,210)
+ Inventory ($820)
+ Marketable investments ($3,200)
- Accounts payable ($890)
= $4,700
Answer: $4,700
Answer:
If we assume that in year 2018 , Bloomfield had same amount of percentage of ownership in Clor as they had in 2017 then in 2018 the amount of percentage that Bloomfield will held in Clor would be 28.45%.
Explanation:
Here it is given that we are to assume that Bloomfield accounts for its investment in Clor under the equity method and given investment in 2017 was $150,150 and investment in 2018 is $165,800.
So for calculating the amount of percentage we can assume that the percentage is X, and here we will add amount in 2017 with X% of ( net income - dividend declared ) to get the total amount in 2018.
$150,150 + X% ( $75,900 - $20,900 ) = $165,800
$150,150 + X% ( $55,000 ) = $165,800
X% (55,000) = $165,800 - $150,150
X% = 15,650 / 55,000
X% = .28454 ( MULTIPLYING BY 100 )
X% = 28.45
Answer:
Class B fund
Explanation:
Class B mutual funds do not charge a front-end sales fee, but they do impose a higher 12b-1 fee. In the short term, the purchase of Class B shares involves paying higher fees than Class A shares. However, in the long term, the investment might be lower on Class B than paying an upfront sales load for Class A.
contraction is to decline the answer is B