Answer:
Price of the stock today = $82.35
Explanation:
Note: See the attached file for the calculation of present values for year 1 to 8 dividends.
From the attached excel file, we have:
Previous year dividend in year 1 = Dividend just paid = $2.50
Total of dividends from year 1 to year 8 = $23.46345631521910
Year 8 dividend = 8.77863318950395
Therefore, we have:
Year 9 dividend = Year 8 dividend * (100% + Dividend growth rate in year 9) = 8.77863318950395 * (100% + 7%) = 9.39313751276923
Price at year 8 = Year 9 dividend / (Rate of return - Perpetual dividend growth rate) = 9.39313751276923 / (13% - 7%) = $156.552291879487
PV of price at year 8 = Price at year 8 / (100% + Required return)^Number of years = $156.552291879487 / (100% + 13%)^8 = $58.88868846568915
Price of the stock today = Total of dividends from year 1 to year 8 + PV of price at year 8 = $23.46345631521910 + $58.88868846568915 = $82.35
Answer:
First - in - First - Out (FIFO) method
Explanation:
The First - in - First - Out (FIFO) method, assumes that the first goods received by the business will be the first ones to be delivered to the final customer.
It assumes that goods have been used in the order in which they are purchased.
Answer:
$760,000
Explanation:
Costs of goods sold are the direct costs incurred in manufacturing products that sold to consumers in a period. It is obtained by using the formula below.
COGS = Beginning stock + purchases/ manufactured goods - ending stock stock.
For Edmiston Company
Beginning stock: $50,000
Endings stock: $40,000
Cost of goods manufactured: $750,000;
COGS = 50,000 + 750,000 - 40,000
COGS = $760,000
I’m not sure what this question is talking about..... I will get back to you later on this let me rethink it
Answer:
EBIT
Explanation:
TIE = EBIT/ Interest expense
So, TIE = EBIT/ Interest expense = 3.5 ⇒ EBIT = 3.5 * Interest expense
