Answer:$27.78
Explanation:
Expected value of debt after one year = (40* .60)+(15*.40)
= 24 + 6
=$ 30
Current value of debt = Value at 1year / (1+r)^n
= 30/ (1+.08)^1
= 30 / 1.08
=$ 27.78
Answer:
The correct answer is (d)
Explanation:
Otto state like most states in the US demands articles of organisation from the firm and organisations to form a limited liability company. In most of the states, it is compulsory to how an article of organisations which legally binds a company to follow all the rules and regulations. Article of organisation is also known as an article of formation.
Answer:
$32.72
Explanation:
In this question, we are asked to calculate the price an investor would be expected to pay per share in the next five years.
We proceed as follows to calculate this.
Dividend = $0.70
Share price = $18.90
Hence = Dividend / Share price
= 0.70 / 18.90
= 0.037037
Cost of Equity = 7.9%
Expected growth = 0.037037 + 0.079
= 0.116037
Add one to it = 1 + 0.116037
= 1.116037
Share price after 5 year = $18.90 * (1.116037)^5 = $32.7231
