Answer:
Explanation:
Price is sum of:
1. Present value of expected dividend payments during 1-4 years;
2. Present value of the expected market price at the end of the fourth year based on growth at 5%.
Present value of expected dividend payments during 1-4 years:
PV1 = 3*(1+0.30)*0.8929 = 3.90*0.8929 = $3.482
*0.8929 = 1/1.12
PV2 = 3.90*1.30*0.7972 = 5.07*0.7972 = $4.042
PV3 = 5.07*1.30*0.7118 = 6.591*0.7118 = $4.691
PV4 = 6.591*1.30*0.6355 = 8.5683*0.6355 = $5.445
Total = $17.661
Present value of the expected market price at the end of the fourth year:
Market price of the share at the end = 5th year dividend/(Required rate of return - growth rate)
5th year dividend = $8.5683*(1+growth rate) = $8.5683*(1+0.05) = $9
Market price of the share at the end = $9/(0.12-0.05) = $128.57
Present value of $128.57 is 128.57*0.6355(present value interest factor for year 4) = $81.7
So the price of share is $17.661+$81.7 = $99.37
Answer:
The answer is stated below:
Explanation:
A. Received or collected $10,000 in exchange of the common stock:
This transaction will have an impact on the Accounting Equation of the Accounts, which is :
Assets = Liabilities + Equity
As the cash is received, there will be an increase in the assets and under the cash account of the current assets. Though the cash is against the common stock, which increases the common stock account upon the side of the equity.
Therefore, it will be:
Increase in assets (Cash) : Increase in equity (Common Stock)
B. Bought the equipment on account worth $5,000.
This transaction will have an impact on the Accounting Equation as:
As the equipment is purchased will in turn lead to increase in the assets side, under the equipment account and it is purchased on account, which means on credit, that leads to increase in the liability under the Accounts Payable account.
Therefore, it will be:
Increase in assets (Equipment) : Increase in Liability (Accounts Payable)
Answer:
d. Scientific management.
Explanation:
The management theory used by Henry in this case is scientific management, which can be understood as an administrative model created by Taylor.
The main objective of scientific management is to make work more efficient using less resources and efforts, that is, making work more flexible by rationalizing work and implementing scientific techniques and training employees so that there is efficiency and effectiveness in organizational processes, with the lowest cost, time and continuous improvement.
<span>It's like a type of a</span><span> account in the current liabilities section of a </span><span>company's um I think balance sheet.</span>
Answer:
is this a question?
if its true or false its false
