Answer:
b. $12.67
Explanation:
The value of the company is the present value of its future dividends payments discounted at the company's cost of equity.
Year 1 dividend=current year dividend*(1+12%)
Year 1 dividend=$60m*(1+12%)=$67.20m
Year 2 dividend=$67.20m*(1+12%)=$75.26m
Year 3 dividend=$75.26m*(1+12%)=$ 84.30m
Year 4 dividend=$ 84.30m*(1+12%)=$ 94.41m
Year 5 dividend=$ 94.41m*(1+12%)=$105.74m
the terminal value of dividends=Year 5 dividend*(1+terminal growth rate)/(cost of equity)
the terminal value of dividends=$105.74m*(1+8%)/(16%-8%)=$1427.49m
value of the company=$67.20/(1+16%)^1+$75.26/(1+16%)^2+$ 84.30/(1+12%)^3+$ 94.41/(1+16%)^4+$105.74/(1+16%)^5+$1427.49/(1+16%)^5
value of the company=$956.00 m
value of one share=$956.00 m/75m=$12.75(the correct option is $12.67 the difference is due to rounding error)
Answer:
B
Explanation:
because they make sure you are responsible and careful with money
Answer:
The amount of total stockholders' equity that would be reported on the Balance Sheet at the end of the year is $105,300
Explanation:
In order to calculate the amount of total stockholders' equity that would be reported on the Balance Sheet at the end of the year we would have to use the following formula:
Total assets is equal to=Cash+AR+Supplies
Therefore, total stockholders' equity=($71,100+$29,100+$5,100)
total stockholders' equity=$105,300
The amount of total stockholders' equity that would be reported on the Balance Sheet at the end of the year is $105,300
Answer:
girl no brainly is for school not dating
Explanation:
.
Answer: The formula for simple interest is I=PxRxT. The calculations for each is below.
Explanation: The formula for simple interest is Interest = Principal x Rate x Time. In order solve for each of these variables you need to plug each into the formula.
40,000 x .07 = $2,800
50,000 x .07 = $3,500
60,000 x .07 = $4,200
70,000 x .07 = $4,900
80,000 x .07 = $5,600
90,000 x .07 = $6,300
40,000 x .09 = $3,600
50,000 x .09 = $4,500
60,000 x .09 = $5,400
70,000 x .09 = $6,300
80,000 x 09 = $7,200
90,000 x .09 = $8,100