Answer:
$21.37
Explanation:
g = -5.4%
D0 = $3.93
D1 = D0 (1+g)
D1 = 3.93*(1-0.054)
D1 = 3.93*0.946
D1 = 3.71778
Investors require a return (ke) of 12%
P0 = D1/(ke - g)
P0 = 3.71778 / (12% - (-5.4%)
P0 = 3.71778 / (12% + 5.4%)
P0 = 3.71778 / 17.4%
P0 = 3.71778 / 0.174
P0 = 21.3665517
P0 = $21.37
So, the expected price of the stock next year is $21.37.
<span>Athletes who train at high altitudes increase their red blood cell count and thus increase their oxygen supply during exercise. Increased oxygen supply results in more amount of oxygen laden blood supply to the muscles of the body.</span>
Answer: $918,000
Explanation: Since Shelton Co is considering building a warehouse on the site because the rental lease is expiring then in evaluating the new project all the relevant cash flows must be considered in the protect evaluation. Market value of the land used for constructing the building is an opportunity cash flow and so must be considered. The Relevant cost of opportunity for land will be its fair value.
Therefore ,the initial cost cost of the warehouse project for the use of this land is $918, 000.
Answer:
Net income of the company accounted for $400,000
Explanation:
Net income is the income or the amount of residual income from the earnings after deducting all the expense or cost from the sales.
The net income or loss of the company accounted for is computed as:
Net Income or Loss = Net Income - Research and Development cost
where
Net Income amounts to $3,400,000
Research and Development cost amounts to $3,000,000
So, putting the values above:
Net Income or loss = $3,400,000 - $3,000,000
Net Income = $400,000
Answer:
r = 5%
Explanation:
Construction cost 800.000
# of barrels produced 10.000
Price per barrel $4
let the interest rate = r
Equate the net present value = 0
800000 = 10000 x 4/(1 + r) + 40000/(1 + r)2 + .......
800000 = 10000 x 4/r
r = 5%
