Answer:
r = 0.103555 or 10.3555% rounded off to 10.36%
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D1 / (r - g)
Where,
- D1 is dividend expected for the next period /year
- r is the required rate of return or cost of equity
Plugging in the values for D0, P0 and g in the formula, we can calculate r to be,
53.1 = 2.95 / (r - 0.048)
53.1 * (r - 0.048) = 2.95
53.1r - 2.5488 = 2.95
53.1r = 2.95+ 2.5488
r = 5.4988 / 53.1
r = 0.103555 or 10.3555% rounded off to 10.36%
Do you have answer options?
Answer:
1.a. $2,460,000
2.c. $350,000
Explanation:
Calculation of after-tax salvage value
Cost of machine$ 5,000,000
Depreciation (20%+32%)=52% $ 2,600,000
WDV $ 2,400,000
($5,000,000-$2,600,000)
Sale price $ 2,500,000
Profit/(Loss) $ 100,000
Tax-40% $ 40,000
Sale price after-tax $ 2,460,000
Therefore the After-Tax Salvage Value of the production equipment at the end of the 2nd year equals$2,460,000
2.
The net working capital invested in the business, in the beginning will gets recovered at the end of the project.
Year 2, initial working capital of $ 350,000 will therefore be recovered and change in net working capital will be a positive 350,000
Therefore the change in Net Working Capital at the end of the 2nd year equals $350,000
Answer: you will only receive a record of your payment if you pay bills online
Explanation:
Answer: $8,009.3
Explanation:
Given that,
Deposits(P) = $100 today (Annuity amount)
Additional deposits = $100 end of each quarter for the next 13 years
nominal annual rate = 6% compounded annually
= 0.015
No. of deposits (n) = 53
Payments are made at end of quarter. So future Value of annuity formula will become applicable.
Future value of annuity due = 
= 
= 100 × 80.09
= $8,009.3
Therefore, she will have $8009.38 for her trip.
