Answer:
$59.36
Explanation:
Given that
Dividend per share = $1.30
Growth rate for next 3 years is 15%
Now
Dividend for year 1 is
= Dividend per share × (1 + growth rate)
= $1.30 × (1 + 0.15)
= $1.495
For dividend for year 2 is
= Dividend for year 1 × (1 + growth rate)
= $1.495 × (1 + 0.15)
= $1.719
For dividend for year 3 is
= Dividend for year 2 × (1 + growth rate)
= $1.719 × ( 1 + 0.15)
= $1.977
And,
Subsequent Growth rate = g2 = 5%
Now
Dividend for year 4 is
= Dividend for year 2 × (1 + g2)
= $1.977 × (1 + 0.05)
= $2.076
Now
As per Gordon's Growth Rate Model
Price at year 3 is
= Dividend for year 4 ÷ (required rate of return - g2)
= $2.076 ÷ (0.08 - 0.05)
= $69.2
So, Value of the Stock is
= Dividend for year 1 ÷ (1 + required rate of return ) + Dividend for year 2 ÷ (1 + required rate of return)^2 + Dividend for year 3 ÷ (1 + required rate of return)^3 + Price at year 3 ÷ (1 + required rate of return)^3
= $1.495 ÷ (1+0.08) + $1.719 ÷ (1+0.08)^2 + $1.977 ÷ (1+0.08)^3 + $69.2 (1 + 0.08)^3
= $59.36
Answer:
a. The company will recognize an unrealized holding loss.
Explanation:
An unrealised loss is defined as a decline in an asset theta is held by a business. The asset can be held until it's value appreciates to cancel out the unrealised loss. If such an asset is sold, it will now be a realised loss.
The unrealized loss of (800,000-750,000= $50,000) will be recorded in the accumulated other comprehensive income account under the equity section of the balance sheet.
Unrealised loss is also called paper loss because the loss is only recorded on paper and is not yet realised.
Answer: uh...
Explanation:
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Technician B not all trans have drain plugs
If a company complies with government regulations, it incurs implementation costs. When a company decides to agree and follow new regulations, it will have to implement them into their organization. By implementing them, they are making changes within their organizations processes and therefor having costs associated with the changes.
