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kkurt [141]
3 years ago
11

You are considering acquiring a common share of Sahali Shopping Center Corporation that you would like to hold for 1 year. You e

xpect to receive both $1.85 in dividends and $45 from the sale of the share at the end of the year. The maximum price you would pay for a share today is __________ if you wanted to earn a 10% return.
Business
1 answer:
kodGreya [7K]3 years ago
3 0

Answer:

$42.60

Explanation:

Current value = Future dividends and value*Present value of discounting factor(rate%,time period)

Current value =  $1.85 / (1+10%) + $45 / (1+10%)

Current value =  $1.85/1.1 + 45/1.1

Current value = $ 1.68181 + $40.91

Current value = $42.5918

Current value = $42.60

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Cameron Industries is purchasing a new chemical vapor depositor in order to make silicon chips. It will cost $7,000,000 to buy t
AVprozaik [17]

Answer:

A) -$10,020,000

Explanation:

Year 0 cash flow = -(Cost of Machine + Installation Cost + Clean Room Cost)

Year 0 cash flow = -($7,000,000 + $20,000 + $3,000,000)

Year 0 cash flow = -$10,200,000

So, the incremental free cash flows associated with the new machine in year 0 is ($10,200,000).

4 0
3 years ago
Midyear on july 31st, the baldwin corporation's balance sheet reported: total assets of $166.859 million total common stock of $
Nata [24]
In the balance sheet, in order to account for the money or amounts that go to an fro in the sheet, we use the equation,
              NW = As - Li
where NW is the networth, As is the asset, and Li is liabilities.

From the given above, the total asset (As) is given to be $166.859M. The net worth is equal to the sum of the common stock, cash, and retained earnings.
             Networth = ($5.080 M) + ($8.040 M) + ($36.411 M)
            Networth = $49.531

The the equation above, we may derive the equation for liability by transposing,
                Li = Asset - Networth
                Li = ($166.859 M) - ($49.531 M)
                Li = $117.328

Hence, the total liability is equal to $117.328. 
4 0
3 years ago
Antiglobalization activists:
QveST [7]

Answer: Option C

Explanation: The anti global activist are individuals who are concerned about the environmental effects on globalization. The anti globalist carries the perception that social and economic equality could be achieved without the negative effects of capitalism.

These activist complain that, if the business organisation are made free to trade then the poor countries like in Africa, will sacrifice their environmental duties for the investment from rich countries.

Hence from the above we can conclude that the correct option is c.

8 0
3 years ago
A municipal bond has a coupon rate of 5.11 percent and a YTM of 5.41 percent. If an investor has a marginal tax rate of 35 perce
Anettt [7]

Answer:pretax yield = 5.11 x 1.35 = 6.8985 = 6.90%

Explanation:

a pretax yield is a yield that a taxable bond must have in order for the yield to equal to a yield of a bond that is tax free

pretax yield = 5.11 x 1.35 = 6.8985 = 6.90%

3 0
3 years ago
Presented below are three independent situations:
Blababa [14]

Answer:

Explanation:

a)

June 30, 2018

Dr Bonds Payable $250,000

Dr Loss on Redemption of bonds $25,500

    Cr Discount on Bonds Payable $20,500

    Cr Cash $255,000

Supporting calculations:

Discount on Bonds Payable = 250,000 -  229,500 = $20,500

Cash = $250,000*102/100 = $255,000

Loss on redemption of bonds = $255,000+$20,500-$250,000 = $25,500

b)

June 30, 2018

Dr Bonds Payable  $200,000  

Dr Discount on Bonds Payable $3,500

    Cr Gain on Bond Redemption  $9,500

    Cr  Cash                                             $194,000

Supporting calculations:

Discount on Bonds Payable = 200000-196500 = $3500

Cash = 200000*97% = $194,000

Gain on Bond Redemption = $200,000 + $3,500 - $194,000 = $9,500

c)

31 Dec

Dr Bonds Payable $30,000  

    Cr Common Stock  $6000

    Cr Paid in capital in excess of par-Common Stock $24000

Common Stock = 30000/1000*$5*40 shares = 6,000

4 0
3 years ago
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