The Government regulates the sale and research of prescription drugs in order to promote safety and fair practices in the healthcare industry.
Answer:
D1 = $4.085
D2 = $4.46
D3 = $4.86
D4 = $5.01
D5 = $5.16
Explanation:
As per the data given in the question,
DO = $3.75
Dividend expected to grow = 9%
Dividend grow later = 4%
D1 = DO(1+ Dividend1) = $3.75(1+9%)
=$3.75(1.09)
=$4.085
D2 = DO(1+ Dividend1 )( 1 + Dividend2)
= $3.75(1+9%)(1+9%)
= $4.46
D3 = DO(1+Dividend1)(1+Dividend2)(1+Dividend3)
= $3.75(1+9%)(1+9%)(1+9%)
= $4.86
D4 = DO(1+Dividend1)(1+Dividend2)(1+Dividend3)(1+Dividend later)
= $3.75(1+9%)(1+9%)(1+9%)(1+3%)
= $5.01
D5 = DO(1+Dividend1)(1+Dividend2)(1+Dividend3)(1+Dividend later)(1+Dividend later)
= $3.75(1+9%)(1+9%)(1+9%)(1+3%)(1+3%)
= $5.16
Answer:
B
Explanation:
we are to calculate the total land cost recorded in this question;
To get the cost recorded we do the following;
Cost of land recorded = cost of land + commissions + cost of removing existing building - sale of salvaged materials on land
cost of land recorded= 80,000+ 4,800 + 20,000 - 4,000 = $100,800
The interest rate offered would decrease
Answer:
II, III, and IV only
Explanation:
The first statement is wrong. IRR is the rate that causes the net present value of a projects cash-flows to exactly equal zero, and therefore a project with a required rate of return higher than the IRR would mean that the cash-flows have to be discounted by a higher rate, which would yield a negative net present value. Such a project would reduce shareholder wealth and should be rejected. The other 3 statements are correct.
