Being antisocialble with people can lead you in serious danger

Future Motors is expected to pay a $3.30 a share annual dividend next year. Dividends are expected to increase by 3.75 percent a

Alborosie

Answer:

One share of this stock worth to you today is $18.08

Explanation:

According to the question, we have the following data:

D1 = $3.30

g = 0.0375

Ke = 0.22

one share of this stock worth to you today = P0

Hence to calculate the P0 we have to use the following formula:

Ke = D1/P0 + g

0.22 = 3.3/P0 + 0.0375

P0 = $18.08

One share of this stock worth to you today is $18.08

3 0

3 years ago

Using the FIFO method, the cost of inventory at the end is $15,500, and the market price is $14,500. Using the lower-of-cost-or-

Sindrei [870]

Answer:

Inventory Cost = $14,500

Explanation:

Using the lower of cost or market method implies firstly valuing the inventory at the purchased cost (historical cost). But as the value of a good can change and if the price at which the inventory can be sold falls below its net realizable value the loss (and new value) must be recorded. It is a method for adjusting asset values in subsequent reporting periods.

5 0

3 years ago

Which would be the best economic measure to compare standards of living among nations over time?

frosja888 [35]

<span>Changes in real income per capita</span>

3 0

3 years ago

Lester's just signed a contract that will provide the firm with annual cash inflows of $28,000, $35,000, and $42,000 over the ne

Free_Kalibri [48]

Answer:

$64,474.20

Explanation:

As for the information provided,

discount rate = 7.25%

First payment will be made at the end of year 1

Discounting factor = $\frac{1}{(1+0.0725)^1} = 0.9324$

Thus, current value of payment = $28,000 \times 0.9324$ = $26,107.20

Discounting factor for receipts =

Year 1 = $\frac{1}{(1+0.0725)^1} = 0.9324$ = $28,000 $\times$ 0.9324 = 26,107.20

Year 2 = $\frac{1}{(1+0.0725)^2} = 0.8694 = 35,000 \times 0.8694 = 30,429$

Year 3 = $\frac{1}{(1+ 0.0725)^3} = 0.8106 = 42,000 \times 0.8106 = 34,045.20$

Therefore, value of contract today = - $26,107.20 + $26,107.20 + $30,429.0 + $34,045.20 = $64,474.20

5 0

3 years ago

You see a used sporty car that you would like to own. It costs $9,000 and you would pay 7.2% interest, compounded monthly and fi

bogdanovich [222]

Answer:

$24,705.8

Explanation:

To find the answer, we will use the present value of an annuity formula:

PV = A (1 - (1 + I)^-n / i

Where:

PV = Present value of the investment (in thise case, the cost of the car)
A = Value of the annuity (the monthly payments)
i = Interest Rate
n = number of compounding periods

The monthly payments are an annuity: they are periodic, fall under the same interest rate, and have the same value, therefore, if we find the value of the annuity, we will find the value of the first monthly payment at the same time (both things are the same):

Plugging the amounts into the formula we obtain:

9,000 = A ( 1 - (1 + 0.072)^-36 / 0.072

9,000 = A (12.75)

9,000 / 12.75 = A

705.88 = A

Now, to find the full value of the loan, we multiply the annuity value for 36, because that value will be paid 36 times until the loan is completed:

Full value of the loan = 705.88 x 36

= 25,411.68

Finally, to find the loan balance after the first payment, we take the full value of the loan, and substract the value of the annuity from it:

Loan balance after first payment = 25,411.68 - 705.88

= 24,705.8

3 0

3 years ago