Answer:
The Market price for the stock will be 26.48 according to the gordon dividend grow model.
Explanation:
We will calculate the stock price, using the gordon model for the dividend grow model:
D1 = 2.78
return = 15%
grow = 4.5%
Stock market = 26,47619 = $26.48
Answer:
C. Stella, Capital will be debited for $4,000.
Explanation:
As for the provided information, we have,
Out of all the partner's Tiffany is retiring.
Tiffany's capital balance = $50,000
On his retirement he is paid $60,000
Since no goodwill is recorded, the excess amount paid over capital = $60,000 - $50,000 = $10,000, will be debited in remaining partner's ratio.
Ron's share in these $10,000 = $10,000 3/(3+2) = $6,000
Stella's share = $10,000 2/(2+3) = $4,000
Thus, Correct answer is debiting Ron's capital by $6,000 and Stella's capital by $4,000
Answer:
Payback = 5.25 years
Explanation:
If a project has equal annual cash-flows, the payback period can be easily calculated using the formula:
The question does not make specific reference to cash-flows from the project, but the reduction in operating costs every year resulting from the acquisition of this machine is treated as an increase in net cashflows before taxes for the company, and as such will be used as the cash-flows for capital investment analysis.
As such: