Minuet Industries just paid a dividend of D0 = $1.00. Analysts expect the company's dividend to grow by 20% this year, by 10% in
Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 8.00%. What is the best estimate of the stock’s current market value? $40.59 $39.65 $38.75 $41.85 $42.99
<em>According to the dividend valuation model , the current price of a stock is the present value of the expected future dividends discounted at the required rate of return</em>
<em>This principle can be applied as follows:</em>
Year 1 1.00× 1.20 × 1.08^(-1) = $1.11
Year 2 1.00× 1.20 × 1.1 ×1.08^(-2) = $1.131
<em>PV of year of year 3 onward</em>
<em>This will e done in two steps:</em>
Year 3 on ward
<em>Step 1 </em>
<em>Calculate the PV of dividend in year 2 terms</em>
In business, threats refer to anything that will become a hindrance for a company to achieve its goals. Several things that considered a threat on most businesses are Competitors, Poor economic conditions, unstable Governmental system, Radical population, etc.</span>
Th answer is: Jim is liable for Ronald´s injuries and Sarah and Alex are also liable but only to the extent of their ownership in Super Company, LLC.
Explanation:
Ronald can sue Jim for committing a negligent act (for hitting and injuring him). But he can also sue Super Company, LLC, because when the accident happened Jim was acting within the scope of ordinary business. That means that Sarah and Alex will also be liable but at a limited extent. Sarah will only be liable up to $5,000 and Alex will be liable up to $15,000 (the amount of money they contributed to create Super Company, LLC)
Taylor should recognize revenue in 2021 in the amount of $0.00
Explanation:
IFRS 15 Requires entity to recognise revenue WHEN the transfer of control of goods and services is made to the customer.
It is important to note that Control is transferred on an as-needed basis to King Associates
Tylor has not yet transfered any handyman services during 2021. Therefore no revenue is recognised as transfer of control of goods and services is made to the customer does not exist.
Only when handyman services are provided then the revenue is recognised in the year the servises are provided.
