Stock markets is a stock exchange and a bond market is where dept securities are issues and traded
Answer:
Communication
Explanation:
Communication is the exchange and flow of information and ideas from one person to another; it involves a sender transmitting an idea, information, or feeling to a receiver
Answer:
$10,000
Explanation:
Based on the information given we were told that the government contribution to the pension plan was the amount of $10,000 for year 1 which simply means the amount of $10,000 will be the pension expenditure for the general fund for year 1.
Therefore the pension expenditure for the general fund for year 1 will be $10,000.
Answer:
a. If dividends are annual and expected to be constant, what is the intrinsic value (fair price) of ABC stock?
P₀ = $0.26 / 12% = $2.16667 = $2.17
b. What is ABC's dividend yield?
$0.26 / $2.17 = 12%
c. From now on, assume that the dividend of 0.26 was a quarterly dividend. What is the quarterly discount rate?
12% / 4 = 3%
d. What is the intrinsic value if dividends are constant and quarterly?
P₀ = $0.26 / 3% = $8.66667 = $8.67
e. We now think that dividends will grow by 0.3% from quarter to quarter. The firm just paid the quarterly dividend of 0.26. What is the intrinsic value of ABC stock?
P₀ = ($0.26 x 1.003) / (3% - 0.3%) = $9.6585 = $9.66
f. A different analyst thinks that ABC's dividends will grow by 5% for the next 4 quarters, and then grow by 0.3% thereafter. What is the intrinsic value?
Div₀ = $0.26
Div₁ = $0.273
Div₂ = $0.287
Div₃ = $0.301
Div₄ = $0.316
Div₅ = $0.317
terminal value in 4 quarters = $0.317 / (3% - 0.3%) = $11.74
P₀ = $0.273/1.03 + $0.287/1.03² + $0.301/1.03³ + $0.316/1.03⁴ + $11.74/1.03⁴ = $0.265 + $0.271 + $0.275 + $0.281 + $10.43 = $11.522
Answer:
1,732,960
Explanation:
The sales is $37,080,000
The net operating income is $3,108,960
The average operationg assets is $8,600,000
The required rate of return is 16%
The divisional residual income can be calculated as follows
= 3,108,960-(16/100×8,600,000)
= 3,108,960 - (0.16×8,600,000)
= 3,108,960-1,376,000
= 1,732,960
Hence the residual income is closest to $1,732,960
