Answer:
$66.9725
Explanation:
Data provided in the question:
Dividend:
D1 = $1.20
D2 = $1.40
D3 = $1.55
Expected future price, P3 = $82
Required return = 8.9 percent = 0.089
Now,
Stock price today = Present value of dividends and the future value
Stock price today = 
or
Stock price today = 1.1019 + 1.1805 + 1.2001 + 63.49
or
Stock price today = $66.9725
Answer:
The correct answer is $1,836,742.42.
Explanation:
According to the scenario, the given data are as follows:
EBIT = $373,000
Cost of equity = 13.2%
Tax rate = 35%
So, we can calculate the unlevered value of the firm by using following formula:
Unlevered value of the firm = EBIT × (1 - TAX RATE) ÷ COST OF EQUITY
By putting the value, we get
Unlevered value of the firm = $373,000 × ( 1 - 35%) ÷ 13.2%
= $373,000 × 0.65 ÷ 0.132
= $242,450 ÷ 0.132
= $1,836,742.42
Answer: B. The firm would install the filter at a cost of $ 300,000.
Explanation:
If the community owns the property rights, they would be able to demand that the firm pay the external cost of $500,000 per year.
If on the other hand the company installed a filter, it would cost them $300,000 but then they would not have to pay the community the $500,000.
The lower cost option would be to install the filter for $300,000 which is what the firm would do.
Answer:
The balance in the investment account on December 31 will be $325,000
Explanation:
The equity method is computed by applying an equation which is shown below:
= Opening balance of common stock + rate of common stock × (Net income - dividend paid)
= $300,000 + 25% × ($160,000 - $60,000)
= $300,000 + 25% × $100,000
= $300,000 + $25,000
= $325,000
Since, only 25% of common stock is acquired so, only 25% is to be considered in the computation part. And all other balances are also considered together.
Hence, the balance in the investment account on December 31 will be $325,000
Answer:
Market development
Explanation:
Market development can be defined as a growth strategy in which an organisation decides to sell off their existing goods to a new set of potential buyers. Market development helps to improve the capability of the market by moving into different unexplored part of the market.
The first step of market development is the creation of a good promotion approach. Organizations have to look for different advertising strategies which will be used to introduce their products into the new market so as to achieve rapid sales of the product.
H&R is considering a market development growth strategy so as to tap into new market segments.
