Answer:
closest to: B) $7777
Explanation:
NPV ( net presetn value) cashflow - investment
<u>cost savings present value (ordinary annuity):</u>
 
  
C   $8,500
time         5 years
rate  0.12
 
  
PV	$30,640.5977  
salvage value present value:
  
  
 Salvage  $2,000  
 time   5
 rate  0.12
  
  
 PV   1,134.85  
NPV: 30,640.60 + 1,134.85  - 24,000 = 7,775.45
 
        
             
        
        
        
Answer:
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Explanation:
 
        
                    
             
        
        
        
Importing
What is Importing?
An import is an item or service that is purchased outside of its nation of origin. International trade is made up of imports and exports. A country has a negative trade balance, or a trade deficit, if the value of its imports exceeds the value of its exports. Since 1975, the US has had a trade imbalance. The U.S. Census Bureau estimates that in 2019, the deficit was $576.86 billion.
To learn more about Importing
brainly.com/question/24473707
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Answer:
The price of the stock today is $15.63
Explanation:
The three stage Dividend Discount model will be used to calculate the price of this stock as the dividends are growing at three different growth rates. These dividends will be discounted back to calculate the price of the stock today.
The price per share today under this model will be:
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + [Dn * (1+gC) / (r - gC)] / (1+r)^n
Where,
- D1 is the dividend expected for the next period of Year 1.
- gC is the constant growth rate or third stage growth rate that will last forever.
P0 = 1.25 / (1+0.2)  +  1.25 * (1+0.4) / (1+0.2)^2  +  1.25 * (1+0.4) * (1+0.2) / (1+0.2)^3  +  1.25 * (1+0.4) * (1+0.2)^2  /  (1+0.2)^4  +  
[1.25 * (1+0.4) * (1+0.2)^2 * (1+0.08)  /  (0.2 - 0.08)]  /  (1+0.2)^4
The P0 = $15.625 rounded off to $15.63
 
        
             
        
        
        
Answer:
Option (D) is correct.
Explanation:
We have to use MM proposition that cost of equity will change itself in such a manner so that it can take care of its debt.
Cost of equity:
= WACC of all equity firm + (WACC of all equity - Cost of debt ) × (Debt -to-equity ratio)
At the beginning, when there was no debt,
WACC = cost of equity = 10%
Levered cost of equity:
= 10% + ( 10% - 6%) × 0.2
= 10.8%
Therefore, Taggart's levered cost of equity would be closest to 11%.