$51.22 is intrinsic value of this stock.
<h3>Intrinsic value of this stock</h3>
For computing the intrinsic value, first we have to determine the current year dividend and expected rate of return which is shown below:
The computation of the next year dividend is shown below:
= $3 + $3 × 3.8%
= $3 + 0.114
= $3.114
And, the expected rate of return would be
= Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 2.4% + 0.88 × (10.9% - 2.4%)
= 2.4% + 0.88 × 8.5%
= 2.4% + 7.48%
= 9.88%
Now the intrinsic value would be
= Next year dividend ÷ (Required rate of return - growth rate)
= $3.114 ÷ (9.88% - 3.8%)
= $3.114 ÷ 6.08%
= $51.22
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Answer:
$50,400
Explanation:
Amount
Salary $250,000
Materials $90,000
Utilities $20,000
Depreciation <u>$18,000</u>
Research and experimental costs <u>$378,000</u>
Current deduction = $378,000/60 * 8(May-December)
Current deduction = $50,400
The net operating income is $5,000.
<h3>What is the net operating income?</h3>
The net operating income is total revenue less direct and indirect expenses.
The net operating income = total revenue - variable expenses - fixed costs.
Total revenue is price per unit multiplied by the total quantity sold. The variable expense cost per unit multiplied by the total quantity sold.
(10,000 x $10) - (10,000 x $6) - $35,000
100,000 - 60,0000 - 35,000 = $5,000
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Answer:
D=$1.52914
The most recent dividend per share paid on the stock is $1.52914.
Explanation:
Formula we are going to use is:
Where:
P is the current selling price
D is he recent dividend per share
g is the growth rate
r is the rate of return
Above formula will become:
D=$1.52914
The most recent dividend per share paid on the stock is $1.52914.
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