Answer:
1. Year 1 expected value = $32.24
2. Required rate of return = 7.35%
Explanation:
1. For computing the stock price which is expected 1 year from now is shown below:
= Current Price × (1+rate)^number of years
= $31 × (1+0.04)^1
= $31 × 1.04
= $32.24
Hence, the expected 1 year value of stock price is $32.24
2. The required rate of return is computed by using an formula which is shown below:
= (Current Year dividend ÷ Current stock price)+ growth rate
where,
current year dividend is = D1
And, D1 = DO × (1+g)
where,
DO = previous dividend share
g = growth rate
So, $1 × (1+0.04)
= $1 × 1.04
= $1.04
Now apply these values to the above formula
So, required rate of return is equals to
= ($1.04 ÷ $31) + 0.04
= 7.35%
Hence, the required rate of return is 7.35%
Answer:
Chronological
Explanation:
For accounting day to day business transactions, there is a proper sequence of accounting cycle i.e.
1. Transactions
2. Journal entries
3. ledger posting
4. Trial balance
5. Worksheet
6. Journal entries i.e. adjusted
7. Financial statements
8. Books closing
So it would be chronological
Answer:
<em>.C. cash cow businesses with an excellent financial fit</em>
Explanation:
With an unrelated diversification strategy, the types of companies that make particularly attractive acquisition targets are:A. struggling companies with good turnaround potential, undervalued companies that can be acquired at a bargain price, and companies that have bright growth prospects but are short on investment capital.B. companies offering the biggest potential to reduce labor costs.C. cash cow businesses with an excellent financial fit.D. companies that are market leaders in their respective industries.E. companies that are employing the same basic type of competitive strategy as the parent corporation’s existing businesses.
Big businesses are usually the one that acquire distressed companies /. They are called the cash cow because they are basically business, investment, or product that provides a steady income or profit. they possess a large volume of the market share with little investment contribution to it.
Unit pricing can be used in various types of contracts to require the buyer to pay the supplier a predetermined amount per unit of service.
