Answer:
31.12
Explanation:
Given that,
Growing at a constant rate = 6.5%
Firm’s last dividend, R = 3.36
Required rate of return = 18%
Expected dividend next year = 3.36 × (1 + 6.5%)
= 3.5784
Market value of stock:
= Expected dividend next year ÷ ( required return - growth rate)
= 3.5784 ÷ (0.18-0.065)
= 31.11652
= 31.12
Answer:
Common stock: $4,400,000
Additional paid-in capital: $20,000,000
Treasury stock: ($4,300,000)
Explanation:
Common stock = (number of shares issued – number of share repurchased) x par value = (2,500,000 – 100,000 – 200,000) * $2 = $4,400,000
Additional paid-in capital is the excess of par-common stock = number of shares issued * (purchased price – par)= 2,500,000 * ($10-$2) = $20,000,000
Treasury stock = number of share repurchased x (par value -repurchase price) = 100,000*($2-$15) + 200,000*($2-$17) = ($4,300,000)
The value of this liability today = $28,229,985.11
<u>Explanation:</u>
Given data: annual payments = $1650000, number of years given = 25 years, interest rate given = 3.47 percent
Now, we have to find out the liability that is owed today
<u>The following formula is used to calcute the liability aamount which is outstanding as on today</u>
Value of the laibility today = ( 1 + r) multiply PMT multiply ( 1 minus ( 1 by (1 plus r power n))) by r
Now, we have to put the values in the above given formula
1.0347 multiply 1650000 multiply ( 1 minus ( 1 by (1.0347 power 25))) by 0.0347
Thus, solving the above equation we get, = $28,229,985.11
Answer:
$5,857; $1,105
Explanation:
Cash flows from investing activities:
= Proceeds from sale of property and equipment + Sale of investments - Purchase of property, plant, and equipment
= $6,594 + $134 - $871
= $5,857
Therefore, the net cash provided by the investing activities is $5,857.
Cash flows from Financing activities:
= Borrowings under line of credit (bank) + Proceeds from issuance of stock - Payments to reduce long-term debt - Dividends paid
= $1,417 + $11 - $46 - $277
= $1,105
Therefore, the net cash provided by the investing activities is $1,105.