Answer:
Re = 8.79%
Explanation:
annual growth rates:
($1.38 - $1.25) / $1.25 = 0.104
($1.49 - $1.38) / $1.38 = 0.078
($1.60 - $1.49) / $1.49 = 0.074
($1.69 - $1.60) / $1.60 = 0.056
geometric growth rate = ⁴√(1.104 x 1.078 x 1.074 x 1.056) - 1 = ⁴√1.34976 - 1 = 1.0779 - 1 = 0.0779 = 7.79%
P₀ = Div₁ / (Re - g)
$199 = $2 / (Re - 0.0779)
Re - 0.0779 = $2 / $199 = 0.01
Re = 0.01 + 0.0779 = 0.0879 = 8.79%
The current value of the payment which is $1000 will be:
A=P(1+r/100)^-n
P=1000
r=5 %
n=1
A=1000(1+5/100)^-1
A=1000/1.05
A=$952.38
The first payments of $1000 is worth $952.38 today. The value of the second $1000 is worth:
A=1000(1+0.05)^-2=907.02
today
Answer:
See the attached excel file for the horizontal statements model.
Explanation:
In the attached excel file, we have:
FA = Financing activity
For event 1:
Cash = $20,000
Common stock = Number of shares * Share price at par = 1,000 * $10 = $10,000
PIC in Excess = Paid in capital in excess = Cash - Common stock = $20,000 - $10,000 = $10,000
For event 2:
Cash = Number of shares issued * Price per share = 2,000 * $2.50 = $50,000
Common stock = Number of shares * Share price at par = 2,000 * $10 = $20,000
PIC in Excess = Cash - Common stock = $50,000 - $20,000 = $30,000
Answer:
The answer is true
Explanation:
The video streaming industry is vastly different from the DVD-by-mail rental industry. Curiously enough, one company has navigated both industries succesfully: Netflix was born as a DVD-by-mail service, and now is one of the most well-known streaming services.
