Answer:
$370,440
Explanation:
The computation of the working capital is as follows:
As we know that
Working capital = Current asset - current liabilities
where,
Current Assets is
= Total current assets - purchase of an equipment - salaries - borrowed amount
= $658,000 - $2,000 - $560 + $80,000
= $735,440
And, Current Liabilities is $365,000
So, the working capital is
= $735,440 - $365,000
= $370,440
Answer:
C
Explanation:
On the US exchanges, other world currencies are available for option contracts. The US currency is the base currency used for these options. So, the US dollar cannot be listed again for an options contracts, There cannot be an options contract of the US dollar against the US dollar
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Answer:
Current Price of the Share Stock is $ 37.86 (D)
Explanation:
Using dividend valuation method with a constant growth rate assumption, share price is calculated as : Po =D1/(Ke-g).
Where; Po ⇒Market Value excluding any dividend currently payable
D1= Do(1+g)⇒Expected dividend in one year's time
Ke =Required rate of return by shareholders
g= Dividend growth rate
<u>Calculation</u>
D1 = 5(1+0.06)= $5.3
Hence, Po= 5.3/(0.20-0.06)
Po=$37.86
The share price is expected to reflect the future expected stream of income i.e dividends and capital gains ,discounted at an appropriate cost of capital.
Some of the assumptions of dividend valuation method include but not limited to the following:
- it assumed that investors act rationality and in the same way ;
-the dividend either show growth or no growth;
-the discount rate used exceeds the dividend growth rate.