Answer: $53.94
Explanation:
Current share price is the present value of the dividends for the next 3 years and the terminal value in year 3.
Terminal value = D₄ / ( required return - growth rate)
= (2.35 * 1.22³ * 1.05) / (12 % - 5%)
= $64
D₁ = 2.35 * 1.22 = $2.867
D₂ = 2.867 * 1.22 = $3.49774
D₃ = 3.49774 * 1.22 = $4.2672428
Share price = (2.867 / (1 + 12%)) + (3.49774 / 1.12²) + (4.2672428 / 1.12³) + (64/1.12³)
= $53.94
Answer:
Income elasticity = 2
Normal good
Explanation:
Below is the given values:
Percentage decrease in consumers income = 10%
Percentage decrease in quantity demanded = 20%
Use the below formula to find the income elasticity:
Income elasticity = % change in quantity demanded / % in income
Income elasticity = -20/-10
Income elasticity = 2
Since the elasticity is 2 that means good is normal good.
Answer:
4) recorded as a reduction of the cost of the land.
Explanation:
When you are calculating the cost of any land purchased, you must start with the purchase price and add all the expenditures necessary for getting the land ready, e.g. legal fees, taxes, real estate commissions, land grading, clearing the trees, etc., and subtract any revenue obtained, e.g. from the sale of salvaged materials or timber.
total cost of land = purchase price + (fees, commissions, grading, clearance expenses, taxes, etc.) - revenue (salvaged materials, scrap, timber, etc.)
Answer:
A. True
Explanation:
Bank loans are generally short term for meeting the working capital needs, that depends upon the operating cycle of a company.
Usually that keeps on rotating and extending, as the banks keep on earning interest and the funds are usually not needed, this results in the constant support for business.
Further this facility is only provided to the clients who are performing good and that the clients are viable.
If the balance sheets of the client depicts that they are not financially viable then the bank do not extend the time limits and tries to recover the funds as soon as possible.
Answer: Noting down of ideas
Explanation: Cedric could note down the ideas and points he remembers on the back of his test booklet. He should first read the question and make short notes of every point he remembers regarding that question.
This strategy will help Cedric to answer the questions while doing the final writing in answer sheet. By doing this he can also improve his speed with accuracy while answering.
