Answer:
Present value = $35.00326585 rounded off to $35.00
Explanation:
Using the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the present value of the stock, we will use the following formula,
Present value = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n +
[(Dn * (1+g) / (r - g)) / (1+r)^n]
Where,
- r is the required rate of return
- g is the constant growth rate in dividends
- n is the number of years
Present value = 5 / (1+0.155) + 6.25 / (1+0.155)^2 + 4.75 / (1+0.155)^3 +
3 / (1+0.155)^4 + [(3 * (1+0.07) / (0.155 - 0.07)) / (1+0.155)^4]
Present value = $35.00326585 rounded off to $35.00
The average of inventory is the average amount of inventory available in stock for a specific period.
To calculate the average of inventory, take the current period inventory balance and add it to the prior period inventory balance. Divide the total by two to get the average inventory amount.
Answer:
Effective
Explanation:
Segregation of duties (SOD) is an essential part of the effectiveness of internal controls for any business. This integral separation ensures that key processes are performed by more than one person to prevent fraud or financial misstatement. While technology continues to become more sophisticated, the time is now to implement controls that segregate key functions within processes such as cash disbursements, investments, payroll, and many other areas.
Maarja's Razors is implementing effectively the segregation of duties. Key processes are performed by more than one person, and this helps in flexibility of operations.
A. Decreases
Hope it helps!
Answer:
$75,000
Explanation:
Calculation for the annual dividend on the preferred stock
Using this formula
Annual Dividend= Number of shares × Par value × Dividend %
Let plug in the formula
Annual Dividend= 10,000 shares × $125 × 6%
Annual Dividend= $75,000
Therefore the annual dividend on the preferred stock will be $75,000
