What is the main disadvantage of moving to e-money loading... or moving to a cashless society?

The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 1

Keith_Richards [23]

Answer:

$259.34

Explanation:

the value of the stock can be determined using the two stage dividend discount model.

In the first stage, the present value would be determined using a discount rate of 18%.

In the second stage, the present value would be determined using a discount rate of 6%.

Values from the first and second stage would be added together to determine the value of the stock

First stage

Present value in year 1 = ($3.2 x 1.18) / 1.087 = $3.47

Present value in year 2 = ($3.2 x 1.18²) / 1.087² = $3.77

Present value in year 3 = ($3.2 x 1.18³) / 1.087³ = $4.09

Present value in year 4 = ($3.2 x 1.18^4) / 1.087^4 = $4.44

Second stage

($3.2 x 1.18^4 x 1.06) / (0.087 - 0.06) = 243.57

Value of the stock = $3.47 + $3.77 + $4.09 + $4.44 + 243.57 = $259.34

7 0

2 years ago

Klingon Cruisers, Inc., purchased new cloaking machinery five years ago for $20 million. The machinery can be sold to the Romula

muminat

Answer:

1) Book Value= $16,464,000

2) Market Value = $19,080,000

Explanation:

The first question is to determine the book value of Klingon's assets today. Book value is the carrying value of the business in its balance sheet.

Book Value = Net working Capital + Current Liabilities + Net Fixed Assets

Net working Capital= $226,000

Current Liabilities= $700,000

Net Fixed Assets= $15,500,000

Book Value = $226,000+ $700,000+$15,500,000= $16,464,000

2) Calculate the market value

The formula for market value = How much the machinery was sold to Romulans today+ today's value of the current assets if they are liquidated

The market value of assets is a function of the current market price they can be sold for and received on the day of the valuation

Market Value= $18,000,000 + $1,080,000= $19,080,000

4 0

3 years ago

Type the correct answer in the box. Which marketing-related concept is described in the following scenario? The booming Industri

DanielleElmas [232]

<u>Answer: </u>Production concept

<u>Explanation:</u>

Production concept is based on concentrating on the efficiency of the production and manufacturing. The basis of production concept is to make the goods available to the consumer at affordable prices. By producing in mass quantities the companies believed they can reduce the cost of production.

Also that supply can be increased when the cost of production is lower. Economies of scale can be achieved by the company when they reduce cost of production they can increase their profit earning capacity.

4 0

2 years ago

As a sole proprietor, what are the ways in which you can raise money to establish your business, and make it grow?

kolezko [41]

Answer:

Take out a small business loan.

Explanation:

A small loan is a way, based on your credit, to establish a way to raise money.

3 0

2 years ago

In gathering audit evidence, the accessibility of information may be a factor thereby influencing which judgment trigger

bazaltina [42]

The answer is availability

8 0

2 years ago

What is the main disadvantage of moving to e-money loading... or moving to a cashless​ society?

What is the main disadvantage of moving to e-money loading... or moving to a cashless society?