Answer:
P3 = $96.9425 rounded off to $96.94
Explanation:
To calculate the market price of the stock three years from today (P3), we will use the constant growth model of DDM. The constant growth model calculates the values of the stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D1) / (r - g)
Where,
- D1 is the dividend expected for the next period
- g is the constant growth rate
- r is the required rate of return on the stock
To calculate the price of the stock today (P0), we use the dividend expected for the next period (D1). So, to calculate the price at the end of 3 years (P3) we will use D4.
We first need to calculate r using the CAPM equation. The equation is,
r = rRF + Beta * rpM
Where,
- rRF is the risk free rate
- rpM is the market risk premium
r = 0.058 + 0.6 * 0.05
r = 0.088 or 8.8%
Using the price formula for DDM above and the values for P0, D1 and r, we can calculate the g to be,
80 = 1.75 / (0.088 - g)
80 * (0.088 - g) = 1.75
7.04 - 80g = 1.75
7.04 - 1.75 = 80g
5.29/80 = g
g = 0.066125 or 6.6125%
We first need to calculate D4.
D4 = D1 * (1+g)^3
D4 = 1.75 * (1+0.066125)^3
D4 = 2.12061793907
Using the formula from DDM for P3, we can calculate P3 to be,
P3 = 2.12061793907 / (0.088 - 0.066125)
P3 = $96.9425 rounded off to $96.94
Computer and desk
Explanation:
As for small-business assets, the latest IRS regulation postiton notes that funds under $2500 may be shown as business expenses, which was under $500 until 2016. This was $500.
Legal and incorporation payments are allowed in accordance with normal business practices such as return loading, etc. But it is expected to be connected to the new office roof. Here query does not suggest. Hence not allowable.
Computers that you are buying to use in your business or at work are exempt. If you are true, in a single year you can deduct the entire cost. Computers are no longer included in the tax cuts and employment law, therefore less reports are required and incentive depreciation can be used.
Answer:
the money amount
Explanation:
the money amount because u cant just go some where and pick up an item and not have the reimbursement of the cost. if jack went to the store only with 5 dollars there is not a way of getting something that cost 10 dollars he have to go smaller
