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poizon [28]
3 years ago
13

A stock is expected to pay the following dividends per share over the next four​ years, respectively: ​ $0.00, $2.30,​ 2.60, and

​ $2.90. If you expect to be able to sell the stock for​ $95.83 in four years and your required rate of return is​ 6%, what is the most that you should be willing to pay for a share of this stock​ today?
Business
1 answer:
Snowcat [4.5K]3 years ago
3 0

Answer:

present value of stoke combine equation is $82.43

Explanation:

Given data

no of period = 4

discount rate = 6% = 0.06

dividends = $0.00, $2.30,​ 2.60, and​ $2.90

to find out

current stoke price

solution

we know dividend is 0 for st year so present value for 1st year will be 0 .....1

now we calculate

present value 2nd year dividend is = 2.30 / (1+0.06)^2

present value 2nd year dividend is = $2.05   ............2

present value 3rd year dividend is = 2.60 / (1+0.06)^3

present value 3rd year dividend is = $2.18    ..............3

present value 4th year dividend is = 95.83 / (1+0.06)^4

present value 4th year dividend is = $75.91    ..............4

present value of stoke  combine equation 1 + 2 + 3 + 4

present value of stoke  combine equation = 2.05 + 2.18 + 2.30 + 75.91

present value of stoke combine equation is $82.43

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On January 1, 2021, the Excel Delivery Company purchased a delivery van for $46,000. At the end of its five-year service life, i
marusya05 [52]

Answer:

Given

Cost $46000

Life= 5 years

Salvage Value= $ 4000

Total miles = 165,000

Formula

Depreciation Straight Line Method= Cost - Salvage Value/ Useful Life

Straight Line Rate= 100%/ useful Life= 100%/5 = 20%

Double Declining Method = 2 * Straight Line Rate

Double Declining Method = 2 * Straight Line Rate= 2*20%= 40%

1. Depreciation Straight Line Method= Cost - Salvage Value/ Useful Life

Depreciation Straight Line Method= $ 46000- $4000/ 5= $ 8,400

The depreciation expense using the straight line method does not change unless the salvage value is reached

Years        Depreciation      Accumulated Dep          Book Value

                                                                                (Cost - Accu. Dep)

a. 2021       $ 8,4000               8400                            37600

b. 2022       $ 8,4000               16,800                         29,200

c. 2023        $ 8,4000              25200                          20,800  

d. 2024       $ 8,4000              33,600                        12,400

e. 2025       $ 8,4000             42000                        4000

2. Straight Line Rate= 100%/ useful Life= 100%/5 = 20%

Double Declining Method = 2 * Straight Line Rate

Double Declining Method = 2 * Straight Line Rate= 2*20%= 40%

In double declining method the rate is multiplied to the cost to get the depreciation expense. 40 % of $ 46000= $ 18400

Each year the rate is multiplied with the remaining book value after deducting the depreciation expense from the cost as $ 46000- $ 18400= $ 27600

Next years depreciation will be $ 27600 * 40%= $ 11040.

This will be added in the original depreciation expense $ 18400 + $ 11040 = $ 29440 and deducted from cost to get the book value. $ 46,000- $ 29440 = $ 16560.

Again rate will be multiplied and each years depreciation will be calculated similarly.

It has been summarized in the table below.

Years       Dep Rate      Dep Expense       Accu. Dep.     Book Value

a. 2021        40%           18400                   18400               27600

b. 2022       40%           11040                     29440               16560

c. 2023       40%             6624                     36064               9936

d. 2024       40%             3974.4                  40,038.4         5961.6

e. 2025       40%            2384.64                   42,0423.4     3576.96

3. Depreciation per unit= (Cost -Salvage value) / Total units of production* Units of Production

Years       Mileage      Depreciation                    Depreciation

a. 2021      35,000     ($ 42000/165000)*35000        8909.09

b. 2022     37,000      ($ 42000/165000)*37000       9418.18

c. 2023      28,000     ($ 42000/165000)*28000        7127.27

d. 2024      33,000      ($ 42000/165000)*33000        8400

e. 2025      34,000    ($ 42000/165000)*34000         8654.54

7 0
3 years ago
Businesspeople from ________ often arrive after the scheduled meeting time and prefer to spend time building personal trust befo
tatyana61 [14]

Latin American businesspeople frequently come after the agreed meeting time because they prefer to first spend time establishing a good relation. They also conduct meetings informally, allowing them to show up well past the appointed time.

Goals drive business communication. People inside and outside of an organization must be informed of the rules, regulations, and policies of that organization. Business communication is governed by a set of standards and guidelines. Early corporate communication was restricted to written correspondence, telephone calls, etc. However, with the advancement of technology, we now have satellite communication, cell phones, video conferencing, emails, and more to facilitate corporate communication. Effective business communication contributes to an organization's reputation-building efforts.

Any firm depends on its customers. You may maintain effective contact with your consumers and create enduring relationships if you work on developing excellent interpersonal skills.

Customers who are satisfied will promote your company. They advertise and endorse your company. They are, however, also more understanding when things don't go as planned.

Learn more about effective communication here

brainly.com/question/4123103

#SJP4

8 0
1 year ago
Guest expectations +____________=guest satisfaction
avanturin [10]

Answer: C. Perceived Value

Explanation:

When we speak of Perceived value, we speak of how a customer evaluates a good or service in relation to how well it served them especially in relation to similar good or services.

It is essentially the customer, ranking a good or service in terms of how well they feel it fulfilled it's intended purpose.

When guests to an Establishment come with expectations for instance, how well the guests think these expectations are met (perceived Value) is what determines the overall satisfaction of the guest.

Hence the formula, Guest expectations + Perceived Value = Guest Satisfaction

7 0
3 years ago
Stock J has a beta of 1.26 and an expected return of 13.46 percent, while Stock K has a beta of .81 and an expected return of 10
Oxana [17]

Answer:

J = 0.422

K = 0.58

Explanation:

When a portfolio is said to have risk that is equal to market, this means that the beta is equal to 1.

Let us define the weight of stock J = x

Let us define the Weight of stock K = (1-x)

To get the The Beta of portfolio = (x*1.26) + ((1-x)*0.81) = 1

When we open the brackets,

1.26x + 0.81 - .81x = 1

1.26x-0.81x = 1-0.81

0.45x = 0.19

To get x we divide through by 0.45

X = 0.422

Therefore the Weight of stock J = 0.422

Then the Weight of stock K = 1 - 0.422 = 0.578

Approximately 0.58

5 0
3 years ago
Cheyenne Corp. had the following transactions during the current period.
Soloha48 [4]

Answer:

Mar. 2 Issued 4,000 shares of $4 par value common stock to attorneys in payment of a bill for $21,200 for services performed in helping the company to incorporate.

Dr Incorporation expenses 21,200

    Cr Common stock 16,000

    Cr Additional paid in capital - common stocks 5,200

June 12 Issued 56,400 shares of $4 par value common stock for cash of $305,500.

Dr Cash 305,500

    Cr Common stocks 225,600

    Cr Additional paid in capital - common stocks 79,900

July 11 Issued 1,950 shares of $100 par value preferred stock for cash at $130 per share.

Dr Cash 253,500

    Cr Preferred stocks 195,000

    Cr Additional paid in capital - preferred stocks 58,500

Nov. 28 Purchased 2,560 shares of treasury stock for $78,500.

Dr Treasury stocks 78,500

    Cr Cash 78,500

Treasury stocks account is a contra equity account which decreases the value of stockholders' equity.

8 0
3 years ago
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