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vekshin1
3 years ago
9

Caterpillars, Inc., a manufacturing company, acquired equipment on January 1, 2014 for $530,000. Estimated useful life of the eq

uipment was seven years and the estimated residual value was $13,000. On January 1, 2017, after using the equipment for three years, the total estimated useful life has been revised to nine total years. Residual value remains unchanged. The company uses the straight-line method of depreciation. Calculate depreciation expense for 2017. (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.) a. $50,476 b. $49,238 c. $57,444 d. $58,889

Business
1 answer:
scoray [572]3 years ago
8 0

Answer:

b. $49,238

Explanation:

Please see attachment

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Answer:

The value of the stock is $19.50

Explanation:

Hi, let´s check out the formula that we need to use in order to find the price of this stock.

Price=\frac{Do(1+g)}{r-g}

Where:

Do= last dividend (in our case, $1.30)

g = growth rate of the dividend (in our case, 5% or 0.05)

r = required rate of return (in our case, 12% or 0.12)

Everything should look like this:

Price=\frac{1.30(1+0.05)}{0.12-0.05} =19.50

Therefore, the value of this stock is $19.50

Best of luck.

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Before the New Deal, the government was expected to be more or less laissez-faire.  It was supposed to just stay out of the way and let the economy rise or fall "naturally."  If people were too old to work, they needed to rely on family.  If a bank failed, its depositors were out of luck.  The New Deal changed all of that.

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