__________ specify future ends and _________

Holtzman Clothiers's stock currently sells for $31.00 a share. It just paid a dividend of $1.00 a share (i.e., D0 = $1.00). The

Llana [10]

Answer:

1. Year 1 expected value = $32.24

2. Required rate of return = 7.35%

Explanation:

1. For computing the stock price which is expected 1 year from now is shown below:

= Current Price × (1+rate)^number of years

= $31 × (1+0.04)^1

= $31 × 1.04

= $32.24

Hence, the expected 1 year value of stock price is $32.24

2. The required rate of return is computed by using an formula which is shown below:

= (Current Year dividend ÷ Current stock price)+ growth rate

where,

current year dividend is = D1

And, D1 = DO × (1+g)

where,

DO = previous dividend share

g = growth rate

So, $1 × (1+0.04)

= $1 × 1.04

= $1.04

Now apply these values to the above formula

So, required rate of return is equals to

= ($1.04 ÷ $31) + 0.04

= 7.35%

Hence, the required rate of return is 7.35%

5 0

3 years ago

Farmer Brian has 3 acres of land which he farms efficiently. Each acre can support 10 apple trees. However the 3 acres differ in

Alex17521 [72]

Answer:the opportunity cost of growing another apple tree is 2 orange trees

Explanation:

Opportunity cost represents the value of cost what must be given up toin order to obtain the best alternative.

Here Farmer Brain has 3 acres of land that can support 10 apple threes on each acre, and 30 orange tree on best acre, 20 on good acre and 10 oranges on bad acre.

that means he can grows 30 apples on the 3 acres and 60 oranges at on the 3 acres. giving us

the opportunity cost of growing an orange tree is

60 oranges ( 30+20+10)trees= 30 apples tress

1 orange tree = 30/60

1 orange tree=1/2 apples

therefore the opportunity cost of growing an orange tree is half apple tree, Also the opportunity cost of growing an apple tree is 2 orange trees

7 0

3 years ago

Claxton Company purchased a van on January 1, 2018, for $820,000. The estimated life of the van was five years, and its estim

vaieri [72.5K]

Answer:

The depreciation expense for 2020 is $215,100

Explanation:

Given

Claxton Company purchased a van on January 1, 2018, for $820,000.

Useful life = 5 years

Residual value = $103,000

Annual depreciation = ($820,000- $103,000)/5

= $717,000/5

= $143,400

At the beginning of 2020, the asset would have been depreciated for 2 years (2018 and 2019)

Net book value = $820,000 - 2($143,400)

= $533,200

Since the residual value remains the same after a revision of the estimated useful life from 5 years to 4 years

The asset would only have 2 years left for depreciation.

Annual depreciation = ($533,200 - $103,000)/2

= $430,200/2

= $215,100

5 0

3 years ago

During 2019, its first year of operations, Bento Steel Corporation reported a net operating loss of $500,000 for financial repor

erastovalidia [21]

Answer:

The amount of net income reported in 2020 income statement would be $75,000.

Explanation:

Pretax accounting income for 2020 = $100,000

Income tax expense for 2020 = Current tax + Reversal of Deferred tax assets

= ($100,000 - $100,000)*25% + ($100,000*25%)

= $25,000

Amount of net income reported in 2020 income statement = Pretax accounting income - Income tax expense

= $100,000 - $25,000

= $75,000

Therefore, The amount of net income reported in 2020 income statement would be $75,000.

8 0

3 years ago

While viewing a webpage for outdoor gear, Phil noticed a graphic display advertising skateboards at low prices. When he clicked

AURORKA [14]

Answer: This is an example of<em><u> "paid display" </u></em>type of Internet advertising

Paid display or pay-per-click advertising, is an effortless, inexpensive way to compass the right masses.

Here, When Phil clicked on the ad, it took him to a different website where the skateboards were listed for sale. Thus targeting the right audience with right ad.

5 0

2 years ago

__________ specify future ends and __________ specify today's means.

specify future ends and specify today's means.