Answer:
Required rate of return = 12.2%
Explanation:
According to the dividend growth model the price of a stock is
D*(1+G)/R-G
D= dividend
G=growth
R= Required rate of return
In order to find the required rate of return we will put the values given to us in the question into the formula.
D=5
G=2%
Price = $50
50=5*(1+0.02)/R-0.02
50R-1=5.1
50R=5.1+1
50R=6.1
R=6.1/50
R=0.122=12.2%
Answer:
$35,000
Explanation:
As the Allowance of Doubtful Accounts account already has the balance of $12,000, and we need $35,000 at the end of the year. We know that Allowance of Doubtful Accounts account account has credit nature so it needed $23,000 ($35,000 - $12,000) to be adjusted at the end of the year to make the adjusted balance equals to $35,000. So, the adjusted account balance will be $35,000.
Answer:
$100,000
Explanation:
Cash flow = $10,000
Interest rate = 3%
Growth = -7%
Value of this mining operation = Cash / (Rate - Growth)
Value of this mining operation = $10,000 / (3% -(-7%)
Value of this mining operation = $10,000 / 10%
Value of this mining operation = $10,000 / 0.10
Value of this mining operation = $100,000
Answer:
A - Set aside a portion of your income each month.
Hope This Helps
