Answer:
no
Explanation:
The hand book gave to other employes did the same so should jon.
Answer:
Current Price of the Share Stock is $ 37.86 (D)
Explanation:
Using dividend valuation method with a constant growth rate assumption, share price is calculated as : Po =D1/(Ke-g).
Where; Po ⇒Market Value excluding any dividend currently payable
D1= Do(1+g)⇒Expected dividend in one year's time
Ke =Required rate of return by shareholders
g= Dividend growth rate
<u>Calculation</u>
D1 = 5(1+0.06)= $5.3
Hence, Po= 5.3/(0.20-0.06)
Po=$37.86
The share price is expected to reflect the future expected stream of income i.e dividends and capital gains ,discounted at an appropriate cost of capital.
Some of the assumptions of dividend valuation method include but not limited to the following:
- it assumed that investors act rationality and in the same way ;
-the dividend either show growth or no growth;
-the discount rate used exceeds the dividend growth rate.
The correct option is that the case included conference calls that provided earnings guidance to shareholders and analysts were used to mask a financial fraud.
Answer:
$6,250
Explanation:
Cost of machine = $114,800
Salvage value = $14,800
Life of machine = 4 years
Depreciable cost = Cost - Salvage value
= $114,800 - $14,800
= $100,000
Date of purchase = October 1, 2020
Assets used for period in 2020 = 3 months
Annual depreciation:
= Depreciable cost ÷ life of assets
= $100,000 ÷ 4
= $25,000
Depreciation expense for 2020:
= Annual depreciation × (3 ÷ 12)
= 25,000 × (3 ÷ 12)
= $6,250