Answer:
E: 6.34
Explanation:
First we solve for the PV of the next years dividends using the lump sum PV formula:
rate = 12%
![\left[\begin{array}{ccc}Year÷nds&PV\\1&1.3&1.1607\\2&1.69&1.3473\\3&2.197&1.5638\\4&2.8561&1.8151\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccc%7DYear%26dividends%26PV%5C%5C1%261.3%261.1607%5C%5C2%261.69%261.3473%5C%5C3%262.197%261.5638%5C%5C4%262.8561%261.8151%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Total of 5.8869
Then, this with the PV of the future dividends usign the gordon model should match 40 dollars.
so the PV of the indefinite sum of dividends should be: 40 - 5.8869 = 34.1131
\frac{Dividends_1}{return - growth} = Value
This is four years into the future thus, we discount as well for the rate of return We want ot knwo the value at the fourth year to solve for the grow rate:
34.1131 x 1.12^4 = 53.67762328
Now the formual for the gordon model requires next year dividends thus D0 x 1 + g and we don't know g so we have to operate to solve it:
The correct answer would be E
Answer:
corporation
Explanation:
A corporation refers to an organization that is governed by a single entity. The responsibilities of the individuals are levied on the corporations. In corporations, a group of people act collectively. The group of shareholders represent the common goal in an organization.
According to the given expert, Joe and Mark should organize their firm as a corporation. This would help them not to loose any of their personal asset.
The activities reflected in the accounting system are:
- 1. Analyzing and interpreting reports. - Communicating
- 2. Acquiring knowledge of revenue transactions. -identifying
- 3. Reporting debt owed to lenders. - Communicating
- 4. Maintaining a log of sales transactions.- recording
- 5. Measuring revenue from a holiday sale.- recording
- 6. Measuring the costs of a product. - recording
- 7. Reporting the profitability of a product line. - Communicating
- 8. Preparing financial statements. - Communicating
<h3>What are some aspects of accounting?</h3>
There is the communicating aspect which is related to how information from the financial statements are presented so that people have access to that communication.
Identifying refers to finding out the various accounting transactions. Recording refers to all aspects of noting down information in accounting and putting them in financial statements.
Find out more on aspects of accounting at brainly.com/question/26380452
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Answer:
The after tax real interest rate of interest is 2%
Explanation:
The after tax real interest rate is computed as follows:
Given,
Nominal interest rate is 5%
Inflation rate is 2%
Computing before tax real interest rate as:
Before tax real interest rate = Nominal interest rate - Inflation rate
= 5% - 2%
= 3%
Computing tax:
= 20% tax on nominal interest rate
= 20% × 5%
= 1%
Now, computing after tax real interest rate as:
After tax real interest rate = Before tax real interest rate - Tax
= 3% - 1%
After tax real interest rate = 2%
Answer:
An example of a customer would be someone buying one of your products like someone shopping at a store.
A consumer would be eating the food you have or bought
Examples of client in a Sentence. The accountant is meeting with another client right now, but she'll be able to see you later this afternoon. a law firm soliciting new clients through television advertising. Recent Examples on the Web.
Explanation:
