Answer: 10.46
Explanation:
To answer this we can use the Constant Growth Model of Stock Valuation. The formula is,
P = D1/(r-g)
Where,
P is the current price,
D1 is the next dividend
g is the expected growth rate in the dividend,
and r is the required rate of return for the company.
Seeing as we have everything else and it is the required return that we seek, let us make 'r' the subject of the formula.
P = D1/(r-g)
P(r-g) = D1
r-g = D1/P
r = D1/P +g
So,
r = 2.95/ 49.50 + 0.045
= 0.10459595959
= 10.46%
the required return is 10.46%
When a company owns between 20% and 50% of stock in another company as a long term investment, they would use the Equity method.
<h3>What is the equity method?</h3>
This is a method of recording the affairs of a company by the another company when that company owns between 20% and 50% of the subsidiary.
This method assumes that the company that owns between 20% and 50%, is very influential and so should record the shares they own to reflect that influence.
Find out more on the equity method at brainly.com/question/26341069.
Answer:
Option A ( Initiator) is correct
Explanation:
Initiator is the purchasing role that Hannah is playing in this case. As she identified the need to buy a particular product i.e computers to solve the problem of the organization.
Answer:
<em>Sole proprietorship</em>
Explanation:
Judy has realized that she does not like working for others . She wants to open a business in which she will have maximum control and the least fro, government regulations . <u>Sole proprietorship</u> is best suited for Judy's needs.
<em>Sole proprietorship is the form of business in which a single person is responsible for all the decisions , that single person have full control over the business . </em>
Sole proprietorship is the form of business which is easy to form with no legal formalities. There is a secrecy in Sole proprietorship . In Sole proprietorship the interference of the government is minimum .Sole proprietorship facilitate quick decision making as he /she does not need to concern with others. In the sole proprietorship , the individual need not share his profit with other person . The overhead cost in Sole proprietorship is less.
In you need not to work under anyone, you just need to open it and run according to you , you have full control over it , as no one can say anything to you .
Answer:
$38,448,000
Explanation:
Calculation to determine What will the book value of this purchase
First step
Depreciation = (cost - salvage)/useful life
Depreciation= (40,900,000 - 4,090,000 )/15
Depreciation=36810000/15
Depreciation=2454000
Now let determine the
Book value=Cost -Depreciation
Book value=$40,900,000-$2,454,000
Book value=$38,448,000
Therefore the book value of this purchase is$38,448,000