Answer:
Option (a) is correct.
Explanation:
Given that,
Dividend pay in year 7, D7 = $2 per share
Growth rate of dividend, g = 2.2 percent per year
Required return, ke = 16 percent
Present value of the future dividend at year 6:
= D7 ÷ (ke - g)
= $2 ÷ (0.16 - 0.022)
= $14.49
Therefore, the present value of dividend now is as follows;
= Present value of the future dividend at year 6 × (1 + ke)^{-6}
= $14.49 × (1 + 0.16)^{-6}
= $5.95
Answer:
Channel of distribution
Explanation:
A channel of distribution is a means used to get a product from the producer or manufacturer to the consumer. Channels of distribution include wholesalers, retailers, distributors etc.
Answer:
The amount of depreciation expense the lessee should record for the first year of the lease is $108,000
Explanation:
To calculate the depreciation expense for each year the first thing you have to do is to substruct from the initial value the fair value at the end fo the lease, obtaining this way the depreciable amount.
For this case it would be:
$810,000 - $270,000= $540,000
Then you have to divide the depreciable amount by the years of the term the lease.
$540,000/5= $108,000
Answer:
$16,800
Explanation:
Calculation to determine what Lincoln Company's work opportunity credit is
Work opportunity credit= $6,000 * .40 *7
Work opportunity credit = $16,800
Therefore Lincoln Company's work opportunity credit is $16,800
Answer:
Kindly check attached picture for detailed answer and explanation
Explanation:
Given :
January 5: Issued 300,000 of its common shares for $8 per share and 3,000 preferred shares at $110. February 12: Issued 50,000 shares of common stock in exchange for equipment with a known cash price of $310,000. The articles of incorporation authorize 5,000,000 shares with a par value of $1 per share of common and 1,000,000 preferred shares with a par value of $100 per share.
