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Mariana [72]
3 years ago
6

Lakeside Sheet Metal is downsizing and plans on completely closing 3 years from now. The firm's liquidation plan calls for annua

l dividends of $3, $6, and $36 over the next 3 years, respectively. What is the current value of this stock given a discount rate of 14 percent?
Business
1 answer:
sergeinik [125]3 years ago
3 0

Answer:

Current Value = $31.50

Explanation:

The stock price formula in general is:

P_n=\frac{D_n}{(1+g)^n}

Where

P is the stock price

D is the dividend

g is the growth rate, discount rate

Now, we have to find the sum of all the prices in each year:

\frac{3}{1+0.14}+\frac{6}{(1+0.14)^2}+\frac{36}{(1+0.14)^3}= 31.50

Current Value = $31.50

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Perhaps the most significant federal statute specifically addressing cyber crime is the:________.
frosja888 [35]

Answer:

c. Computer Fraud and Abuse Act.

Explanation:

Computer Fraud and Abuse Act (CFAA) is a cyber security bill that was enacted in 1986 and is an amendment of of Comprehensive Crime Control Act of 1984.

The acts forbids a person to access a computer without proper authorisation or an excess of required authority.

Before this time cybercrime was prosecuted as mail and wire fraud. This was often inadequate.

Other provisions the act addresses are distribution of malicious code, denial of service attacks, and trafficking in passwords

3 0
3 years ago
Terrell Trucking Company is in the process of setting its target capital structure. The CFO believes that the optimal debt-to-ca
Semenov [28]

Answer:

a. Terrell's Optimal Capital Structure is 40:60. It means to obtain optimal capital structure in-order to increase value of firm, Terrell should finance 40% of its Assets through Debt and remaining through Common Equity.

b. The optimal Capital Structure is the point where company's WACC is minimized. So, 40:60 is the ratio where Terrell's WACC will be minimized.

Explanation:

The goal of Management is to increase Shareholders' wealth and not to generate profits because wealth is something that is for long-run whereas Profits are temporary. Management would accept projects having negative NPV if its goal is to maximize Profit.

Maximizing Shareholders' wealth means to increase the Share Price whereas Generating a higher EPS is Profit Maximization Strategy. So, you should look for that Capital Structure Point where the Company's Stock Price is Highest.

Thanks!

4 0
2 years ago
1. When the quantity supplied is larger than the quantity demanded.: When the quantity supplied is larger than the quantity dema
ASHA 777 [7]

Answer:

1. b.Excess Supply

2. e.Equilibrium Quantity

3. c.Equilibrium

4. a.Equilibrium Price

5. d.Excess Demand

7 0
2 years ago
Universal Containers requires that the organization-wide default for opportunities be set to public read/write. However, sales u
____ [38]

Answer: The correct answer is "D. Use the show filter to filter report results and reduce records returned".

Explanation: If sales users are complaining that opportunity reports return too many results, making it difficult to find their team’s opportunities in the report results it would be convenient <u>use the show filter to filter report results and reduce records returned.</u>

7 0
3 years ago
Using the following end-of-year information, calculate the number of days' sales in receivables for Year 2.
victus00 [196]

Answer:

The number of days' sales in receivables for Year 2 is 48.7

Explanation:

The formula that is applicable to this scenario is the accounts receivable divided by sales multiplied by 365 days

The number of days' sales in receivables=$11,000/$82,500*365=48.67  

The correct option is D, since the 48.67 was simply rounded down to one decimal place.

6 0
3 years ago
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