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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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Question 3
disa [49]

Answer:

B. The fact that I am a good person.

Explanation:

Credit history refers to a person's track record in borrowing and repayments of loans. It shows whether the individual has honored their debts in full and on time. Credit history is useful when applying for a loan from formal institutional lenders.

A bad credit history shows a person had issues in paying their loans. It affects their future borrowing as lenders may assess them as high-risk customers. Bad credit history attracts high-interest rates. Employers may judge some persons as poor money managers hence avoid hiring them.

Bad credit history is about debt payment but not who the person really is. Inability to repay loans may be caused by several factors such as illness or loss of income. A person's character remains the same regardless of their credit history.

7 0
3 years ago
Linguini Inc. adopted dollar-value LIFO (DVL) as of January 1, 2018, when it had an inventory of $841,000. Its inventory as of D
Andru [333]

Answer:

760,000

Explanation:

First find ending inventory at base pricing:

$874,000/1.15 = 760,000

Calculate real dollar increase/decrease in quantity

760,000-841,000 = -81,000

Since it is a decrease in quantity, you use prior period cost index. Prior period is the base year so you just use 1.0 which means that -81,000 stays the same

so now it is 841,000-81,000=760,000

8 0
3 years ago
During the current calendar year, Bowman Corporation purchased $660,000 of inventory. The beginning inventory balance was $84,00
Ratling [72]

Answer:

6.12 times

Explanation:

Cost of Goods Sold = $84,000 + $660,000 - $120,000

Cost of Goods Sold = $624,000

Average inventory = ($84,000 + $120,000) / 2

Average inventory = $102,000

Inventory Turnover = Cost of Goods Sold / Average inventory

Inventory Turnover = $624,000 / $102,000

Inventory Turnover = 6.117647059

Inventory Turnover = 6.12 times

6 0
3 years ago
What is one of the largest contributors to health problems in low-income countries?
WITCHER [35]

One of the largest contributions to health problems in low-income countries is the clean water access. It is because this is the common problem in low-income countries because they don’t usually have clean water because of their standing and other factors that create this problem and by that, this is the largest contributions that are used a project or contribution given by other counties to help the low-income countries experiencing this type of crisis.

6 0
4 years ago
Solve the equation.5x+7-3x=-10
KatRina [158]

x = -17/2  or   (decimal form)  -8.5

Hope that helps!

8 0
3 years ago
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