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Mariana [72]
2 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]2 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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alexandr1967 [171]

Answer:

Trade credit

Explanation:

Trade credit occurs between traders where a trader allows another to purchase goods without paying for them immediately.

It is the cheapest form of short term financing.

This is a form of business to business agreement where payment is set at a later date of 30 days, 90 days or 60 days.

The transaction is recorded by using invoice.

Usually it is a zero percent short term finance. The amount of the good at time of purchase is what is paid at the sure date.

There is no extra payment made by the buyer as interest on the amount agreed.

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2 years ago
The fact that financial services are more plentiful and easier to access means that
DaniilM [7]
A. consumers need to be better informed about what services are available and what those services cost.
8 0
3 years ago
Why are public goods important
umka2103 [35]

Answer:

Because it can be use by many people

6 0
3 years ago
Tim is a single, cash-method taxpayer with an AGI of $50,000. In April of this year, Tim paid $1,100 with his state income tax r
Ivan

Answer:

The amount of taxes that Tim can deduct as an itemized deduction is $7,340

Explanation:

The computation of the itemized deduction is shown below:

= State income tax for the previous year + state income tax from his salary + estimated payments of state income tax

= $1,100 + $5,050 + $1,190

= $7,340

The other item values which are mentioned in the question are not considered and not affect the deductions for current year So, we do not take in the computation part. Hence, ignored it

8 0
2 years ago
The financial statements of New World, Inc., provide the following information for the current year: Dec.31 Jan.1Accounts receiv
pashok25 [27]

Answer:

A $3066000

Explanation:

The formula for cash received from customers is: opening receivables+net sales-closing receivables.

The rationale behind the formula is that opening receivables would have turned cash by year end since current asset last one year maximum.

=$241500+$3097500-$273000

=$3066000

3 0
3 years ago
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