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Tomtit [17]
3 years ago
10

Suzi owns 100 shares of AB stock. She expects to receive a $238 in dividends next year. She also expects the stock to sell for $

46 a share one year from now. What is the intrinsic value of this stock if the dividend payout ratio is 40% and the discount rate is 13.5%
Business
1 answer:
lesya692 [45]3 years ago
8 0

Answer: $42.63

Explanation:

To calculate this we will add the present value of Future cash flows (dividends) to the present value of the stock.

Dividend per share one year from now is,

= 238/100

= $2.38

Stock Price a year from now = $46

Discount rate is $13.5%

PV of sum = 2.38/(1+0.135) + 46/ (1 + 0.135)

= 42.6255506608

= 42.63

$42.63 is the Intrinsic value of the stock.

If you need any clarification do react or comment.

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the relationship between the strategic planning process and portfolio management in an organization ______
Verizon [17]

Answer:

Explained below:

Explanation:

The Strategic Planning process is a planning process performed by the top-level management, to decide where the organization is willing to reach in the coming day and Portfolio management is the act of building and maintaining an appropriate investment mix for given risk tolerance.

Portfolio management in an organization is closely associated with each other as when the organization requires to do investment, it necessity be done through the  Strategic Planning process which is performed by the top-level management to minimize the risk.

3 0
3 years ago
Tonto Company purchased property for $125,000. The property included a building, equipment and land. The building was appraised
velikii [3]

Answer:

The cost allocated to the building is $ 62,068.97  

Explanation:

The total appraised cost for the components of the property purchased=$72,000+$50,000+$23,000=$ 145,000.00  

The cost allocated to the building in the accounting records is the cost of the property multiplied by the building appraised value of $72,000 while dividing by the total of the  appraised value of $145,000

cost allocated to building=$125,000*$72,000/$145,000=$ 62,068.97  

3 0
3 years ago
Tara has started a new job and has been assigned to work on a team. She is anxious about getting along with her new team members
kap26 [50]
B. Avoid gossip
Getting along with team means being yourself and not gossiping with others.

C is not the answer because you want to make sure you are aware of complaints.
D is not the answer because when you give gifts, sometimes people can take advantage of you because they know you want to get along with them
A is not the answer because to get along and work together you have to share ideas
6 0
3 years ago
Read 2 more answers
Pay your Taxes :DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD
horrorfan [7]

Answer:

do you need help with that or are you saying that

Explanation:

7 0
3 years ago
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GRZ Inc. purchased a customized delivery truck in January 2018 for $70,000. They plan to use this truck for 7 years, and the com
asambeis [7]

Answer:

The correct answer is A) $2.800

Explanation:

Using the straight-line method to depreciate, the calculation to find the depreciation tax shield is the following:

  1. Finding the depreciable cost: Depreciable cost = purchase price ($70,000) - salvage value ($14,000) = $56,000
  2. Finding the depreciation per year: Depreciation/year = \frac{Depreciable cost (56,000)}{Asset useful life (7 years)} = $8000
  3. Finally, the depreciation tax shield for 2018: Depreciation tax shield = Dep/year ($8,000) * tax rate (0,35) = $2,800
7 0
3 years ago
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