When the required rate of return for such stocks is 20 percent, the current price of the stock is 15.63.
<h3>What is stock?</h3>
Stock in finance refers to all of the shares that make up a corporation's or company's ownership. A single share of stock represents fractional ownership of the corporation based on the total number of shares. A stock is a broad term that refers to any company's ownership certificates.
The price will be calculated thus:
D1 = 1.25
D2 = 1.25 × (11+.40)
D3 = 1.25 × (1+.40) × (1+.20)
D4 = 1.25 × (1+.40) × (1+.20)^2
P4 = 1.25 × (1+.40) × (1+.20)^2 × (1+.08)/(.20 - .08)
Note that d is the dividend.
Current Stock Price = 1.25/(1+.20)^1 + 1.25*(1+.40)/(1+.20)^2 + 1.25*(1+.40)*(1+.20)/(1+.20)^3 + 1.25*(1+.40)*(1+.20)^2/(1+.20)^4 + 1.25*(1+.40)*(1+.20)^2*(1+.08)/(.20 - .08)*(1+.20)^4 = 15.625 or 15.63
Therefore, the current price is 15.63.
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Answer:
d. $166,000
Explanation:
Under the weighted average method, cost to be accounted =
cost ending work in process inventory of $18,000 + cost of unit to be transfer out of $148,00
Answer:
The answer is below
Explanation:
a. Fee paid to factory representative for installation - DEBITED to Asset account
b. Freight - DEBITED to Asset account
c. Insurance while in transit - DEBITED to Asset account
d. New parts to replace those damaged in unloading - NOT DEBITED to Asset account
To understand which costs incurred in acquiring the new printing press should be debited to the asset account, it should be noted that "new parts to replace those damaged in unloading" does not lead to improvement in assets, hence, it should be considered as Expense instead of being devoted into the asset account.
Answer:
demographic and psychographic segmentation
Explanation:
Tiara's target market is based on age (demographic) and interests (psychographic)
Answer: Capital structure
Explanation: In simple words, capital structure refers to the proportion of different securities that an organisation uses as a combination to fund its operations. In other words, the amount of debt and equity in total capital in hand of the business is termed as capital structure.
Capital structure is of high importance to the investors as it directly impacts the liquidity and profitability of the organisation.
The ability of a company to bear its short term obligation is called liquidity and the ability to generate profit with given amount of resources is called profitability.
