Answer:
9.16% and 5.95%
Explanation:
The attachment is shown below:
Given that,
Present value = 108% × $1,000 = $1,080
Assuming figure - Future value or Face value = $1,000
PMT = 1,000 × 10% ÷ 2 = $50
NPER = 30 years - 7 years × 2 = 46 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this,
1. The pretax cost of debt is 9.16%
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 9.16% × ( 1 - 0.35)
= 5.95%
Answer:
The expanding accounting equation is:
Assets = Liabilities + Stockholders Equity
[Common Stock + Retained Earnings]
(Revenues - Expenses - Dividends)
Now, we replace the amounts in the formula
$84,325 = $2,560 + X
[ X + R ]
($54,780 - $28,125 - $13,450)
$84,325 = $2,560 + X
[ X + R ]
($54,780 - $28,125 - $13,450)
$84,325 = $2,560 + X
[ X + $13,205 ]
$84,325 = $2,560 + X
[ 68,560 + $13,205 ]
$84,325 = $2,560 + $81,765
Both sides are now equal to $84,325
Thus, Common Stock = $68,560
Answer:
8.66%
Explanation:
The computation of the real rate of return is shown below:
Real rate of return = {( 1 + nominal rate of return) ÷ ( 1+ inflation rate)} - 1
= {( 1 + 11.65%) ÷ ( 1 + 2.75%)} - 1
= {(1.1165) ÷ (1.0275)} - 1
= 1.086 - 1
= 0.0866 or 8.66%
We simply apply the formula in which the numerator is nominal rate of return and denominator is inflation rate of return
C wait another week before taking action the post office maybe behind
Answer:
The correct answer is letter "D": equal to the present value of all expected future dividends.
Explanation:
The Constant-Dash-Growth Valuation or the Gordon Growth Model is used to calculate the intrinsic value of a stock today based on the stock's expected future dividends. It is widely used by investors and analysts to compare the predicted stock value against the actual market price. The difference between them may determine if the stock is overvalued or undervalued by the market.