Opportunity cost is defined as the: a. value of all alternatives not chosen. b. difference between the benefits from a choice
1 answer:
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Answer:
The stock will trade for 4.30 dollars in the market
Explanation:
The stock will be valued at the discounted value of their future cash flow.
w calculate the cas flow by multiplying by the grow rate given.
Then we discount using the present value of a lump sum:
Maturity $0.5000
time 3.00
rate 0.18
PV 0.30
Then, for the entire of the dividend after year 6th we use the gordon model:
dividends / (rate - grow) and then we discount that
Y# Cashflow Discounted
0 0
1 0
2 0
3 0.5 0.304315436
4 0.825 0.425525822
5 1.36125 0.595014921
6 1.4565375 2.971555503
Total 4.296411682
Answer:
$84,000
Explanation:
A company's net income can be determined by subtracting the cost of goods sold from the revenues to obtain the income before taxes and then multiply it by one minus the tax rate.
If revenues are $400,000 and cost of goods sold are $280,000 at a tax rate of 30%, net income for the year is:
The company's net income for the year is $84,000.