Answer:
There's an error in the numbers for this question; I found the correct one and pasted it below;
"Great Lakes Steel Supply is losing significant market share and thus its managers have decided to decrease the firm's annual dividend. The last annual dividend was $1.30 per share but all future dividends will be decreased by 2.75 percent annually. What is a share of this stock worth today at a required return of 15.5 percent? "
Explanation:
Use dividend discount model (DDM) to calculate the stock price
whereby,
P0 = Current price
D0 = Last dividend paid = 130
g = growth rate = -275% or -2.75 as a decimal
r = required return = 155% or 1.55 as a decimal
Next, plug in the numbers to the DDM formula above;
Therefore this stock is worth $6.93
The opportunity cost is stated in relative pricing, that is, the price of one option in comparison to another.
When there are numerous vendors in a market but no one is significant enough to control the price of a product. Because both items must be produced, the relative price must match the opportunity cost. If the opportunity cost of one good is lower in the home country than so will be the relative price.
As bananas cost $0.90 per kg, so, if a toothpaste is for $2.25, we are forgoing 2.25 kgs banana (2.25/0.9). Thus, the opportunity cost is 2.5 kg bananas which is equal to the relative price of bananas.
Therefore, relative price is an opportunity cost.
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Answer:
$75,000
This option has not been provided
Explanation:
Cash provided by operating activities
Net Operating Income
Add: Depreciation
Add: Decrease in current assets
Add: Increase in Current Liabilities
Using the information in question, we have
Cash Provided by operating activities = $57,000 + $5,000 + $4,000 + $9,000 = $75,000
None of the above is the right answer as the correct option is not available.
The Allowance for Doubtful Accounts T-account will have the write-offs of specific customers sales discounts and allowances on the credit side.
<h3>What is
Doubtful Accounts?</h3>
It lowers the value of an asset—in this case, the accounts receivable—the allowance for dubious accounts is referred to as a "contra asset."
The allowance, also known as a bad debt reserve, is management's projection of the amount of accounts receivable that customers will not pay.
Thus, option B is correct.
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Answer:
47,884.79 units of bonds
Explanation:
The units to be sold to arise $87.9 million will be equal to the
$87.9 million / divided by the bond price
The price of a bond is the present value (PV) of the future cash inflows expected from the bond discounted using the yield to maturity. These cash flows include interest payment and redemption value
The price of the bond can be calculated as follows:
Step 1
PV of interest payment
Semi-annual coupon rate = 5.92/2 = 2.96%
Interest payment =2.96%× 2,000= 59.2
Semi annual yield = 6.67%/2 = 3.335
PV of interest payment
= A ×(1- (1+r)^(-n))/r
= 59.2× (1-(1.03335)^(-2×20))/0.03335)
= 1,297.22
Step 2
PV of redemption value
PV = FV× (1+r)^(-n)
= 2,000 × (1+0.03335)^(-2× 20)
= 538.43
Step 3
Price of bond =
= 1297.22 + 538.43
= $1835.65
Step 4
Units to be used
= $87.9 million/ $1,835.65
= 47,884.79 units
