Answer:
$26.30
Explanation:
Calculation to determine the investor's valuation of this stock
Using this formula
Investor's valuation of the stock = [Dividend / (1 + rate)] + [Selling price / (1 + rate)]
Let plug in the formula
Investor's valuation of the stock = [$0.24 / (1 + 0.15)] + [$30 / (1 + 0.15)]
Investor's valuation of the stock = $0.21 + $26.09
Investor's valuation of the stock = $26.30
Therefore the investor's valuation of this stock will be $26.30
Answer:
Internal transfer benefits the company but the division managers cannot agree on a price.
Explanation:
Based on the scenario been described in the question, the situation when the top managers can intervene, it is when internal transfer will benefit the company, but the division managers cannot come into a unanimous agreement, in this case, it will make the top managers to step in making and help in the decision of pricing for them to resolve the conflict of agreeing on price.
Answer:
Yield to Maturity = 0.0493 or 4.93%
Current Yield = 0.0518 or 5.18%
Explanation:
Assuming that the face value of the bond is $1000
The yield to maturity can be calculated using the following formula,
Yield To Maturity = [C + (F - P) / n] / (F + P) / 2
Where,
C = Coupon Payment
F = Face Value
P = Present value
N = Number of years to maturity
The coupon payment here is 1000 * 0.062 = $62
The Yield to Maturity = [62 + (1000 - 1196) / 25] / (1000 - 1196) / 2
Yield to Maturity = 0.0493 or 4.93%
Current Yield is simply calculated by dividing the coupon payment by the preset value of a bond.
Current Yield = 62 / 1196 = 0.0518 or 5.18%
Answer:
$10,700
Explanation:
Operating cash flow is computed as;
= Net income + non cash expenses - outlay in working capital
First, we'll determine the net income
Net income = Sales $44,800 - cost $27,500 depreciation expense $2,650 - Taxes $4,500
Net income = $10,150
Operating cash flow = $10,150 + $2,650 - $2,100 = $10,700
