Answer:
Do = $2.00
D1= Do(1+g)1 = $2(1+0.1)1 = $2.20
D2= Do(1+g)2 = $2(1+0.1)2 = $2.42
PHASE 1
V1 = D1/1+ke + D2/(1+ke)2
V1 = 2.20/(1+0.11) + 2.42/(1+0.11)2
V1 = $1.9820 + $1.9641
V1 = $3.9461
PHASE 2
V2 = DN(1+g)/ (Ke-g )(1+k e)n V2 = $2.42(1+0.03)/(0.11-0.03)(1+0.11)2
V2 = $2.4926/$0.0649
V2 = $38.4068
The current stock price is calculated as follows:
Po = V1 + V2
Po = $3.9461 + $38.4068
Po = $42.35
Explanation: This question relates to valuation of shares with 2-phase growth model. The value of shares in the first phase will be determined by discounting the dividend for the 2 years by cost of equity. The dividends for year 1 and year 2 were obtained by subjecting the current dividend paid (Do) to growth rate.
Moreso, the value of shares for the second phase was calculated by considering the last dividend paid(D2) and then subject it to the new growth rate. The adjusted dividend was then capitalized at the appropriate discount rate of the company.
Answer:
a.$0
Explanation:
Adjusted basis is the cost of a property and other related costs incurred in acquiring, maintaining, or upgrading the property.
Fair value represent the worth of a property. It is the amount that one should expect to fetch from the market if they were to sell the property.
The fair value or the worth for Mateo's rental house is $200,000. He obtains another rental house with a fair value of $180,000 and cash $20,000.
He exchanged property worth $200,000 for $200,000
Answer: "I. Many assets are measured at their historical cost rather than amounts for which the assets could be sold." explains why a company’s book value as reported in the balance sheet may not equal the company’s market value.
Explanation: Normally non-current assets (fixed assets) are valued at their historical acquisition cost, therefore the difference between the market value and the book value of a company occurs
Answer:
The answer is Planning ahead.
Did some research :)
Planning your day ahead is the first and most crucial step towards effective time management. Because each hour you spend planning saves you 10 hours of doing. So, instead of jumping into your workday with no clear vision, devote some time to time management: think ahead of the activities you need to engage in.
