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katen-ka-za [31]
3 years ago
14

If earnings are expected to grow at a constant rate over time of 0.03 and investors' rate of discount is constant at 0.04, and i

f earnings last year were $152, then the fundamental value of the stock market would be_______
Business
1 answer:
Usimov [2.4K]3 years ago
7 0

Answer:

The answer is $15,656

Explanation:

Formular: P = D * \frac{1 + g}{k - g}

P represent estimated stock price or value = ?

D represent last dividend paid = $152

k represent discount rate = 0.04

g represent growth rate = 0.03

Using the fomular above; P = $152 * \frac{1 + 0.03}{0.04 - 0.03}

P = $152 * \frac{1.03}{0.01}

P = $152 * 103 = $15,656

:. The fundamental value of the stock market would be $15,656

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ivanzaharov [21]

Answer:

$205,200

Explanation:

              Calculation of Pension Expense

Service Cost                                         $198,000

Interest cost                                          $33,000

Expected return on the plan assets    <u>($25,800)</u> (258000*10%)

Pension Expense                                  <u>$205,200</u>

So therefore, the pension expense for the year is $205,200.

4 0
2 years ago
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Answer:

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Explanation:

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3 0
2 years ago
Global Company sold merchandise to Montana Industries for cash, $3,450. The cost of merchandise sold was $1,850. Global Company
postnew [5]

Explanation:

The journal entry is as follows:

Sales A/c Dr $900

    To Customer refund payable A/c $900

(Being the refund is recorded)

For recording this given entry, we debited the sales account and credited the customer refund payable account so that the proper positing could be done. Both the accounts are recorded at $900

7 0
2 years ago
If I am convinced that my own neighborhood is safer than it used to be, but that the crime rate in my society is at an all-time
Vlada [557]

Answer:

A) Probability neglect

Explanation:

You probably have lived there so long that you neglect to see what the true crime is, and you honestly could care less if its at it all time high

3 0
2 years ago
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The production plant for Ace Manufacturing has been located in the same place for over 100 years. It has just completed its new
Reptile [31]

Answer:

True

Explanation:

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