The value of current stock price is equal to $57.93
<u>Explanation:</u>
Given dividend = $20 per year
The calculation of current stock price is as follows:
The Stock price at the beginning of 20th year is equal to = $20 divided by 8 percent = 250
Current stock price ( present value ) = ![\mathrm{FV} /(1+\mathrm{r})^{\wedge} \mathrm{n}](https://tex.z-dn.net/?f=%5Cmathrm%7BFV%7D%20%2F%281%2B%5Cmathrm%7Br%7D%29%5E%7B%5Cwedge%7D%20%5Cmathrm%7Bn%7D)
![=\$ 250 /(1+0.08) \wedge 19](https://tex.z-dn.net/?f=%3D%5C%24%20250%20%2F%281%2B0.08%29%20%5Cwedge%2019)
After calculating, we get, 57.92801
Therefore, the value of current stock price is equal to $57.93 (rounded off to 2 decimal places).
Answer:long term capital loss
Explanation:
The options to the question are:
a. short term capital gain
b. short term capital loss
c. long term capital gain
d. long term capital loss
LEAP options is an acronym for Long-term Equity Anticipation. It is an option contract which is said to expire at least a year from the purchase date. It should be noted that they are more affordable than stocks due to the fact that they are typically offered at an option contract price.
A customer buys an equity LEAP contract on the first day that the option starts trading. If the contract expires "out the money," the customer will have a long term capital loss.
Answer: $17,000,000
Explanation:
Investing Activities in the Cash Flow Statement refers to any cash inflows or outflow that is related to investments as well as the fixed assets and securities of other companies and patents.
In the above question the following are considered investment activities,
Sale of investment and Land
Purchase of Equipment and Patents.
Net Cash = ( Cash Inflows) - (Cash Outflows)
Net Cash = ( 40 million (investment sale) + 16 million ( land sale) ) - ( 26 million (equipment purchase) + 13 million (patent purchase) )
Net Cash = 56,000,000 - 39,000,000
Net Cash = $17,000,000
Net cash flows from investing activities is $17,000,000
The consulting company has an experienced team that can offer value to a specific set of customers—manufacturers with a need to reduce cost
The correct answer to this open question is the following.
Although there are no options attached, we can answer the following.
The term in strategic management theory related to managerial motive defines a manager's actions when those actions shape the firm's strategies to serve the manager's interests rather than to maximize long-term shareholder value is: "Egotism."
Egotism is one of the terrible mistakes a manager can make in the corporation. When a manager is egotistic, he/she is first and foremost interested in his own benefits, and this is an action contrary to the mission, vision, and philosophy or the organization,
A good manager is always going to look for the very best of the group, the team members, instead of its personal gains. People will follow a manager -or better said- a leader whose main concern is the team, not the individual.