Answer:
Current value per share is $13.33
Explanation:
The two stage growth model of DDM can be used to calculate the price of the share today. The DDM values a stock based on the present value of the expected future dividends from the stock. The price of this stock under this model can be calculated as follows,
P0 = D0 * (1+g1) / (1+r) + [ (D0 * (1+g1) * (1+g2) / (r - g2)) / (1+r) ]
Where,
- g1 is the initial growth rate which is 20%
- g2 is the constant growth rate which is 5%
- r is the required rate of return
P0 = 1 * (1+0.2) / (1+0.14) + [ (1 * (1+0.2) * (1+0.05) / (0.14 - 0.05)) / (1+0.14) ]
P0 = $13.33
Answer:
A,)amount of goods and services produced from each unit of labor input.
Explanation:
Productivity can be regarded as the measure of efficiency in production. It can be calculated by dividing aggregate output by single input over a particular period of time. It should be noted that Productivity is the amount of goods and services produced from each unit of labor input.
Answer:
Dr land $278,000
Dr building $347,500
Dr equipment $556,000
Dr inventories $208,500
Cr cash $1,390,000
Explanation:
The total amount spent in acquiring the assets is $1,390,000 which needs to be shared between the assets acquired on the basis of individual values of the assets
Total of individual assets' values=$304000+$380000+ $608000+$228000=$ 1,520,000.00
Cost attributable to land:$304000/$1520000*$1,390,000=$ 278,000.00
Cost attributable to Building:$380000/$1520000*$1390000=$ 347,500.00
cost attributable to equipment=$608000/$1520000*$1390000=$556,000.00
cost attributable to inventories=$228000/$1520000*$1390000
=$208,500.00
Answer:
She will loss $10.8
Explanation:
Given:
- Strike price of $42.50
- Premium $1.35 per share
We need to understand a call option is a financial contract that give the option buyer the right, but not the obligation, to buy a stock
In the question the underlying stock is $40.30 and it is smaller than the strike price $42.50. So she will not exercise the call option to buy the stock with the price of $40.30. And she will loose the premium $1.35 per share =
8* $1.35 = $10.8
If she exercise the call option she will lost:
The premium and the exchange rate difference amount
= 8* $1.35 + 8*($42.50 - $40.30)
= $10.8 + $17.6
= $28.4
So she will not excerise the call option.
Hope it will find you well.
Answer:
c
Explanation:
so they know where it came from