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frez [133]
3 years ago
14

An investor has examined Home Depot stock and makes the following predictions for the future: YEAR 1 2 3 4 DIVIDEND $1.31 $1.58

$1.54 $1.56 The investor believes the selling price in four years will be $76.25. If the investor wants a 18.00% return to hold the stock, what intrinsic value does the investor put on Home Depot today
Business
1 answer:
Murrr4er [49]3 years ago
7 0

Answer: $43.32

Explanation:

The Intrinsic value of Home Depot Stock will be the present value of all the future cashflows from the stock.

Discounting with a rate of 18%, the intrinsic value is;

= 1.31/ ( 1 + 18%) + 1.58 / ( 1 + 18%)² + 1.54/ ( 1 + 18%)³ + 1.56 ( 1 + 18%) ⁴ + 76.25 / ( 1 + 18%) ⁴

= 1.11 + 1.1347 + 0.937 + 0.8046 + 39.3289

= 43.3152

= $43.32

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Answer:

D. financial accounting information.

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Financial reporting can be defined as the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors.

Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP). These accounting informations are prepared and made available for investors and other external agencies. Examples of financial statements includes Balance sheet, cash-flow and income statement.

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Hence, Connie is examining the financial accounting information.

4 0
3 years ago
Carlos has a small fashion company. He has been in business for a little over a year and the company looks like it is going to d
Vika [28.1K]

Answer: A.Venture capital firm

Explanation:

Carlos's company is a new business. One with growth potential and less than a year under it's belt and yet it has done some work with Calvin Klein. He now needs capital to continue the momentum and there is a specialized finance vehicle for people like him, Venture Capitalism.

Venture Capitalism refers to Venture Capital firms investing funds in growing or starting businesses. They have a high risk appetite which enables them to go into business with new firms. The key criteria is that there MUST be high Growth Potential.

Their strategy is simple, they invest in a new company in exchange of a certain amount of ownership of the business and then 4-6 years later exit the company when they are bought out.

Carlos's business is growing and has huge potential, if he doesn't mind sharing some of his ownership, Venture Capitalism is the best way to go.

4 0
3 years ago
Read 2 more answers
Mrs. Jones owns stock from which she received $3,000 in cash dividends. Mr. Jones owns stock from which he received $400 in cash
Nookie1986 [14]

Answer:

$3,400

Explanation:

Calculation for How much of the cash dividends received are Mr. and Mrs. Jones liable for

Cash dividends received=Cash Dividend+ Cash Dividend

Cash dividends received=$3,000+$400

Cash dividends received=$3,400

Therefore the amount of the cash dividends received are Mr. and Mrs. Jones liable for when filing their joint return is $3,400 reason been that Cash dividends received by a person or an individual are totally taxable which is why the total amount of $3,400 was liable for taxes.

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If the primary key of the workshop offerings table contains the primary key for both the workshop table and account table, there
makkiz [27]
<span>If the primary key of the workshop offerings table contains the primary key for both the workshop table and account table, there is a many-to-many relationship between accounts and workshops.
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matrenka [14]

Answer:

no

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no

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