Answer:
$30.00
Explanation:
The price of the stock can be derived from the stock theoretical price formula given and explained below:
stock price=expected dividend/(market return-growth rate)
expected dividend=dividend paid today*(1+growth rate)
expected dividend=$2*(1+5%)
expected dividend=$2.10
market rate of return=12%
growth rate=5%
stock price=$2.10/(12%-5%)
stock price=$2.10/7%
stock price=$30.00
pv = previous value =2,000
r =rate= .05/4
n= number of periods = 5*4=20
This is the formula.
I think that its either A or D! hope this helps
Answer:
Unitary prime cost= $170.24
Explanation:
Giving the following information:
Last month, direct materials (electronic components, etc.) costing $550,000 were put into production.
Direct labor= $880,000.
Manufacturing overhead equaled $495,000
The company manufactured 8,400 television sets during the month.
Unitary prime cost= (direct material + direct labor)/number of units
Unitary prime cost= (550000 + 880000)/8400= $170.24
Answer:
$2681.30 approx.
Explanation:
The first annuity is case of annuity due
For the first annuity, $2500 + 2500 × cumulative present value factor at 7.25% for 14 years
= $2500 + 8.6158 × 2500
= $24040 approx
The second annuity is the case of deferred annuity wherein payments are made at the end of the year.
Payment amount of second annuity = Present Value of first annuity ÷ cumulative present value annuity factor at 7.25% for 15 years
This will be equal to 24,040/8.9658 = $2681.30 approx.
