Answer:
P0 = $33.25558633 rounded off to $33.26
Explanation:
The stock price today or the price per share today can be calculated using the discounted cash flow approach or the dividend discount model. The DDM values the stock based on the present value of the expected future dividends from the stock. In the given scenario, the price of the stock will be calculated as follows,
P0 = D1 / (1+r) + D2 / (1+r)^2 + .... + Dn / (1+r)^n +
[ (Dn * (1+G) / (r - G)) / (1+r)^n }
Where,
- D1, D2 and so on will be calculated by applying the appropriate growth rates to D0 of $1.85
- r is the required rate of return
- G is the sustainable or constant growth rate
P0 = 1.85 * (1+0.24) / (1+0.14) + 1.85 * (1+0.24) * (1+0.18) / (1+0.14)^2 +
1.85 * (1+0.24) * (1+0.18) * (1+0.12) / (1+0.14)^3 +
[ (1.85 * (1+0.24) * (1+0.18) * (1+0.12) * (1+0.06) / (0.14 - 0.06)) / (1+0.14)^3 ]
P0 = $33.25558633 rounded off to $33.26
Answer:
Demon Deacons Corporation
Adjusted Trial Balance:
Demon Deacons Corporation is presented below.
Accounts Debit Credit
Cash $ 9,400
Accounts Receivable 14,400
Prepaid Rent 4,320
Supplies 740
Deferred Revenue $ 1,800
Salaries Payable 700
Common Stock 11,000
Retained Earnings 5,400
Service Revenue 47,480
Salaries Expense 32,700
Rent Expense 2,160
Supplies Expense 2,660
$ 66,380 $ 66,380
Explanation:
a) Data and Calculations:
The December 31, 2021, unadjusted trial balance for
Demon Deacons Corporation is presented below.
Accounts Debit Credit
Cash $ 9,400
Accounts Receivable 14,400
Prepaid Rent 6,480
Supplies 3,400
Deferred Revenue $ 2,400
Common Stock 11,000
Retained Earnings 5,400
Service Revenue 46,880
Salaries Expense 32,000
$ 65,680 $ 65,680
Adjustments:
DR Rent Expense $2,160 CR Prepaid Rent $2,160
DR Deferred Revenue $600 CR Service Revenue $600
DR Salaries Expense $700 CR Salaries Payable $700
DR Supplies Expense $2,660 CR Supplies $2,660
Answer:
positive economic statement
Explanation:
positive economic statement are statements based on facts. they are objective, descriptive and measurable.
The information that smokers are liable to die young is based on extensive research on the effects of smoking on smokers
Answer:
Making bread
Explanation:
Lyta has to specialize in making bread. By specialization, it means that lyta should focus it's productive efforts on making bread, because from the question she clearly has an absolute advantage in making bread Since the question says she is more efficient in making bread compared to the other product. It means she can produce bread in larger quantities at same cost or she can produce same quantity of bread at lower cost.
Tragic flaw is a literary device that can be defined as a trait in a character leading to his downfall, and the character is often the hero of the literary piece. This trait could be the lack of self-knowledge, lack of judgment, and often it is hubris (pride).
