Answer:
Annual depreciation= $16,000
Explanation:
Giving the following information:
Purchase price= $44,000
Useful life= 5 years
Salvage value= $4,000
<u>To calculate the depreciation expense under the double-declining balance, we need to use the following formula:</u>
<u></u>
Annual depreciation= 2*[(book value)/estimated life (years)]
Annual depreciation= 2*[(44,000 - 4,000) / 5]
Annual depreciation= 16,000
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Answer:
$3.68 per share
Explanation:
Lisa Lasher purchases 400 shares of stock on margin at the price of $21 per share
The margin requirement is 50%
= 50/100
= 0.5
The first step is to calculate the amount of money invested
= $21×400×0.5
= $4,200
The amount in which the stock must rise to inorder for Lisa to realize a 35% return on invested funds can be calculated as follows
= 35/100×4,200
= 0.35×4,200
= $1,470
$1470/400 shares
= $3.68 per share
Hence the stock must rise to $3.68 per share for Lisa to realize a 35% return on her invested funds
True I’m pretty sure that’s right
Answer:
Current dividend paid (Do) = $1.35
Growth rate (g) = 11% = 0.11
Cost of equity (ke) = 24% = 0.24
Po = Do<u>(1 + g)</u>
Ke - g
Po = $1.35<u>(1 + 0.11)</u>
0.24 - 0.11
Po = <u>$1.4985</u>
0.13
Po = $11.53
Explanation:
The current market price of the stock is a function of current dividend paid, subject to growth rate, divided by the current market price of the stock.