The following selected transactions were completed by Interlocking Devices Co., a supplier of zippers for clothing: 20Y7 Dec. 7.
Received from Unitarian Clothing and Bags Co., on account, a $78,000, 60-day, 8% note dated December 7. Dec. 31. Recorded an adjusting entry for accrued interest on the note of December 7. Dec. 31. Recorded the closing entry for interest revenue. 20Y8 Feb. 5. Received payment of note and interest from Unitarian Clothing Journalize the entries to record the transactions.
1 answer:
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Answer:
D. $98.15
Explanation:
Price of stock formula;
Price today(P0) =
D0= Current dividend
g = growth rate
r = required return
Price =
= 3.762 /0.065
Price = 57.877
Price in 12 years (P12) = P0(1+g)
P12 = 57.877 *
P12 =$98.152
Therefore, price of stock in 12 years will be $98.15