Answer:
$81.52
Explanation:
The current share price is the present value of future dividends as well as the present value of the terminal value of dividends beyond year 6 as shown thus:
Current dividend=$3.95
Year 1 dividend=$3.95*(1+5%)=$4.15
Year 2 dividend=$4.15*(1+5%)=$4.36
Year 3 dividend=$4.36*(1+5%)=$4.58
The required rate of return(discount rate) for the dividends in the FIRST 3 years above is 14%
Year 4 dividend=$4.58*(1+5%)=$4.81
Year 5 dividend=$4.81*(1+5%)=$5.05
Year 6 dividend=$5.05*(1+5%)=$5.30
The required rate of return(discount rate) for the dividends in the NEXT 3 years above is 12%
Terminal value of dividend=Year 6 dividend*(1+growth rate)/(rate of return-growth rate)
growth rate=5%
rate of return=10%(rate of return thereafter)
terminal value=$5.30*(1+5%)/(10%-5%)
terminal value=$111.30
current share price=$4.15/(1+14%)+$4.36/(1+14%)^2+$4.58/(1+14%)^3+$4.81/(1+12%)^4+$5.05/(1+12%)^5+$5.30/(1+12%)^6+$111.30/(1+10%)^6
current share price=$81.52
This can indicate fraud, duress, or undue influence.
In contracts, "consideration" is the things of value each side gives up in an exchange. So if one side gives $1 for a cup of coffee, that might be ok. Now, consider if the contract was to sell your entire house for $1! That would be a shockingly inadequate exchange because even the cheapest home is worth way more than $1.
In that case, the judge might look at <em><u>why</u></em> someone would be willing to give up so much for so little. Were they falsely told there home was worth nothing or maybe told that they would get $1 upfront and more later? That would be <u>fraud</u>. Were they told to sign the contract with a gun pointed at their head? That is an example of <u>duress</u>. Finally, did the person helping them with the contract have undue influence? If your boss, parent, or favorite celebrity advises you to do something that you don't want to do, but you worry about what they will thing if you don't, then you were a victim of their <u>undue influence. </u>
The answer to this question is Activity-Based Costing<span> (ABC)
</span>Activity-Based Costing<span> (ABC) is being done by assigning the manufacturing cost in a more structural and logical manner.
By doing this, The company will be able to provide a more accurate asessment on the cost that incurred by providing a certain product/services.</span>
Answer:
the total partner equity is $105,000
Explanation:
The computation of the total partner equity is shown below;
= Capital contributions × number of partners - withdrawn amount by the partners + total profit
= $50,000 × 2 - $5,000 - $7,500 + $17,500
= $105,000
hence, the total partner equity is $105,000
Therefore the correct option is B.
Answer:
Sales Revenue 1,218,000 1,218,000
Variable Cost 852,600 487,200
Contribution margin 365,400 730,800
Fixed Cost 292,320 657,720
Operating Income 73,080 73,080
Explanation:
Variable cost 852,600 / 42,000 units = 20.3 then - 8.7 for the decrease due to nex equipment = 11.6 Then 11.6 x 42,000 = 487,200
