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damaskus [11]
3 years ago
9

You are considering acquiring a common share of Sahali Shopping Center Corporation that you would like to hold for 1 year. You e

xpect to receive both $1.25 in dividends and $35 from the sale of the share at the end of the year. The maximum price you would pay for a share today is _______ if you wanted to earn a 13% return. A) $32.08 B) $41.67 C) $31.54 D) $30.97
Business
2 answers:
Lelechka [254]3 years ago
7 0

Answer:

A. $32.08

Explanation:

Dividend=$1.25

Capital gain after one year=$35

Rate of return=13%

Formula for this will be;

Share price=(dividend+capital gain)/(1+rate of return)

Share price=(1.25+35)/(1+.13)

Share Price=36.25/1.13

Share price=32.08

VashaNatasha [74]3 years ago
4 0

Answer:

A) $32.08

Explanation:

to determine the maximum amount that we are willing to pay for the stock we can use the present value formula:

present value = future value / (1 + r)ⁿ

  • future value = $1.25 + $35 = $36.25
  • r = 13%
  • n = 1

present value = $36.25 / (1 + 13%)¹ = $36.25 / 1.13 = $32.079 ≈ $32.08

The present value is useful for determining the value of money in time, since $1 today is worth more than $1 tomorrow. It can be solved to determine the future value, interest rate or number of periods.

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A Lexus automobile priced in Japan for export at 3000000 at a time when the exchange rate is 100 now costs $30000 in the United
Bumek [7]

Answer:

  • what will be the new price in the United States

c $33750

Explanation:

Initial Price:

$3,000,000   PRICE  

100           USD Exchange  

$30,000     PRICE USD  

Updated Price:

$3,000,000   PRICE  

80              USD Exchange  

$37,500      PRICE USD  

As the pass through indicates that the exchange rate impact only a 50%, then the final price of the car it's defined as:

$7,500   Exchange Impact

0.50   Pass through  

$3,750   Final Exchange Impact

Initial Price : $30,000

Final Exchange Impact: $3,750

Final Price: $30,000 + $3,750 = $33,750

5 0
3 years ago
Why does actual group productivity never equal potential productivity?
Rama09 [41]

The answer to the question is (C) time is lost to coordinating and organizing group members.

Actual group productivity is never quite equal to the expected productivity mainly because there are other processes involved in the team that the team members must do in order to reach the set common goal. Some of these processes usually include determining how to do the work and distributing the assignments to the right person, as well as setting the roles in the team.

4 0
2 years ago
Now- a quick question. Assume at the beginning of Year2, Becker Company has a credit (positive) balance in the AOCI account of $
castortr0y [4]

Answer:

Becker Company

The amount that Becker will report as Accumulated Other Comprehensive Income on the Year 2 balance sheet is:

= $22,800.

Explanation:

a) Data and Calculations:

Year 2 Beginning balance:

Accumulated other comprehensive income (AOCI) = $10,800 credit

Year 2 reported net income = $653,000

Unrealized gain during Year 2 = $12,000

The Accumulated Other Comprehensive Income on the Year 2 balance sheet is:

Beginning balance $10,800

Unrealized gain        12,000

AOCI for Year 2 = $22,800

b) Becker's Accumulated Other Comprehensive Income includes unrealized gains and losses arising from some investments, pension plans, and hedging transactions.  These are usually reported in the equity section of the balance sheet and then netted off from the retained earnings.

7 0
2 years ago
Buyer Bill will receive a utilities bill for an estimated $300 at the end of the month. At closing, the seller has used an estim
liraira [26]

Answer:

b) a debit to the seller and credit to the buyer for $100

Explanation:

The portion of the utilities bill consumed by the seller is not to be borne by buyer Bill, he cannot be made to pay for what he did not consume, the correct treatment is for seller to bear the $100 consumed by him by way of the following entries

Debit  The seller $100

Credit  Buyer bill $100

This is in the spirit of fairness to both Buyer Bill and Seller.  

5 0
3 years ago
Ethical behavior begins with:.
Marizza181 [45]

Answer:

manners

Explanation:

4 0
2 years ago
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