Answer: $53.94
Explanation:
Current share price is the present value of the dividends for the next 3 years and the terminal value in year 3.
Terminal value = D₄ / ( required return - growth rate)
= (2.35 * 1.22³ * 1.05) / (12 % - 5%)
= $64
D₁ = 2.35 * 1.22 = $2.867
D₂ = 2.867 * 1.22 = $3.49774
D₃ = 3.49774 * 1.22 = $4.2672428
Share price = (2.867 / (1 + 12%)) + (3.49774 / 1.12²) + (4.2672428 / 1.12³) + (64/1.12³)
= $53.94
So, the interest rate will be undefined, we'll name the variable n.
4n(3000) = 510
(The 4 in the equation represents 4 years)
Multiply:
12000n = 510
We'll divide 510 by 12000:
n = 0.0425
The annual interest rate is 4.25%
Answer:
The correct answer to the following question is that the Syrio's snowboards should debit the cost of goods sold account and credit the inventory account by $5000.
Explanation:
It is given that in the books , the inventory amounts to $24,000 but physically on $19,000 of inventory is present. Which means there is shortage in the inventory , that means the company would have to decrease the amount of inventory in the books. For that they will debit the cost of goods sold account and credit the inventory account by $5000 ( $24,000 - $19,000 ).
Answer: type z firm
Explanation: In simple words, type Z firm refers to the firm structure under which the management of the organisation focuses on factors like employment stability, high productivity and high satisfaction and morale of employees.
The firms employing such structure believes that employees are the most important resource and without their satisfaction operational effectiveness and stability cannot be achieved.
Answer:
a.$ 2,367.36
b.$ 3,105.85
c.$ 3,642.48
Explanation:
The future value formula applicable in all the three cases is stated thus:
FV=PV*(1+r)^n
PV is the amount today which is $1000 in all cases
r is the rate of interest (i.e 9%,12% and 9%)
n is the time the amount is invested( i.e 10,10 and 15 years)
FV=1,000*(1+9%)^10=$ 2,367.36
FV=1000*(1+12%)^10=$ 3,105.85
FV=1000*(1+9%)^15=$ 3,642.48
