Answer:
E) $1.47
Explanation:
Hi, first we need to estimate the value of all future dividends, since last dividend was $2 and it´s going to grow at -50% every year, for 3 years and then stop paying dividends, the cash flows that we need to bring to present value are.
D(1)= $2*(1-0.5)=$1
D(2)=$1*(1-0.5)=$0.50
D(3)=$0.50*(1-0.5)=$0.25
And no dividends from then on.
Now, we need to bring them to present value in order to find the pair market price of this share, that is:
So, the price of this share is $1.47, that is E)
Best of luck
Incentive pay is a collective term used to refer to various forms of pay linked to an employee's performance as an individual, group member, or organization member. incentive pay base pay merit pay hourly wage benefits
Answer:
$0.5 Million
Explanation:
The computation of change in profits is shown below:-
Rate-sensitive assets $30 million
Rate-sensitive liabilities $20 million
Gap = $30 million - $20 million
= $30 million - $20 million
= $10 million
x rise in percentage points = 5%
Change in profit = Gap × x rise in percentage points
= $10 × 5%
= $0.5 Million
Answer:
Activity 2= $11.15
Explanation:
Giving the following information:
Total Activity Activity Cost Pools Total Cost Product A Product B Total
Activity 2 $40,140 2,000 1,600 3,600
<u>To calculate the activity rate for Activity 2, we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Activity 2= 40,140 / 3,600
Activity 2= $11.15
Answer:
$975
Explanation:
Use the following formula to calculate the Corporation's Tax basis in the property received in exchange
Corporation's Tax basis = Tax basis of Property transferred + Gain recognized
Where
Tax basis of Property transferred = $750
Gain recognized = 975 - $750 = $225
Placing values in the formula
Corporation's Tax basis = $750 + $225
Corporation's Tax basis = $975