common to this work. Note that common contexts are listed toward the top, and less common contexts are listed toward the bottom.
2 answers:
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Answer:
$190.64
Explanation:
Data provided in the question:
Current selling price of shares = $180 per share
Dividend paid = $10.18
Expected growth rate, g = 6% = 0.06
Required rate of return, r = 12% = 0.12
Now,
The dividend for the following year to the next year, D1 = $10.18 × (1 + g)ⁿ
here, n = 2 ( i.e the duration of next year and the following year )
thus,
D1 = $10.18 × (1 + 0.06)²
or
D1 = $11.438
Therefore,
Price of stock one year from now =
=
= 190.637 ≈ $190.64
Answer:
5,280 net income for the Year 3
Explanation:
This would be the situation:
17,400 revenue
11,000 expenses
gain/loss on sale of equipment
= net income year 3
To know the result of the sale of equipment we have to do
sales price - book value = gain/loss on sale of equipment
8900 - book value = gain/loss
We have to determinate the book value.
book value = adquisition cost - acumulated depreciation
The equipment cost 15,200 + 1,300 transportation cost = <u>16,500 Adquisition Cost</u>
acumulated depreciation = depreciation per year * 3 years
and depreciation per year is:
Here we have all the values, so we stop digging and start solving.
- <em>depreciation </em>= (16,500-5,700)/5 = 2,160
- <em>acumulated depreciation</em> = 2,160 * 3 = 6,480
- <em>book value</em> = 16,500 - 6,480 = 10,020
- <em>gain/loss </em>= 8,900 - 10,020 = -1,120 LOSS on sale of Equipment
net income = 17,400 - 11,000 - 1,120 = 5,280 net income for the Year 3