Answer:
$18.73 per stock
Explanation:
we need to calculate the company's terminal value and we can use the dividend growth model:
P₀ = Div₁ / (Re - g)
- Div₁ = $1.40 x (1 + 7%) = $1.498
- Re = 15%
- g = 7%
P₀ = $1.498 / (15% - 7%) = $1.498 / 8% = $18.725 ≈ $18.73 per stock
TACTICAL planning normally is performed by middle managers and typically has a one-year time frame.The correct answer is 2nd
Answer:
The answer is $160,000
Explanation:
Please refer to the attached file
Answer:
$570
Explanation:
The computation of the interest deduction is shown below:
= Interest paid × number of months ÷ (total number of months in a year)
= $3,420 × 2 months ÷ 12 months
= $570
The interest which is deducted in year 0 under the cash method of accounting is $570
And, the two months is calculated from the November 1 to December 31
We simply apply the interest paid formula.