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Anni [7]
3 years ago
13

nine years ago a stock paid a $1.35 dividend since then it has split 3-for-1 two times. the current dividend is 0.15 if you have

required rate of return of 15% what is the most you can pay for this stock
Business
1 answer:
krek1111 [17]3 years ago
5 0

Answer: Price is $1

Explanation:

we can use the perpetuity formula to calculate the present value of a share, the present value of share represents the maximum amount that an investor would be willing to pay for a share

Dividends = 0.15 cents

required rate of return = 15%

Present value = 0.15 cents/0.15 = 1

Price =$1

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The net income reported on the income statement for the current year was $295,000. Depreciation recorded on fixed assets and amo
maksim [4K]

Answer:

The Net cash is 302.000

Explanation:

To get net cash flow using the indirect method we must make adjustments to the net income.

With the balance data,  we get the decrease or increase of the differents accounts.  

End Beginning Cash $ 50,000 $ 60,000  

Decrease in cash  -10000

Accounts receivable 112,000 108,000

Increase in accounts receivable 4000

Inventories 105,000 93,000

inventory increased 12000

Prepaid expenses 4,500 6,500

decreased Prepaid expenses -2000

Accounts payable (merchandise creditors) 75,000 89,000

accounts payable decreased -14000

It depends on the account if it is added or subtracted to net income. Below you will find the added account with a plus (+) and the subtracted ones with a minus (-)

Net income 295.000

Adjustment to reconcile the net income to cash

+ Depreciation expense 40.000

+ amortization of patents 5.000

- Decrease in cash (10.000)

- Increase in accounts receivable (4.000)

- inventory increased (12.000)

+  decreased Prepaid expenses  2.000

- accounts payable decreased (14.000)

 

Net cash 302.000

8 0
3 years ago
Which statement is not true about the minimum wage?
Kobotan [32]
Owners are not required to pay it to foreign works is incorrect option
5 0
3 years ago
Do you believe initiative is an important quality? Defend your answer.
Olegator [25]

Initiative is an important quality because it proves that you want to do your job or task successfully and independently. Lack of initiative shows laziness and/or low confidence in one's skills.

3 0
3 years ago
Read 2 more answers
Which of the following illustrates Forward Vertical Integration? a. Subway sandwich company buying a bakery to make the bread fo
Shalnov [3]

Answer:

a

Explanation:

Vertical integration is when a firm acquires a business further in its production chain. For example, a sandwich company purchasing a bakery

4 0
3 years ago
On December 31, 1991, Jet Co. received two $10,000 notes receivable from customers in exchange for services rendered. On both no
aleksklad [387]

Answer:

Hart Corp.'s note should be reported at $10,000

Maxx Inc.'s note should be reported at $7,883

Explanation:

Interest bearing notes that represent current accounts (due within one year) should be reported at face value. Hart Corp.'s note is due in nine months, so it should be reported at = $10,000

Maxx Inc.'s note must be recorded at present value because it is due in 5 years.

FV = $10,000 x 1.03⁵ = $11,592.74

now we must determine its present value using an 8% discount rate:

PV = $11,592.74 x 0.680 = $7,883

3 0
3 years ago
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