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zysi [14]
3 years ago
8

Cayman Boats plans to pay a $1.75 a share dividend at the end of each of the next 2 years. At the end of year 3, it will pay a f

inal liquidating dividend of $25 a share. After that, the company plans to close its doors permanently. What is the current value of this stock at a discount rate of 10 percent?
Business
1 answer:
katrin [286]3 years ago
4 0

Answer:

Explanation:

The current stock value is the most dependable indicator of a particular investment/security's present value. When it comes to bond, the current price is frequently quoted as 10% of par or face value.

The step by step diagram can be seen below:

Year               Cash flow $                C,P,F                  Present value $    

0                                     -                       1.000                              -  

1                                 1.75                         0.909                         1.59

2                                1.75                         0.826                         1.45

3                               25.00                      0.751                       18.78

 

Current stock value                                                       $ 21.82

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Answer:

d. Actual overhead is recorded to the overhead control account during the period.

Explanation:

Actual overhead -

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5 0
4 years ago
The following costs were incurred in September:
aleksley [76]

Answer:

Option (d) is correct.

Explanation:

Given that,

Direct materials = $44,200

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Conversion cost:

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= $57,000

Therefore, the conversion costs during the month totaled $57,000.

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4 years ago
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iVinArrow [24]

Answer:

$0

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3 years ago
What is prospecting?
IRINA_888 [86]

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B. Searching for potential buyers

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4 0
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