Answer:
The price of the stock today is $16.83
Explanation:
The current price per share can be estimated using constant growth model of the DDM. The price per share can be calculated using the following formula,
P0 = D1 / r - g
To calculate the price today, we use the dividend expected for the next period. Thus, using the dividend that will be paid at t=11 or D11, we can calculate the price of the stock at t=10. We further need to discount this price using the required rate of return for 10 years to calculate the price of the stock today.
P10 = 6 * (1+0.04) / (0.14 - 0.04)
P10 = $62.4
The price of the stock today will be,
P0 = 62.4 / (1.14)^10
P0 = $16.83
Answer:
A. 18.00%
Explanation:
In this question, first we have to apply the return on investment formula so that the net income value could find out which is shown below:
Return on investment = Net Income ÷ Average Operating Assets × 100
28.8% = Net Income ÷ $259,000
So, the Net income would be
= $74,592
Now the margin would be
= Net income ÷ Sales × 100
= $74,592 ÷ $414,400 × 100
= 18%
Answer:
d. can be reinvested at higher rates of return.
Explanation:
Option d. can be reinvested at higher rates of return.
The interest rates on the portfolio is the yield that a person receives on his investment. This yield he gets periodically, therefore amount received can be used to generate further yields by reinvesting it into higher interest paying investments.
Answer:
To minimize central tendency bias, a manager should: define an accurate profile with both high and low points- c.
Answer:
The maximum deduction is $207,000.
Explanation:
As per MACRS depreciation table 5 years half year conversion depreciation rate for first year is 20% - 100%/5 = 20%
The maximum deduction is $1,035,000 * 20% = $207,000
