Answer:
c) $25
Explanation:
<em>The value of a preferred stock is the present value of the constant dividend payable for the foreseeable future discounted at the required rate of return</em>
Price = Constant dividend/ required return
The constant dividend = Dividend rate × par value
Dividend as be given as $5 per share
requited return - 20%
So the price of the stock would be
Price = 5/0.2
= $25
Answer:
$29.83
Explanation:
This question requires application of dividend discount model, according to which current value of share is present value of dividends expected in future.
where V2 is the terminal value, present value of dividends growing at constant growth rate,
V2 = Div3 ÷ (r - g)
Div3 = $2.24 × (1 + 2.8%)
= $2.30272
V2 = $2.30272 ÷ (0.102 - 0.028)
= $2.30272 ÷ 0.074
= $31.12
= 2.36 + 1.84 + 25.63
= $29.83
Answer:
$28,000
Explanation:
Data provided in the question:
Cost of the building purchased = $140,000
Estimated salvage value = $8,000
Expected useful life = ten years
Now,
Annual rate of depreciation using the double-declining-balance method
= 2 × [ 100% ÷ (Useful life )]
= 2 × [ 100% ÷ 10 ]
= 2 × 10%
= 20% or 0.20
Therefore,
Depreciation expense for 20X1 = Cost of building × Rate of depreciation
= $140,000 × 0.20
= $28,000
More than likely they can help you find jobs
Answer:
$ 124,600
Explanation:
Given data:
Total livable area = 2,50 square foot
Area of the garage = 500 square foot
Base construction cost for livable area = $ 52 per square foot
Base construction cost for garage = $ 36 per square foot
Thus,
the cost for construction of total livable area = Area × per unit area construction cost
or
the cost for construction of total livable area = 2,050 × $ 52 = $ 106,600
and
cost for construction of total garage area = 500 × $ 36 = $ 18,000
hence,
the total cost for the reproduction of the new structure
= $ 106,600 + $ 18,000
or
= $ 124,600
