Answer:
7.56%
Explanation:
Calculation for the required return for Smiling Elephant
Using this formula
Required return =D/P0
Where,
D=$6.10
P0=$80.65
Let plug in the formula
Required return =$6.10/$80.65
Required return =0.0756×100
Required return =7.56%
Therefore the Required return for Smiling Elephant Inc will be 7.56%
Answer:
Inventory should be increased by $3,500
Explanation:
Calculation for What adjustment to inventory should be made under IAS 2 after this event
Adjustment to inventory under IAS 2= 13,000 - 9,000- 500
Adjustment to inventory under IAS 2 = $3,500 Increased
Based on the above calculation the adjustment to inventory that should be made under IAS 2 after this event is that Inventory should be increased by $3,500.
The Republican Party, commonly referred to as the GOP (abbreviation for Grand Old Party), is one of the two major contemporary political parties in the United States, the other being its historic rival the Democratic Party.
Answer:
a). The required rate of return=18%
b). The stock price after 1 year is expected to be $24.78
Explanation:
Derive the expression for calculating the required rate of return as follows:
RRR=(EDP/SP)+DGW
where;
RRR=required rate of return
EDP=expected dividend payment
SP=share price
DGW=dividend growth rate
In our case:
RRR=unknown
EDP=$2.50
SP=$21.00
DGW=6%=6/100=0.06
replacing in the original expression;
RRR=(2.5/21)+0.06
RRR=0.18 or 18%
b). The expression for calculating the future value of the stock is as follows:
F.V=C.V×(1+RR)^n
where;
F.V=future value of the stock after a year
C.V=current value of the stock
RR=required rate of return
n=number of years
In our case;
C.V=$21.00 a share
RR=18%=0.18
n=1
replacing;
FV=21×(1+0.18)^1
FV=$24.78
The stock price after 1 year is expected to be $24.78
