Answer:
current share price is $71.05
Explanation:
given data
grow at a rate = 20 percent
time = 3 year
growth rate falling off = 8 percent
dividend = $1.45
solution
we get here price of the stock in Year 3 that is 1 year before the constant dividend growth that is
P(3) = D(3) × (1 + g) ÷ (R - g) .............1
P(3) = D0 (1 + g1)³ × (1 + g2) ÷ (R - g)
P(3) = 
P(3) = $90.206
and
then price of the stock today is present value of first three dividends + present value of the Year 3 stock price
so price of the stock today is
P(0) = 
P(0) = $71.05
The supply of loanable funds would increase and interest rates would fall.
For instance, they may lower or do away with taxes on savings interest. More people would be motivated to cut back on their present levels of consumption and increase their savings as a result of the enhanced tax benefits associated with saving.
This will result in a rise in the amount of loanable money available (shift to the right.) The interest rate at equilibrium will decrease. People and businesses will have more motivation to borrow as the interest rate declines, pushing up the demand curve and increasing the equilibrium amount of borrowing and lending in the market.
Learn more about interest rates here:
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Answer:
C.) $10,000
Explanation:
Working capital is the net of current asset and current liabilities. it is a financial measure that gives insight into how liquid a company is.
Raw materials also known as Inventory and accounts payable are both current assets and current liabilities respectively hence, Incremental investment in working capital if the project is accepted
= $17,000 - $7,000
= $10,000
Answer:
The correct answer is: $12,000
Explanation:
uncollectible debt = 6% of net sales
= 6/100 × 200,000
= 0.06 × 200,000 = $12,000
Therefore, $12,000 will be removed (debited) from the bad debt expense because it is uncollectible, and it is added (credited) to the Allowance for Doubtful accounts as bad debt to be paid for in the bad debt reserve account.
Answer:
the correct answer is finances
