$51.22 is intrinsic value of this stock.
<h3>Intrinsic value of this stock</h3>
For computing the intrinsic value, first we have to determine the current year dividend and expected rate of return which is shown below:
The computation of the next year dividend is shown below:
= $3 + $3 × 3.8%
= $3 + 0.114
= $3.114
And, the expected rate of return would be
= Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 2.4% + 0.88 × (10.9% - 2.4%)
= 2.4% + 0.88 × 8.5%
= 2.4% + 7.48%
= 9.88%
Now the intrinsic value would be
= Next year dividend ÷ (Required rate of return - growth rate)
= $3.114 ÷ (9.88% - 3.8%)
= $3.114 ÷ 6.08%
= $51.22
To learn more about intrinsic value of this stock visit the link-
brainly.com/question/20216761
#SPJ4
Answer:
a.
The depreciable cost is $170500
b.
The depreciation rate is $3.1 per mile
c.
The depreciation expense for the year is $13640
Explanation:
a.
The depreciable cost is the cost of the asset that qualifies to be charged as depreciation expense over the estimated useful life of the asset. The depreciable cost is calculated as follows,
Depreciable cost = Cost - Residual Value
depreciable cost = 180000 - 9500 = $170500
b.
The depreciation rate under unit of activity method is the amount of depreciation that will be charged per unit of the asset usage.
The depreciation rate = Depreciable cost / estimated useful life in units of activity
The depreciation rate = 170500 / 55000 = $3.1 per mile
c.
The units of activity depreciation for the year can be calculated by multiplying the depreciation rate per unit by the activity for the year in unit terms.
Depreciation expense for the year = 3.1 * 4400 = $13640
Direct costs are easily measurable and are tangible
Answer:
A.
Explanation:
Meals, lodging, and incidental expenditures are only deductible if the taxpayer is away from home overnight while traveling.
Answer:
The correct answer is A
Explanation:
Marginal product is the term which is defined as the change in the output which results from employing a unit of the specific input.
For example, The change in the output of labor when the labor increase from four to five.
So, MPL (Marginal Product of Labor), is defined or described as the change or variation in output consequence from employing an additional or extra unit of labor.
Therefore, the MPL is the additional or change in sales revenue which results from one more pr additional worker or labor is hired.