Answer:
$64.76
Explanation:
The current share price can be determined by calculating the present value of the dividend
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow from year 1 to 13 = 9.45
I = 10.7
PV = 64.76
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
The correct answer is
<span>No, like all resources, supply and demand also affect how much a worker is paid.
For example, a worker doing the same computer job might be paid more in New York than in other places: this has to do with the fact that the demand and supply (in form of workers ready to work in NY for a certain wage) are different in those two places</span>
Answer:
c. value of all final goods and services produced within a country in a given period of time.
Explanation:
GDP is the value of all final goods and services produced within a country in a given period of time.
GDP = Consumption + Investment + Government Spending + Net Exports
GNP is the value of all final goods and services produced by the citizens of a country, regardless of where they are living, in a given period of time.
Answer: See explanation
Explanation:
a. The company's total book value of debt will be:
= Value of debt + Value of zero coupon bonds
= $70 million + $100 million
= $170 million
b. The market value will be:
= Quoted price × Par value
= ($70 × 1.08) + ($100 × 0.61)
= $75.6 + $61
= $136.6 million
c. The aftertax cost of debt will be:
= (1 - Tax rate) × Pre tax cost of debt
= (1 - 35%) × 5.7%
= 65% × 5.7%
= 3.7%
