Consolidated Freightways is financing a new truck with a loan of $60,000 to be repaid in six annual end-of-year installments of
1 answer:
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Answer:
The answer is $15,656
Explanation:
Formular: P = D *
P represent estimated stock price or value = ?
D represent last dividend paid = $152
k represent discount rate = 0.04
g represent growth rate = 0.03
Using the fomular above; P = $152 *
P = $152 *
P = $152 * 103 = $15,656
:. The fundamental value of the stock market would be $15,656
Answer:
$173
Explanation:
The computation of the salvage value at the end of year 5 is given below:
Cost of the asset $1,200
Multiply with the depreciation rate 5.76%
Book value at the 5 year end = $69
Resale value $200
gain on sales $131
Multiply with the Capital gain 21%
tax on gain $27
After tax gain on salvage value $173 ($200 - $27)
