Answer:
<em>Value of the stock in four years: $22.69</em>
Explanation:
We use the gordon model to sovle for the intrinsic value (fair value) of the share according to their future cash flow:
the formula uses next year dividends so we need to calcualte:
2.70 x 1.024 = 2,7648
Now we can solve for the value of the stock:
g = 0.024
r = 0.158
Present Value = 20.63283582
That is the value of the stock today.
Now we apply the grow factor for the next four year:
Principal 20.63283582
time 4.00
rate 0.02400
<em>Amount 22.69</em>
Answer:
$550,000
Explanation:
The computation of the cost of the land is shown below:
= Cash paid + note payable amount + legal fees incurred + sales commission charged + surveying fees + appraisal fee
= $100,000 + $400,000 + $19,000 + $25,000 + $1,000 + $5,000
= $550,000
For computing the cost of the land we added all the cost given in the question as it is related to the land
Managers business motivate locatione mployees to emulate
Answer:
Loss on sale = $38,000
Explanation:
The computation of sale of tractor is shown below:-
Total depreciation = ($180,000 - $20,000) × (2,400 + 2,100) ÷ 10000
= $72,000
Net book value on January 1, 2021 = Tractor cost - Total depreciation
= $180,000 - $72,000
= $108,000
Loss on sale = Total depreciation - Net book value on January 1, 2021
= $70,000 - $108,000
= $38,000
Therefore for computing the sale of tractor we simply applied the above formula.
