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zubka84 [21]
3 years ago
12

Sparty Corporation has provided the following information for its most recent year of operation:

Business
1 answer:
Wewaii [24]3 years ago
7 0

Answer:

E. $40,600

Explanation:

Calculation for the amount of net income reported on Sparty's income statement

Revenue $97,000

Less: Operating Expenses $39,000

Profit Before Tax $58,000

(97,000-39,000)

Less Taxes $17,400

Net Income $40,600

($58,000-$17,400)

Therefore the amount of net income reported on Sparty's income statement will be $40,600

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Answer:

$29.71

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Value of Stock can be determine by Dividend Valuation method.

Dividend Valuation method is used to value the stock price of a company based on the dividend paid, its growth rate and rate of return. The price is determined by calculating present value of future dividend payment.

In this question the Dividend payment is $2, growth rate is 4% and required rate of return is 11%.

Formula for Valuation:

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