Answer:
g = 0.05229 or 5.229% rounded off to 5.23%
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D1 / (r - g)
Where,
- D1 is dividend in year 1 or the next dividend
- r is the required rate of return
Plugging in the available values for P0, D1 and r, we can calculate the value of g.
82 = 4.65 / (0.109 - g)
82 * (0.109 - g) = 4.65
8.938 - 82g = 4.65
8.938 - 4.65 = 82g
4.288 = 82g
g = 4.288 / 82
g = 0.05229 or 5.229% rounded off to 5.23%
Answer:
$5572500
Explanation:
consolidated cost of goods sold for 2020 would be:
consolidated cost of goods sold = ( total of goods sold by bought company ) - ( intra-entity transfer ) + ( ending unrealized gross profit ) - ( beginning unrealized gross profit )
= ( 5400000 + 1200000 ) - ( 1000000 )+(1000000*20%)*20% - {(650000*15%)*(450000/650000)}
= 6600000 - 1040000 - ( 97500 * 45/65 )
= $5572500
Please give more information!!!
Answer:
The euro return to investing directly in euros is 180 5% 10% 360 = × ÷ , so the euros available in 180 days is EUR10,000,000 × 1.05 = EUR10,500,000. Alternatively, the EUR10,000,000 can be converted into Swiss francs at the spot rate of EUR1.1960/CHF. The Swiss francs purchased would equal EUR10,000,000 / EUR1.1960/CHF = CHF8,361,204. This amount of Swiss francs can be invested to provide a 180 4% 8% 360 = × ÷ return over the next 180 days. Hence, interest plus principal on the Swiss francs is CHF8,361,204 × 1.04 = CHF8,695,652. If we sell this amount of Swiss francs forward for euros at the 180-day forward rate of EUR1.2024/CHF, we get a euro
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return of CHF8,695,652 ×EUR1.2024/CHF = EUR10,455,652. This is less than the return from investing directly in euros.If these were the actual market prices, you should expect investors to do covered interest arbitrages. Investors would borrow Swiss francs, which would tend to drive the CHF interest rate up; they would sell the Swiss francs for euros in the spot foreign exchange market, which would tend to lower the spot rate of EUR/CHF; they would deposit euros.
Explanation:
