1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Blababa [14]
3 years ago
10

Alpha Wood Interiors announced that it is going out of business. As of today, no more regular dividends will be paid. The firm w

ill, however, pay two liquidating dividends. The first will be paid one year from now in the amount of $17 a share. The second and final payment will be paid two years from now at an estimated $32 a share. What is the value of this stock today at a discount rate of 6 percent
Business
1 answer:
xz_007 [3.2K]3 years ago
4 0

Answer:

$44.52

Explanation:

The value of the stock today can be determined by finding the present value of the liquidating dividends

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = 17

Cash flow in year 1 = 32

I = 6%

PV = $44.52

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  

You might be interested in
What are debit memoranda?
Kazeer [188]

Answer:

I believe the answer is reductions

Explanation:

The adjustments made to the account reduce the funds in the account but are made for specific purposes and used only for adjustments outside of any normal debits.

7 0
3 years ago
In a _______ organization lower-level managers are empowered to make decisions which can ________ motivation and job satisfactio
cupoosta [38]

Answer:

The correct answer is B

Explanation:

Decentralized is the process in which the power, functions are distributed or dispersed from the central location or authority to the lower level of the management.

So, in a organization or company which is decentralized where lower level managers are empowered for taking a decision leads to increase in the motivation as well as the job satisfaction of the employees.

3 0
3 years ago
Jackson Implements, Inc. uses straight-line depreciation for an item of equipment that cost $135,000, had a salvage value of $15
ch4aika [34]

Answer:

the depreciation that should be charged over the useful life each year is $20,000

Explanation:

The computation of the depreciation expense using the straight line method is shown below:

= (Purchase cost of an equipment - residual value) ÷ (useful life)

= ($135,000 - $15,000) ÷ 6 years

= $120,000 ÷ 6 years

= $20,000

hence, the depreciation that should be charged over the useful life each year is $20,000

3 0
3 years ago
The interest rate on a 10-year corporate bond for a company with AA rating will be higher than for a 10-year bond for a company
Alex_Xolod [135]

Answer:

The interest rate on a 10-year corporate bond for a company with AA rating will be higher than for a 10-year bond for a company with a BBB- rating.

True

5 0
4 years ago
Ai​ Lun, a management trainee at a large New Yorkdashbased ​bank, is trying to estimate the real rate of return expected by inve
QveST [7]

Answer:

Ai​ Lun estimate that  real rate would be 1%

Explanation:

The Formula for the Real Rate of Return is

Real rate of return =Nominal interest rate - Inflation rate

In this case ,

Nominal interest rate =3%

Inflation rate  is given by the rising of the consumer prices =2%

So,  

Real rate of return =3% - 2%

Real rate of return=1%

5 0
3 years ago
Other questions:
  • Which of the following is NOT true about organizational processes? Select one: a. They are only found at the top hierarchy level
    11·1 answer
  • Wood Carving Corporation manufactures three products. Because of a recent lack of skillled wood carvers, the corporation has had
    7·1 answer
  • Effective product promotion requires that everyone who creates and manages promotional messages have free access to information
    15·1 answer
  • Which of the following tasks would be very difficult using only a keyboard and text?
    7·2 answers
  • During the Great Recession, a major financial crisis followed the collapse of housing prices, which led to ____. Multiple Choice
    5·2 answers
  • The Bloom Company issued stock for $51,500 cash on January 20, 2011. During 2011, the company recorded revenue on account of $18
    11·1 answer
  • Costs of Acquiring Fixed Assets
    9·2 answers
  • Marigold Corporation had net sales of $2,423,800 and interest revenue of $36,500 during 2020. Expenses for 2020 were cost of goo
    11·1 answer
  • An environmental service employee of the hospital was called to the vascular surgery floor to clean the floor where a bag of pot
    7·1 answer
  • Tradable pollution permits are a:________.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!