Answer:
the company's cash flow from assets is - $42,880.
Explanation:
Cash flow from assets is also known as cash flow from investment activities.
Prepare <em>a section of cash flow from investing activities </em>to determine the cash flow from assets.
The only cash flow from investing activity is purchase price (cash outflow) of the assets of $42,880.
Answer:
The solution to the given problem is done in excel and an image of the solution is attached.
What is the bond's yield to maturity?
10.35%
What is the bond's yield to call?
10.13%
Answer:
John must invest $3719.4
Explanation:
It is given that John grandfather withdraws $120 per month for 3 year
So total month = 12 ×3 =36 months
Total amount withdrawn S = 36×120 = 4320
m = 12 times per year
Rate of interest i = 5 % = 0.05
We know that 
P = $3719.41
So john must invest $3719.4
Answer:
Consideration contract.
Explanation:
Consideration is basically the fact that Lewis never offered something in consideration to Tuan for his offer to pay the $3,000, this means that both parties need to have a benefit from the agreement and both should have a detriment, if only one party has a benefit that is considered a gift, and the law can´t force someone to gift something. This is why Tuan claim is correct and he isn´t forced to pay the $3,000 to Lewis.
Answer:
a). Future price of stock in five years=$98.97
b). The current stock price will not be affected by an increase of $1 in stock price, this is because increase in stock price is a function of the expected dividend growth rate and not the current stock price
Explanation:
a). Use the expression for calculating the required rate of return as to determine the expected dividend growth rate follows:
RRR=(EDP/SP)+DGR
where;
RRR=required rate of return
EDP=expected dividend payment
SP=share price
DGR=dividend growth rate
In our case:
RRR=10%=10/100=0.1
EDP=$1
SP=$65.88
DGR=y
replacing in the original expression;
0.1=(1/65.88)+y
y=0.1-(1/65.88)
y=0.0848
The expected dividend growth rate=8.48%
Future price of stock=Current price(1+DGR)^n
where;
Current price=$65.88
DGR=8.48%=8.48/100=0.0848
n=5 years
replacing;
Future price of stock=65.88(1+0.0848)^5
Future price of stock=$98.97
b). The current stock price will not be affected by an increase of $1 in stock price, this is because increase in stock price is a function of the expected dividend growth rate and not the current stock price
