Answer:
44
Explanation:
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
2.2 / 0.1 - 0.05 = 44
Because of those issued transaction, Edwards Co. must provide the disclosure about the stock issuance in the footnotes included with the December 31, Year 1 financial statements
A Footnote is a section for financial disclosure that shows how the numbers in the statement of financial position and cash flow statements were determined.
- Here, there are various stocks in Edward Company which were issued in the accounting year.
Hence, because of those issued transaction, Edwards Co. must provide the disclosure about the stock issuance in the footnotes included with the December 31, Year 1 financial statements
Read more about Footnote
<em>brainly.com/question/25306530</em>
Answer:
Total present value= $2,010.65
Explanation:
Giving the following information:
Cf1= 700
Cf2= 700
Cf3= 0
Cf4= 1,100
Discount rate= 9%
<u>To calculate the present value, we need to use the following formula on each cash flow:</u>
<u></u>
PV= FV/(1+i)^n
Cf1= 700/1.09= 642.20
Cf2= 700/1.09^2= 589.18
Cf3= 0
Cf4= 1,100/1.09^4= 779.27
Total present value= $2,010.65
Answer:
C) $5,000
Explanation:
Since the price of the stocks first rose to $50, the account's equity was $50,000.
The SMA balance was = ($50,000 x 1/2) - $20,000 = $,5000
The SMA balance acts like a stabilizer and cannot be taken away even if the price of the stocks fall slightly. The price of stocks must fall 25% in order for the SMA to be withdrawn.
The investor's equity decreased = equity - margin requirement = $39,000 - $20,000 = $19,000, but the amount that the investor can borrow (SMA balance) will remain the same at $5,000.