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siniylev [52]
2 years ago
13

You are considering investing in the stock of PartyWagon, Inc. You expect a dividend of $1.25 next year, $1.31 in year 2, and $1

.38 in year 3. At the end of three years, you expect to be able to sell the stock for $65. If you can purchase the stock for $32, what rate of return do you expect to earn
Business
1 answer:
stich3 [128]2 years ago
6 0

Answer: 29.93%

Explanation:

You can use Excel to solve for this.

Bear in mind that when given a series of cashflows, the expected return is the Internal Rate of Return (IRR).

Initial investment = $32

First cashflow = $1.25

Second cashflow = $1.31

Third cashflow = $1.38 + $65 selling price = $66.38

IRR = 29.93%

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Answer:

At face value

Explanation:

Short term notes are always recorded at face value, and that applies to both interest and non-interest bearing short term notes.

Non-interest bearing long term notes must be recorded at their discounted value, i.e. you must discount the long term note' face value by the discount rate used by the company.

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Replay Sports Stores and SportsPower Products, Inc., enter into a contract for a sale of trampolines. SportsPower Products is a
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Answer: Automatically

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4 0
3 years ago
If government cuts taxes. A. after tax income should increase shifting AD to the right to a higher equilibrium level of output B
Vera_Pavlovna [14]

Answer:

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If the government cuts taxes, after tax income should decrease shifting AD to the left to a lower equilibrium level of output

I hope my answer helps you

8 0
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Explanation:

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