Answer:
Please find the complete question and its solution in the attached file.
Explanation:
Answer:
The current value of stock is $20.40
Explanation:
D3 = $0.75
The Growth rate for Year 4 & Year 5 is 70%. The experience after was constant growth rate (g) of 6%
D4 = $0.75 * 1.70 = $1.28
D5 = $1.28 * 1.70 = $2.18
D6 = $2.18 * 1.06 = $2.31
To get the Value of stock, r = 16%
P5 = D6 / (r - g)
P5 = $2.31 / (0.13 - 0.06)
P5 = $2.31 / 0.07
P5 = $33
P0 = $0.75/1.13^3 + $1.28/1.13^4 + $2.18/1.13^5 + $33/1.13^5
P0 = $0.75/1.4429 + $1.28/1.6305 + $2.18/1.8424 + $33/1.8424
P0 = $0.5198 + $0.7850 + $1.1832 + $17.9114
P0 = $20.3994
P0 = $20.40
So, current value of stock is $20.40
Answer:
The correct answer is letter "A": comparison.
Explanation:
Margaret is using a comparison method by ordering her subordinates from the best performer to the one with the worst score after the appraisal. Margaret is using their ratings to establish the order in the list since it is the most relevant information to be considered after the series of evaluations. It will also help Margaret to know how many employees need feedback so their performance can improve.
Answer:
a. 550,000
Explanation:
The gain on the asset is calculated by the sales proceeds minus the original cost of the asset.
In this question the home' initial cost is $200,000 and it is sold on $750,000. In absence of any unusual or hardship circumstances, the direct gains is $550,000 ( $750,000 - $200,000) as all the closing costs are paid by the buyer, so, Barney ans Betty should include the whole gain of $550,000 in the gross income.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.