Answer: The price that would be expected for Coolibah's stock to sell for at the end of three years is $28.87
Explanation: It should be noted that to calculate a price that would be expected in Coolibah's stock to sell for at the end of three years can be calculated using financial calculator:
A) Using a financial calculator, PV = -$22.60 , PMT = $1.20, n = 6, I = 18% / 2;
calculate FV = $28.87 .
Answer:
The maximum amount that should be paid for one share of this stock today is $15.29
Explanation:
The price of a stock which pays a constant dividend forever can be calculated using the zero dividend growth model of the Dividend Discount Model (DDM) approach. The DDM values a stock based on the present value of the expected future dividends from the stock discounted using the required rate of return on stock.
The formula for price under zero growth model of DDM is,
Price today (P0) = Dividend / required rate of return
P0 = 2.4 / 0.1570
P0 = $15.286 rounded off to $15.29
Answer:
b. building 28,000
notes payable 28,000
Explanation:
jaye company purchased a new building by signing a note for $28,000. the entry to record the transaction is:
a. building 28,000
cash 28,000
b. building 28,000
notes payable 28,000
c. note payable 28,000
cash 28,000
d. cash 28,000
note payable 28,000
Jaye's company is signing a note of 28,000 and purchasing a building of 28,000
The entry to record Jaye company's transaction is building 28,000, notes payable 28,000
The transaction will not be recorded in
Building:28,000, cash:28,000.
Note payable:28,00, cash:28,000
Cash:28,000, note payable:28,000
Therefore the correct answer is
b. building 28,000
notes payable 28,000
Answer:
The answer is $2.8
Explanation:
Earnings Per Share(EPS) is the part of company's earnings that goes to each common share owner.
It is calculated as net income minus preferred dividend(if any) / weighted-average common shares outstanding.
Net income equals $728,000
Weighted-average common shares outstanding equals 260,000 shares
Therefore, basic earning per share is
$728,000 /260,000
= $2.8
