Answer:
The correct answer is the option A: the company's present business offer attractive growth opportunities and can be counted on to create economic value for shareholders.
Explanation:
To begin with, the fact that a company faces the dilemma between continue with the current business lineup or change it in order to begin producing a new one by starting from zero then a lot of variables must be taken care of and considered, that is, that at the moment of making the final decision the managers must understand the opportunity costs that can affect the organization and moreover the benefits that the actual lineup makes. That is why, that at the time of sticking with the current business lineup it makes sense to continue with the current one when the company's present business offer attractive growth opportunities and can be counted on to create economic value for shareholders.
Answer:
B) It is reported on the income statement when it pertains to short term investments
Explanation:
Unrealised loss is defined as a reduction in the value of an asset that is held by an investor rather than selling it and realising a loss.
Unrealised loss is also called paper loss. This loss is not realised until the asset is sold.
Unrealised losses are not usually recorded on the income statement unless they intend to be sold in a short time.
When a security is to be sold in the short run it is called a trading security. Trading securities are represented in the income statement as they can increase or reduce income
The option for saving money which typically offers the most liquidity is D. a basic savings account.
Liquidity refers to the fact that you can withdraw your money anytime you want.
Answer:
Price = $8.92
Explanation:
Dividend from yr1 to yr3 will be multiplied by 2 since it doubles per year;
D1 = $0.15*2 = $0.30
D2 = $0.30 *2 = $0.60
D3 = $0.60 *2 = $1.20
D4 (onwards) = $1.50
Next, find the present value (PV) of each dividend;
PV(D1) = 0.30/(1.138) = 0.2636
PV (D2) = 0.60/(1.138²)= 0.4633
PV(D3 ) = 1.20/ (1.138³) = 0.8142
PV(D4 onwards) = ![\frac{[\frac{1.50}{0.138} ]}{1.138^{3} }](https://tex.z-dn.net/?f=%5Cfrac%7B%5B%5Cfrac%7B1.50%7D%7B0.138%7D%20%5D%7D%7B1.138%5E%7B3%7D%20%7D)
= 7.3754
To find the price of the stock today, sum up present values above;
= 0.2636 + 0.4633 + 0.8142 + 7.3754
Price = $8.92
Answer:
The Bond's Current yield = 4.95%
Explanation:
Annual coupon = Value of Bond * Annual Coupon rate
Annual coupon = $1000 * 4.8%
Annual coupon =$48
The Bond Current yield =Annual coupon / Current price
The Bond Current yield = $48 / $970
The Bond Current yield = 0.049485
The Bond Current yield = 4.9485
The Bond Current yield = 4.95%
