Answer:
71.64
Explanation:
For computing the current price, first, we have to compute the dividend for next five years which are shown below:
In year 1 = ($6 + $5) = $11
In year 2 = ($11 + $5) = $16
In year 3 = ($16 + $5) = $21
In year 4 = ($21 + $5) = $26
In year 5 = ($26 + $5) = $31
Now the current price equal to
= Year 1 dividend ÷ (1+ rate) ^ 1 + Year 2 dividend ÷ (1+ rate) ^ 2 + Year 3 dividend ÷ (1+ rate) ^ 3 + Year 4 dividend ÷ (1+ rate) ^ 4 + Year 5 dividend ÷ (1+ rate) ^ 5
= 11 ÷ 1.12 ^ 1 + 16 ÷ 1.12 ^ 2 + 21 ÷ 1.12 ^ 3 + 26 ÷ 1.12 ^ 4 + 31 ÷ 1.12 ^ 5
= $9.82 + $12.76 + $14.95 + $16.52 + $17.59
= $71.64
In a condition wherein a machine costing $148,000 and accumulates depreciation of $103,000 is sold for $59,000 cash, then the amount that should be reported as a source of cash under the cash flows from investing activities will be $59,000. Therefore, the option C holds true.
Cash flows from investing activities include the amount(s) spent by an organization over investing in different classes of assets with a view to pursue monetary returns. They include the amounts that are received or sent as cash at the time of purchase or sales of an asset of an organization.
Learn more about cash flows here:
brainly.com/question/15021405
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Complete question
g a machine with a cost of $148,000 and accumulated depreciation of $103,000 is sold for $59,000 cash. the amount that should be reported as a source of cash under cash flows from investing activities is:
a. Zero.
b. This is a financing activity.
c. $59,000.
d. $14,000.
e. This is an operating activity.
f. $45,000.
Answer:
40$
Explanation:
Each cheesecake is being sold for 8$, Austin is buying 5 for 80$
5 cheesecakes ×8$ = 40
Austin is giving 80$ for the 5 cheesecakes which total 40$ ( 80-40) = 40$ is his consumer surplus.
