Answer:
Current Price of the Share Stock is $ 37.86 (D)
Explanation:
Using dividend valuation method with a constant growth rate assumption, share price is calculated as : Po =D1/(Ke-g).
Where; Po ⇒Market Value excluding any dividend currently payable
D1= Do(1+g)⇒Expected dividend in one year's time
Ke =Required rate of return by shareholders
g= Dividend growth rate
<u>Calculation</u>
D1 = 5(1+0.06)= $5.3
Hence, Po= 5.3/(0.20-0.06)
Po=$37.86
The share price is expected to reflect the future expected stream of income i.e dividends and capital gains ,discounted at an appropriate cost of capital.
Some of the assumptions of dividend valuation method include but not limited to the following:
- it assumed that investors act rationality and in the same way ;
-the dividend either show growth or no growth;
-the discount rate used exceeds the dividend growth rate.
Answer:
Total Asset $2,381,500
Net income $298,500
Explanation:
Overstated Inventory Leads to the overstatement of Total Assets value and Net Income. Ending Inventory Value is added in the total asset balance, overstatement in ending inventory causes overstatement in total assets.
The Ending Inventory is also used in the calculation of Cost of Goods sold. Overstated Inventory will cause understatement in Cost of Goods sold and overstatement in Net Income.
To rectify its effect we will deduct the overstated value of Inventory from Total Asset balance and Net Income value.
Total Asset = $2,407,000 - $25,500 = $2,381,500
Net Income = $324,000 - $25,500 = $298,500
There are a lot of ways that you can do to determine if an email address is a valid one or a fake one. You can either send a message to the email address, search it on the internet, or check it on some email verification websites. However, one of the best ways that you can do is that you should check the location of the email address. By doing this method, you will be able to determine where it came from which will prove that it is a valid email address.
Answer:
activity
Explanation:
by a central bank to give liquidity in its currency to a bank or a group of banks
There is some information in the table that is not needed in this problem. To find real per capita GDP in 1933 measured in 2008 prices, just multiply Nominal per capita GDP in 1933 by how many times expensive the prices are in 2008 than they were in 1933. The solution is $444 x 14 = $6,216. So, the answer is $6,216.
