Answer:
$31.9211
Explanation:
We discount the future two year dividends at the required rate of return
and solve for the present value of the infinite series of dividends growing at 3.6% with the dividend grow model:
PV 33.6
Then we discount this by the two years ahead of time these cashflow start and add them to get the PV of the stock which is their intrinsic market value
There are a lot of products in which packaging can add value to the customer and contribute largely to the buying process. A common example used for this is the "Share a Coke with..." campaign. When you find a Coke with your name on it, or someone you know, it adds value to the buying process and can be the sole reason for the purchase.
<span>Representative money is portable, durable, divisible, and acceptable.</span>
Answer:
Howdy Doody show in the 2018 income statement as income from this investment is $24225
Explanation:
given data
purchased = 15%
common stock = $58,000
net income 2018 = $15,000
net income 2019 = $58,000
dividend = $61,500
fair value = $73,000
to find out
How much Howdy Doody show in the 2018 income statement as income from this investment
solution
we know that net income to be reported as income by investment is the sum of income from dividend + unrealised gain
so here
unrealised gain = increase in value of stock that is
= $73,000 - $58,000 = $15000 .............1
and
income from dividend is = 15 % of $61,500
income from dividend = $9225 .................2
now add equation 1 and 2
Howdy doody show in 2018 income statement as income from this investment = Dividend revenue + Unrealized holding gain
income statement = $9225 + $15000
income statement = $24225
The stock price is $27.774.
The stock price can be determined using the Gordon constant dividend growth model. According to the model:
Stock price = DI / (r - g)
Where:
- D1 = dividend in the next period = 1 x ( 1.054) = 1.054
- r = required rate of return
- g = growth rate
1.054 / (9.2 - 5.4)
1.054 / 3.8
1.054 / 0.038
= $27.74
A similar question was answered here: brainly.com/question/14058705