Answer:
Price of stock =$ 15.31
Explanation:
<em>According to the dividend valuation model , the current price of a stock is the present value of the expected future dividends discounted at the required rate of return.</em>
<em>So we will discount the steams of dividend using the required rate of 11% as follows</em>:
Year Present Value(PV)
1 $1.65 × 1.11^(-1) = 1.486
2 $1.63× 1.11^(-2) == 1.322
3 $1.65× 1.11^(-3) = 1.2064
<em>Year 4 and beyond</em>
This will be done in two steps
Step 1 :
PV of dividend in year 3 = 1.70/0.11 = 15.45
Step 2
PV of dividend in year 0 =15.45× 1.11^(-3)= 11.30
Price of stock = 1.486+ 1.322 + 1.2064 + 11.30
=$ 15.31
Answer:
Equivalents units of production for materials: 23500 + (200×80%) = 23660
Equivalents units of production for conversion: 23500 + (200×40%) = 23580
Explanation:
Find the given attachment
A can do person is someone who never underestimates them selves. A can do person is able to overcome obstacles by having confidence in them selves
Answer:
The expected rate of return is 14.29%.
Explanation:
The re-arranged equation of DDM for Expected Rate of Return is given below:
Expected Rate = (Next Year Dividend / Current Stock Price) + Growth Rate
where
Next Year Dividend is Current Year Dividend * (1 + growth rate)
⇒ Next Year Dividend = 2.05 * (1 + 6.50%) = $2.18.
All the other values are given in the question. Simply put those values in the equation:
⇒ Expected Rate of Return = (2.18 /28) + .065 = .1429 = 14.29%.
Answer:
$48 million
Explanation:
In this scenario, we compare the values between book value including goodwill and the fair value of machinery, the difference would be the loss on impairment of the asset
In mathematically,
= Book value including goodwill - fair value
= $450 million - $402 million
= $48 million
All other information which is given is not relevant. Hence, ignored it