Answer:
Maximum Price per Share = $42.60
Explanation:
Using dividend discount model, we can calculate the price per share or the intrinsic value per share which is the fair value of a share based on the future cash flows expected from it by the investors.
We first calculate the dividends and then discount them by the required rate of return of 17%.
We start from D1 which is expected dividend next year and then calculate future dividends applying the growth rate and when the dividend growth becomes constant, we calculate the terminal value.
The dividends are,
- D3 = 3.7*(1.06^2) = $4.15732
- D4 = 3.7*(1.06^2) * (1.18) = $4.9056376
- D5 = 3.7*(1.06^2) * (1.18) * (1.09) = $5.347144984
To calculate Price today or the fair value today, we discount these by required rate of return and calculate the terminal value for year 5 where growth becomes constant.
P = 3.7/1.17 + 3.922/(1.17)^2 + 4.15732/(1.17)^3 + 4.9056376/(1.17)^4 + 5.347144984 / 0.17 - 0.09
P = $42.60486328 rounded off to $42.60
Thus, an investor requiring 17% return will pay a maximum of $42.60 / share
Answer:
Benton Island, Inc.
Operating Activities Section of the Statement of Cash Flows for the year ended December 31, 2018 (using the direct method):
Cash from customers $80,000
Cash to Suppliers -85,000
Cash to Employees -50,000
Income Taxes -11,000
Net Cash flow from Operating -66,000
Explanation:
1. The operating activities section shows inflows and outflows of cash resulting from a company's key operating activities. Operating activities are different from the investing and financing activities of a firm. The investing activities section shows the investments in assets and other entities made by the company, while the financing activities section shows how the company is funded and the repayments made to fund providers in principal and interest.
2. The operating activities section can be prepared using two methods: the direct and the indirect methods. The direct method starts by identifying the cash receipts and payments from operating activities. The indirect method starts with the operating income and makes adjustments for non-cash flows, like Depreciation.
Answer:
C - borrowing someone's illustrations for your children's book
Explanation:
This is because you do not have permission to use the illustrations, and you are claiming the illustrations as your own when you put it in your book.
Plaese give brainliest or at least a thanks!
Will typically have a strong-willed learning environment.
The government sector and the foreign trade sector.