Answer:
$33.50
Explanation:
we can use the perpetual growth model to determine the price of the stock
the firm's stock price = ($1.25 x 1.15)/1.11 + ($1.25 x 1.15²)/1.11² + ($1.25 x 1.15³)/1.11³ + [($1.25 x 1.15³ x 1.06)/(11% - 6%)]/1.11³
the stock price in 3 years = ($1.25 x 1.15³ x 1.06)/(11% - 6%) = $40.30
the firm's stock price = ($1.25 x 1.15)/1.11 + ($1.25 x 1.15²)/1.11² + ($1.25 x 1.15³)/1.11³ + $40.30/1.11³ = $1.30 + $1.34 + $1.39 + $29.47 = $33.50
Answer:
The stock's value per share is $90.09.
Explanation:
In order to estimate the value of the share, first we have to estimate the value of the company at year 0 (today). We start from the FCF, that is equal to 200,000,000 (year 1). The formula of the company's value is 
, where g is the constant rate of grow (5%). So, the value of the company at year 1 is 
.
The next step is to obtain the value at year 0, with the formula 
. So 
Finally, the stock's value per share is 
Answer:
The given statement is False
Explanation:
The sale is recorded at the time when the company sells is products and services to the customer and for that the journal entry is to be passed
Now if there is a return of goods that are sold by the company to the customers, the journal entry is to be recorded for sales returns
So the entry is recorded for that good only i.e. return
Therefore there is no need to record two entries
Hence, the given statement is false
Answer:
A) motion for judgment on the pleadings
Explanation:
When one party files a motion for judgment on the pleadings, it is requesting that the judge considers only the facts included in the pleadings and that he/she rules in favor of them.
This type of motion can be filed only after all the pleadings are complete and it basically requests that the court should make their ruling based only on the evidence already presented, and that all the evidence needed for a verdict has already been presented.
The situation is an illusory promise. An illusory promise is created when both Southwest Inc. and Geo Construction lacks in mutuality and only Southwest Inc is offering. In the end, the Southwest Inc did not continue sending because Geo Construction has the possibility that whether the food tastes great or not, they cannot assure if they will be paid.
