Answer:
Explanation:
Price is sum of:
1. Present value of expected dividend payments during 1-4 years;
2. Present value of the expected market price at the end of the fourth year based on growth at 5%.
Present value of expected dividend payments during 1-4 years:
PV1 = 3*(1+0.30)*0.8929 = 3.90*0.8929 = $3.482
*0.8929 = 1/1.12
PV2 = 3.90*1.30*0.7972 = 5.07*0.7972 = $4.042
PV3 = 5.07*1.30*0.7118 = 6.591*0.7118 = $4.691
PV4 = 6.591*1.30*0.6355 = 8.5683*0.6355 = $5.445
Total = $17.661
Present value of the expected market price at the end of the fourth year:
Market price of the share at the end = 5th year dividend/(Required rate of return - growth rate)
5th year dividend = $8.5683*(1+growth rate) = $8.5683*(1+0.05) = $9
Market price of the share at the end = $9/(0.12-0.05) = $128.57
Present value of $128.57 is 128.57*0.6355(present value interest factor for year 4) = $81.7
So the price of share is $17.661+$81.7 = $99.37
Answer:
The correct answer to the following question will be Option C.
Explanation:
- Constant cost industries seem to be a sector wherein the proportion of units produced as well as manufacturing costs every unit maintains the very same irrespective including its amount of manufacturing or rise in population. Which doesn't use input data in the appropriate amount to influence the rates of that same components by a shift in industry revenue.
- This doesn't even use inputs in such amounts that perhaps the costs of that same inputs will be influenced by a change in business production.
The other choices are not linked to an industry of this kind. Therefore the clarification above is correct.
Answer:
a. Insurance expense for the month of march
= ($3,840 / 12 months) * 1 month
= $320 per month
b. Balance in prepaid insurance as of March 31
= ($3,840 / 12 months) *11 months remaining
= $3,520
c. Equipment rent expense for the month of April
= ($23,160 / 24 months) * 1 month
= $965
d. Balance in prepaid equipment rental as of April 30
= Nil ($0) as it is not mentioned that payment has been made, it is only mentioned that two year rental contract has been entered into.
Answer:
In today’s digital market space consumers and businesses interact, sell, and buy beyond their local borders. With greater access to foreign markets, many U.S companies are looking to expand overseas and to sell internationally.
Global retail sales, including both in-store and online purchases, surpassed $22 trillion in 2014, according to recent figures from eMarketer. The marketing research firm also predicts a 5.5 % increase in overall international retail sales to $28.3 trillion by 2018.
Explanation:
hope <em>it </em><em>helps</em>
Answer:
Deferred Tax Liability = $11,400 Credit
Explanation:
given data
pretax financial income = $228,000
Indigo’s tax depreciation = $38,000
tax rate = 30 %
solution
we know here that Income Tax Expense is
Income Tax Expense = $228,000 × 30%
Income Tax Expense = $68400 Dr
so as that
Deferred Tax Liability will be here
Deferred Tax Liability = $38000 × 30%
Deferred Tax Liability = $38000 × 0.30
Deferred Tax Liability = $11,400 Credit
