Building and deploying flexible systems can allow for __________

If D1 = $1.25, g (which is constant) = 5.5%, and P0 = $40, what is the stock's expected total return for the coming year?

trapecia [35]

Answer:

The expected totar return is: 8,625%

Explanation:

Total return, when measuring performance, is the actual rate of return of an investment or a pool of investments over a given evaluation period. Total return includes interest, capital gains, dividends and distributions realized over a given period of time. Total return is the amount of value an investor earns from a security over a specific period, typically one year.

The formula for the total stock return is the appreciation in the price plus any dividends paid, divided by the original price of the stock.

Total stock return= [(P1-P0)+D]/P0

P0: initial stock price

P1: Ending stock price (Period 1)

D0: dividend

In this case, we do not have P1. So we have to use an alternate version of the Gordon Growth Model. The GGM is mainly applied to value mature companies that are expected to grow at the same rate forever.

P= D1/(r-g)

where:

P=Current Stock Price

g=Constant growth rate in perpetuity

expected for the dividends

r=Constant cost of equity capital for that

company (or rate of return)

D1=Value of the next year’s dividends

By moving terms and isolating "r" we achieve the following formula:

r= D1/P+g

r=1,25/40+0,055= 8,625%

3 0

4 years ago

Martin and Carl own properties that are adjacent to one another, and Carl’s property abuts a public pond and grazing area for an

Eddi Din [679]

Answer:

appurtenant

Explanation:

This is like the right over someone's land for a specific reason or purpose.

It is legal and it is an easement where the right of use is attached to the land itself. The property that benefits from the easement is known as the dominant estate (which is Martin), while the property that is burdened by the easement is known as the servient estate (which is Carl) because it serves the dominant estate.

3 0

3 years ago

Read 2 more answers

Financial institutions pay___

Dmitriy789 [7]

Answer: B

Explanation: I work for a bank.

3 0

3 years ago

Read 2 more answers

Dynamic Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been cl

Veronika [31]

Answer:

Dynamic Weight Loss Co.

Statement of Financial position as at June 30, 20Y7

Assets

Current Asset $ $

Cash 72,000

Accounts Receivable 187,500

Supplies 11,200

prepaid Insurance 8,400

Prepaid Rent 6,000

Total Current asset 285,100

Property, plant and Equipment

Land 375,000

Equipment 325,900

Accumulated Depreciation - Equipment (186,000) 514,900

Total Assets 800,000

Liabilities and Owners Equities

Current liabilities

Accounts Payable 51,200

Salaries Payable 7,500

Unearned Fees 21,000

Total liabilities 79,700

Owners Equities

Common Stock 100,000

Retained Earnings 620,300

Total Equities 720,300

Total Liabilities and Owners Equities 800,000

Explanation:

The balance sheet shows the company's assets, liabilities and equities.

Using the accounting equation

Assets = Liabilities + Equities

Total assets

= 187,500 + 325,900 - 186,000 + 375,000 + 8400 + 6000 + 11,200 + C

where C is the closing balance in the cash account

= 728,000 + C

Total liabilities

= 51,200 + 7500 + 21,000

= $79,700

Total equities

= 620,300 + 100,000

= $720,300

Since Assets = Liabilities + Equities

728,000 + C = 720,300 + 79,700

C = 720,300 + 79,700 - 728,000

C = $72,000

5 0

3 years ago

Georgia Corp. uses the indirect method to prepare the statement of cash flows. Refer to the following

dedylja [7]

Answer:

A) subtraction from net income under the operating activities section

Explanation:

Under the indirect method to determinate the cashflow from operating activities we reconcile the net income with the change in the net working capital.

The working capital is the current assets and current liabilities.

For this case, the account receivable account, increase to 48,000 from 45,000

This increase means, less sales were collected, so cash "outflow" as the cash from sale is not being converted into cash. It could also be understand as the company use 3,000 in financing their customers. This also is seeing as a decrease in cash flow.

7 0

3 years ago

Building and deploying flexible systems can allow for ___________.