Answer:
$52,000,000
Explanation:
The computation of the dividend paid to the shareholders during the year is shown below:
As we know that
Ending retained earnings balance = Opening retained earning balance + net profit of the year - dividend paid
$950 million = $937 million + $65 million - dividend paid
$950 million = $1,002 million - dividend paid
So, the dividend paid is
= $1,002 million - $950 million
= $52,000,000
Answer: 6%
Explanation:
The annual payments can be considered to be annuity payments as they are constant. The amount borrowed can be considered the present value of the annuity.
Present value of annuity = Annuity * Present value interest factor of annuity, 8 years, %?
178,960 = 28,819 * Annuity factor
Annuity factor = 178,960 / 28,819
= 6.20979
To find out the interest rate, look at the Present Value of Annuity table and go to the 8 period column. Look for 6.20979. The interest rate that intersects with this factor is the interest rate implicit in this agreement.
That rate is 6%.
False, Nathan should not include this in his budget.
When budgeting, there are several things that one should include such as:
- net income
- debt repayments
- food
- utilities
- insurance
- savings and others
Notice how one should include their net income not their gross income. Net income is what comes after tax and this is the disposable income that a person has and can spend from.
In conclusion, Nathan should only include his net income and as this commission is before taxes, he should not include it.
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Answer:
The answer is $41.21
Explanation:
Required Rate of Return = Risk Free Rate + Beta*(Market Risk Premium)= 5.2% + 0.9 * 6% = 10.6%
Cost of Equity = D1/Current Stock Price + Growth Rate
10.6% = $3/$40 +g
g = 3.1%
Stock Price After 3 Years = Current Stock Price*Growth Rate= $40 * (1.031)= $41.21
