Answer:
Case 1
Price of share = $14.21
Case 2
Price of share = $44.17
Explanation:
Provided details,
We have the following,
Current dividend = $1.35
Growth rate = 0
Annual rate of return = 9.5%
Using dividend growth model value of share,
Where D1 = Dividend at year end
Ke = Cost of capital or expected return
P0 = price of share
g = growth rate
Thus P0 = 
= $14.21
In case 2, we have,
Dividend per share = $6.00 For a period of 9 years
Expected return = 11%
Growth rate = 0
Sale price at end of year 9 = $28
Present value annuity factor for 9 year @ 11%
= 5.537
Present value of Dividend = $6 
5.537 = $33.22
Discounted value of $28 for 9 years = 0.391 {tex]\times[/tex] $28 = $10.95
As, the share will be sold after 9 years, the price will be discounted to current value.
Total present value of share = $44.17
Thus, current price = $44.17
Case 1
Price of share = $14.21
Case 2
Price of share = $44.17
Answer: C. Thursday, December 18th
Explanation:
The ex-date for dividends is the business day before the dividends are to be distributed. This is regardless of when the news of the dividends are announced by various entities.
The dividends are to be distributed on Friday, December 19th which means that the ex-date has to be the day before which is Thursday the 18th. As this is a weekday, we can assume that it is a business day as well.
starting with a balance of $1200,
debit -345: 1200 - 345 = 855
debit -43: 855 - 43 = 812
credit +123: 812 + 123 = 935
New balance is $935
Answer:
The correct answer is C.
Explanation:
Giving the following information:
A machine with a cost of $65,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hours.
To calculate the depreciation expense for each year, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
Year1= [(65,000 - 5,000)/4]*2= $30,000
Year2= [(60,000 - 30,000)/4]*2= $15,000
The correct answer is B: be expanded.
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