Which of the following should be included in the acquisition cost of a piece of equipment?
1 answer:
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Answer:
Amount for each stock to be paid at maximum = $54
Explanation:
Using Dividend growth model, we have,
Where = Expected price of share today
= Dividend to be paid at this year end
=
= Required return on investment
g = Growth rate
Therefore,
= = $3 + 8% = $3.24
= $54
Therefore, current price for this share or sock to be paid = $54 per share.
Answer:
The ammount due at the end of the loan adds for $27,456
Explanation:
If the payment is in full at maturity, the man must pay the principal of 26,000 plus the interest during the period of 4 years.
It is important to notice that the loan is done at simple interest, so the interest does not capitalize.