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lina2011 [118]
2 years ago
8

Parkinson Company (PC) had a beginning balance of $86,000 and an ending balance of $90,000 in itslong-term marketable securities

account. During the period the Company paid $10,000 to purchase marketable securities. If the Company reported a gain on the sale of marketable securities of $1,000 the amount of the cash inflow from the sale of securities is
A. $7,000.
B. $6,000.
C. $5,000.
D. None of the answers is correct.
Business
1 answer:
algol [13]2 years ago
8 0
B I think sorry if wrong :/
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The answer is b. $104,800

Explanation:

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Answer:

The correct answer would be A, Onions.

Explanation:

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What is a digital footprint?
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The current stock price is $21.54

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The future cash flows in this sense are the dividends payable by the company in years 1,2 and 3 which are $6.15,$9.05 and $12.25 per share respectively.

The discount factor in this case is given as 1/(1+r)^N where  r is the required rate of return of 11.7% and the relevant year of dividend receipt,hence the share price is computed thus:

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1            $6.15      1/(1+11.7%)^1=0.89525   $5.5

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3            $12.25  1/(1+11.7%)^3=0.71753        $8.79

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