To determine the amount that must be invested each year, a computation must be made using the formula for the future value of an annuity due. The future value of an annuity can be described as the sum of the future value of each payment.
Investing can be defined as the process of buying assets that increase in value over time and provide returns in the form of income capital gains or payments. The equation for the future value of an annuity due is the sum of the geometric sequence, or can be written as A(1 + r)1 + A(1 + r)2 + ... + A(1 + r)n.
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Answer:
Current Price of the Share Stock is $ 37.86 (D)
Explanation:
Using dividend valuation method with a constant growth rate assumption, share price is calculated as : Po =D1/(Ke-g).
Where; Po ⇒Market Value excluding any dividend currently payable
D1= Do(1+g)⇒Expected dividend in one year's time
Ke =Required rate of return by shareholders
g= Dividend growth rate
<u>Calculation</u>
D1 = 5(1+0.06)= $5.3
Hence, Po= 5.3/(0.20-0.06)
Po=$37.86
The share price is expected to reflect the future expected stream of income i.e dividends and capital gains ,discounted at an appropriate cost of capital.
Some of the assumptions of dividend valuation method include but not limited to the following:
- it assumed that investors act rationality and in the same way ;
-the dividend either show growth or no growth;
-the discount rate used exceeds the dividend growth rate.
Answer:
The method the parent use will have no effect on consolidated total because it is only for internal reporting purpose.
Explanation:
Paar's equipment book value—12/31/15 of $294,000
Add Kimmel's equipment book value—12/31/15 of $190,400
Add Original acquisition-date allocation to
Kimmel's equipment of ($400,000 − $272,000) = $128,000
Less Amortization of Allocation
($128,000/10 years * 3 years) = ($38,400)
<h3>
Equals Consolidated Equipment of $574,000
</h3>
The method the parent use will have no effect on consolidated total because it is only for internal reporting purpose.
with common resources, the equilibrium quantity can be individually rational because the consumer of the common resource experiences individual benefits from use of the common resources
<h3>What is
equilibrium?</h3>
Chemical equilibrium is the state in which both the reactants and products are present in concentrations that have no further tendency to change with time, resulting in no observable change in the system's properties.
The only thing that can change an equilibrium constant is temperature. If the pressure is changed, the position of equilibrium can be altered. The position of equilibrium moves in such a way that it tends to undo the change that you have made
When a reaction and its reverse reaction proceed at the same rate, this is referred to as chemical equilibrium. Both forward and reverse reactions occur as a system approaches equilibrium.
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Answer:did
Explanation:Septic system is a term used to describe underground structures that collects waste waters from the different sources within the environment and through it water can be treated.
Septic systems are commonly used in rural areas where there is no centralised waste treatment system.
WHEN THE GSI REPORT MISPLACES ANY DETAIL IN ITS REPORT, IT MEANS THAT IT ACTUALLY BREACHES THE CONTRACT.
