Answer:
a. The stock's price one year from now is expected to be 5% above the current price.
Explanation:
Under gordon model:
If we calculate the value of the stock for the year after that:
to calculate the value of the increase we divide next year over current year.
We have demostrate that next year stock should increase by 1 + growth so statement c is correct.
Answer:
Santa Fe's cost depletion expense for the current year is $90,000
correct option is b) $90,000
Explanation:
given data
Santa Fe paid = $300,000
Santa Fe recover = 5,000 pounds
Santa Fe extracted = 1,500 pounds
sold = $250,000
to find out
Santa Fe's cost depletion expense for the current year
solution
we get Santa Fe's cost depletion expense for the current year will be here as
cost depletion expense = × extracted .......1
put here value we get
cost depletion expense = × 1,500
cost depletion expense = 60 × 1,500
cost depletion expense = 90,000
so Santa Fe's cost depletion expense for the current year is $90,000
correct option is b) $90,000
Answer:
after 9 years:
FV $15,625.2437
in 14 years:
FV $31,223.0270
last, at the nineteenth year:
FV $55,222.1501
Explanation:
We have to solve for the annuity of 1,200 dollar with a yield of 9% at the proposed times:
C 1,200.00
time 9
rate 0.09
FV $15,625.2437
time = 14
FV $31,223.0270
time = 19
FV $55,222.1501