Answer:
First Expected Dividend will come in at the end of Year 3 or t=3 assuming current time is t=0.
D3 = $ 4.25, Growth Rate for year 4 and year 5 = 22.1 %
Therefore, D4 = D3 x 1.221 = 4.25 x 1.221 = $ 5.18925 and D5 = D4 x 1.221 = 5.18925 x 1.221 = $ 6.33607
Growth Rate post Year 5 = 4.08 %
D6 = D5 x 1.0408 = 6.33607 x 1.0408 = $ 6.59459
Required Return = 13.6 %
Therefore, Current Stock Price = Present Value of Expected Dividends = [6.59459 / (0.136-0.0408)] x [1/(1.136)^(5)] + 4.25 / (1.136)^(3) + 5.18925 / (1.136)^(4) + 6.33607 / (1.136)^(5) = $ 45.979 ~ $ 45.98
Price at the end of Year 2 = P2 = Present Value of Expected Dividends at the end of year 2 = [6.59459 / (0.136-0.0408)] x [1/(1.136)^(3)] + 4.25 / (1.136) + 5.18925 / (1.136)^(2) + 6.33607 / (1.136)^(3) = $ 59.3358 ~ $ 59.34
Dividend Yield at the end of year 3 = DY3 = D3 / P2 = 4.25 / 59.34 = 0.07612 or 7.612 %
Total Required Return = 14. 6 %
Therefore, Required Capital Gains Yield = 14.6 % - 7.612 % = 6.988 %
Answer:
Explanation:
We solve by first, getting the quota Horatio pays on his loan:
PV 12,450
time: 10 yearss x 12 months per year = 120
monthly rate: 7.3% / 12 = 0.006083333
C $ 146.487
Now, we miltiply the quota by the quantity of payment ans subtract the principal to get the amount of interest paid:
quota times quantity of monthly payment: total amount paid
less principal: interest paid.
146.49 x 120 - 12,450 = 5,128,80
Answer:
the answer is: B) improve productivity by reducing turnover.
Explanation:
The efficiency weigh theory states that when employers increase their employees' wages above average market wages, they will earn higher profits due to:
- An increase in labor productivity since the employees are very motivated to work in the company and employee turnover decreases.
- The increase in labor productivity and the decrease in employee turnover will offset the increase in costs due to higher wages.
Answer:a) Will give you less opportunities than a career starting right away
wrong
Explanation:
Answer:
a. have been recorded on the company's books but not yet by the bank
Explanation:
The deposit in transit means the deposit is recorded in the book of the company accounts but the same is not recorded in the bank books of account unless when they are not deposited.
So while preparing the bank reconciliation statement, we added the deposit in transit and deduct the outstanding checks in the bank books of accounts
