They get sold to another shop with higher demand, or become breeding stock
Answer:
We know the company's ROE and plowback ratio, and we can use these 2 figures to find out the future growth rate of the company. In order to do this we need to multiply the ROE by plowback ratio.
0.18*0.7=0.126= 12.6%
We can also find the company's dividend, by (1- plowback ratio) we get how much percentage of the earning is the company distributing as dividends.
(1-0.7)= 0.3 which is the dividend payout ratio
Dividend= Dividend payout ratio *EPS
0.3*6=1.8
This dividend is the dividend which the company will pay in the upcoming year after which they will have a constant growth rate, so in order to find the intrinisc value now, we need to find the intrinsic value of the stock will be in the upcoming year using the upcoming years dividend and then discount that value by the required return of the stock to get the current years intrinsic value.
Now we can use the DDM formula to find the intrinsic value of the stock in the upcoming year.
The formula for DDM is D*(1+G)/(R-G)
D= 1.8
G= 0.126
R=0.14
1.8*(1+G)/0.14-0.126
=144.77
Discount it to find the present value
144.77/1.14
=128.5
The intrinsic value of the stock should be 128.5
Explanation:
A concave mirror because a concave mirror can focus light rays to a point
Answer:
The correct answer to the following question is option B) Exhaustion .
Explanation:
The general adaptation syndrome can be described as 3 stage response , that body has to stress. These are alarm reaction, resistance and exhaustion. Exhaustion is the third stage in the general adaptation syndrome, where the body has already lost its energy resources by continuously trying but the body is not able to recover from the first alarm reaction stage. In this stage body is no longer able to fight the stress.
Answer:
The journal entry for the issuance of the bond is shown below:
Explanation:
The entry will be recorded on January 1
Cash A/c..............................................Dr $83,497
Discount on bonds payable A/c......Dr $6,503
Bonds Payable A/c............................Cr $90,000
On issuing the bond, cash is increasing, any increase in cash is debited. Therefore, the cash account is debited. The discount on bonds payable is debited. And the bonds payable account is credited.
Working Note:
Discount on bonds payable = Bonds payable - Cash
= $90,000 - $83,497
= $6,503
