The LMC Partnership has 3 partners and is concerned about what would happen to their $300,000 business if one of the partners sh
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Answer:
intrinsic value of SCI’s shares is $33.28 per share
Explanation:
given data
dividend (D₀) = $1.92 per share
constant rate (g) = 4.00% per year
required return (rs ) = 10.00%
to find out
intrinsic value of SCI’s shares
solution
we know that intrinsic value is here express as
intrinsic value = current dividend × ( 1+ growth rate ) ÷ ( required rate - growth rate ) .............................1
put here value we get
intrinsic value =
intrinsic value = 33.28
so intrinsic value of SCI’s shares is $33.28 per share
Answer:
<em>1) Monthly payments:</em>
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<em>2) Balance in ten years:</em>
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Explanation:
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<u><em>1. What are the monthly payments?</em></u>
The formula to compute the monthly payment of a loan is:
Where:
- Payment is the monthly payment
- r is the monthly interes rate: 8% / 12 = 0.08/12
- n is the number of months: 12 × 30 = 360
- Loan = $190,000
Substitute and compute:
<u><em>2. What would the loan balance be in ten years?</em></u>
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There is a formula to calculate the balance in any number of years:
Substitute with n = 10 × 12 and compute: