Answer:
$44.87
Explanation:
Use Dividend Discount Model to solve this question;
First, find the dividend per year;
First year's dividend ; D1 = D0(1+g)
D1 = 1.32 (1.30) = 1.716
Second year's dividend ; D2 = 1.716 (1.10) = 1.8876
Third year's dividend ; D3 = 1.8876 (1.05) = 1.9820
Next, find the present value of each dividend at 9% required return;
PV (D1) = 1.716 / (1.09) = <em>1.5743</em>
PV (D2) = 1.8876 /(1.09²) = <em>1.5888</em>
PV (D3 onwards) = 
= PV (D3 onwards) = <em>41.7052</em>
Sum up the PVs to find the current market value of the stock;
= 1.5743 + 1.5888 + 41.7052
= 44.8683
Therefore the value is $44.87
Answer:
how much must Gary receive from his father's trust?
682,5
Explanation:
$850 Gary's social security + ($850 X 55%) Barbara's social security + x father trust= $2,000
850 + ($850 x 0.55) + x = $2000
850 + 467.50 + x = $2000
1317.50 + x = 2000
x=682,50
Answer:
The list is follows:
a. Inflation has been abound 2.5% for some time. Village Realtors is considering measuring its land values in inflation-adjusted amounts - Stable-monetary-unit assumption
b. You get an especially good buy on a laptop, paying only $ 300$300 when it normally costs $ 800. What is your accounting value for this laptop? - Historical cost principle
c. Burger King, the restaurant chain, sold a store location to McDonald. How can Burger King determine the sale price of the store long dash—by a professional appraisal, Burger King's original cost, or the amount actually received from the sale? - Historical cost principle
d. General Motors wants to determine which division of the company long dash—Chevrolet or Cadillac long dash—is more profitable - Entity assumption
Answer:
a) The company turn its inventory at 1.5.
b) Per unit inventory cost for a product that costs $1000 is $166.67.
Explanation:
a) number of units sold = ($60000000/year)*(1 unit/$2000)
= 30000 units/year
COGS = 30000 units/year*$1000/unit
= $30000000/year
inventory = $20000000
flow time = inventory/flow rate
= $20000000/30000000 per year
= 0.67 years
inventory turns = 1/flow rate
= 1/(0.67)
= 1.5
Therefore, The company turn its inventory at 1.5.
b) %inventory cost per computer = 25%*0.6667 years
= 16.667%
16.667%*$1000 = $166.67 per unit
Therefore, Per unit inventory cost for a product that costs $1000 is $166.67.
Rick gave his son $100 to buy food and drinks. His son returned with $25.50 in change. Therefore the amount spent was
$100 - $25.50 = $74.50.
Let
x = number of hot dogs bought (at $3.50 per hot dog).
y = number of milk shakes bought (at $8 per milk shake).
There were 8 orders of soda at $5 per soda.
The total order is $74.50, therefore
3.50x + 8y + 8*5 = 74.50
Simplify to obtain
8y = 74.5 - 3.5x
y = 4.3125 - 0.4375x
We must have whole numbers (integers) for x and y.
Create a table that varies x from 0 to 8, and look for y to be an integer, as shown below.
x y
--- -------
0 4.3125
1 3.8750
2 3.4375
3 3
4 2.5625
5 2.1250
6 1.6875
7 1.2500
8 0.8125
Because we cannot have fractional values for either x or y, the solution is x=3, y=3
Answer:
3 hot dogs, 3 milk shakes, and 8 sodas.
