Answer:
The price of stock today is $118.22
Explanation:
To calculate the price today, we will use the dividend growth model and discount back the cashflows. The first dividend will be received in year 16 so $15 received in year 16 will be dicounted back to year zero at 8% cost. Besides after that the growth rate becomes constant so the terminal value will be calculated at the end of year 16 and will be discounted back to year zero also using same 8% discount rate and 16 year as power.
P0 = 15 / (1+0.08)^16 + [15*(1+0.04) / 0.08-0.04] / (1+0.08)^16
P0 = $118.22
Answer and Explanation:
The description is as follows:
The annual maintenance for an equipment is $5,600 it would be classified as a normal repairs & maintenance and the same would be expensed
The remodeling of office for $22,200 would be classified as an improvement. The same would be capitalized & depreciated
The rearrangement of the shipping & receiving area for $35,200 would be classified as a rearrangement and The same would be capitalized & depreciated
The addition for $25,200 would be classified as an addition and The same would be capitalized & depreciated
Answer:
The transaction price would Leo estimated for this contract is $30,000
Explanation:
The computation of the transaction price is shown below:
= (Fixed fee + additional amount) × chance + fixed fee × chance
= $35,000 × 50% + $25,000 × 50%
= $17,500 + $12,500
= $30,000
hence, the transaction price would Leo estimated for this contract is $30,000
We simply applied the above formula so that the correct answer could come
Answer:
Customer loyalty strategy
Explanation:
The customer loyalty strategies are developed by a company to retain its current clients and encourage them to recommend its services or products. mainly, the client loyalty is promoted through different special discounts or additional services that a client will have if recommend the company. these strategies can be used too if the company wants the clients increase the buy of services or products; in this case if they get a certain number of products they will obtain discounts or additional products.
