Answer:
The most you should pay for this stock is 126.89
Explanation:
The dividend in years 1 – 3 will grow at 12% and then at 5% forever.
We had to get the PV for the dividends in years 1-3 (year 3 also includes the estimated future value of the stock).
We used our calculators to find the PV of each year at the 8% discount rate. Finally we will add them all together to get the final answer.
We find the future dividends using g =12%
Dividend in year 0 --->
Dividend in year 1 ---> 3.36
Dividend in year 2 ---> 3.76
Dividend in year 3 ---> 4.21
Dividend in year 4 ---> 4.43
Now we will calculate the present value of the future dividends using r = 8%
Stock Value assuming constant growth rate = 147.52 --(a)
PV in year 1 ---> 3.11
PV in year 2 ---> 3.23
PV in year 3 ---> 120.45 --(discounting (a))
= 120.45 + 3.23 + 3.11
= 126.89
Answer:
The right solution is "600000".
Explanation:
The given values are:
Cost of office furniture,
= $100,000
Cost of the computer system,
= $500,000
- The changed MACRS enables a company to reduce the mortgage balance of such deteriorating properties over time.
- Throughout the very first years, MACRS permits quicker depreciation although subsequently slows down depriving. This seems to be fantastic for corporations from a tax point of view.
Now,
The cost recovery deduction will be:
= 
On substituting the values, we get
= 
= 
Answer:
Top-Level Management
Explanation:
Your top management consists of CEOs, CFOs, Presidents and vice presidents, who are responsible for establishing the general management of an enterprise and ensuring that important organizational targets are accomplished.
Answer:
Total cost = Total ordering cost + Total holding cost
Total cost = DCo + QH
Q 2
Where
D = Annual demand
Co = Ordering cost per order
Q = EOQ
H = Holding cost per item per annum
D = 40,000 units
Co = $48
H = 18% x $8.00 = $1.44
EOQ = √2DCo
H
EOQ = √2 x 40,000 x $48
$1.44
EOQ = 1,633 units
Explanation:
EOQ equals 2 multiplied by annual demand and ordering cost divided by holding cost per item per annum. The holding cost per item per annum is calculated as holding cost rate multiplied by unit cost.
