Answer:
$5.95
Explanation:
Given that,
Dividend paid in Year 7 = $2 per share
Growth rate of dividend = 2.2%
Required return = 16 percent
Share price is the present value of all future dividends.
Present Value of future dividends at year 6:
= 
= 
= 
= $14.49
Present value of dividends (Now):
= Present Value of future dividends at year 6 × (1 + Required return)^{-6}
= $14.49 × (1 + 0.16)^{-6}
= $5.95
Therefore, the current share price is $5.95 if the required return is 16 percent.
Answer:
a. Assuming you purchased the bond for $850, what rate of return would you earn if you held the bond for 30 years until it matured with a value $5,000?
future value = present value x (1 + r)ⁿ
- future value = $5,000
- present value = $850
- n = 30
5,000 = 850 x (1 + r)³⁰
(1 + r)³⁰ = 5,000 / 850 = 5.882652
³⁰√(1 + r)³⁰ = ³⁰√5.882652
1 + r = 1.0608444
r = 0.0608444
r = 6.08%
b. Suppose under the terms of the bond you could redeem the bond in 2025. DMF agreed to pay an annual interest rate of 1.3 percent until that date. How much would the bond be worth at that time?
future value = present value x (1 + r)ⁿ
future value = 850 x 1.013⁷ = $930.43
c. In 2025, instead of cashing in the bond for its then current value, you decide to hold the bond until it matures in 2048. What annual rate of return will you earn over the last 23 years?
5,000 = 930.43 x (1 + r)²³
(1 + r)²³ = 5,000 / 930.43 = 5.373859398
²³√(1 + r)²³ = ²³√5.373859398
1 + r = 1.075849638
r = 0.0758
r = 7.58%
Answer:
The correct answer is option (A) $2,600
Explanation:
Given data;
The data given can be tabulated below for easy understanding
Pairs Flow Distance Flow distance
X-y 30 20 600
Y-Z 280 10 2800
Z-X 180 10 1800
Total flow = 600 +2800 + 1800 = 5200
To calculate the total weekly cost, we use the formula;
Total weekly cost is = Total flow * Cost of per load
= 5200 *0.5
$2,600
Answer:
Adjusting Entry
December 31,
Dr. Service Revenue $3,000
Cr. Unearned Revenue $3,000
Explanation:
Using alternate treatment the cash received in advance is recorded as the revenue initially.
On September following entry was performed
Dr. Cash $15,000
Cr. Revenue $15,000
At the end of the year services of 4 months have been performed and the amount of one month's service is received in advance until this date. It needs to be adjusted according to the accrual concept.
<span>1. If Emir says he wants an office with windows and a nice view he is expressing his need for a comfortable job environment. The answer is "b. his job environment".
2. If Lei bikes to and from work every day in order to train for the Olympics her values and work ethic are what are important to her. The answer is "d. her values".</span>
