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:
a. Vendor billing is one of the steps.
c. Goods receipt is one of the steps
d. The send payment step involves creation of an FI document
Explanation:
The procurement includes the billing of the vendor, that is to negociate with suppliers for the price and accept the agrements made. Then we are going to receive the goods and check if they fulfil the quantity and quality requested.
Finally, the procurement department will pay the supplier. The FI document stands for the accounting entry to record transactions into the accounting
Answer:
horizon value at year 5 = $94.3444
current intrinsic intrinsic value P₀ = $47.73
Assuming that the markets are in equilibrium, Goodwin's current expected dividend yield is and Goodwin's capital gains yield is <u>0(it pays no dividends)</u>.
Goodwin has been very successful, but it hasn't paid a dividend yet. It circulates a report to its key investors containing the following statement:
Goodwin's investment opportunities are poor.
Is this statement a possible explanation for why the firm hasn't paid a dividend yet?
<u>B. False</u>
Generally companies that are experiencing a rapid growth do not pay dividends, because they need all the cash that they can use to finance their expansion. Sometimes mature companies that have a steady growth rate will also choose not to pay dividends because they consider themselves as solid investments and not paying dividends allows them to grow more and should increase stockholders' wealth more.
Explanation:
D₃ = $5.50
D₄ = $7.073
D₅ = $9.096
D₆ = $9.642 (and a constant growth rate of 4.38%
Re = 14.60%
horizon value at year 5 = $9.642 / (14.6% - 4.38%) = $94.3444
intrinsic value P₀ = $94.3444 / 1.146⁵ = $47.73
Answer:
Assuming Simon’s AGI is $40,000.
Gambling losses are only deductible to the extent of gambling winnings. Thus,Simon cannot deduct any of the $4,300 gambling losses. The $3,160 transportation expenses are also nondeductible as they are deemed to be personal expenses. The $2,650 broker management fees are deductible as investment fees (miscellaneous itemized deductions subject to the 2% AGI floor), and the $1,030 tax return fees are also deductible as miscellaneous itemized deductions subject to the 2% AGI floor.
Thus, $2,650 + $1,030 – (2% x $40,000 AGI) = $2,880 deduction
