Given the information in the table, what is the price of the stock in YEAR 1?
|
Today’s Dividend |
$3.19 |
|
Discount Rate |
7.45% |
|
Growth rate in dividends 0 to 1 |
7.12% |
|
Growth rate in dividends 1 to 2 |
7.25% |
|
Growth rate in dividends 2 to 3 |
5.40% |
|
Growth rate in dividends 3 onward |
4.65% |
Please do on piece of paper or show work and not on excel so i can follow.
In: Finance
On march 31,2019,the balance of the accounts appearing in the ledger of Racine Furnishings Company, a furniture wholesaler, are as follows
| Particulars | Amount$ |
| Accumulated Depreciation - Building | 3,00,000 |
| Administrative expenses | 2,16,000 |
| Building | 10,00,000 |
| Cash | 70,000 |
| Cost of merchandise sold | 15,20,000 |
| Interest expense | 4,000 |
| Kathy Melman,Capital | 6,34,800 |
| Kathy Melman, Drawing | 70,000 |
| Merchandise inventory | 3,92,000 |
| Notes payable | 1,00,000 |
| Office supplies | 8,000 |
| Salaries payable | 3,200 |
| Sales | 25,64,000 |
| Selling expenses | 2,86,000 |
| Store Supplies | 36,000 |
Prepare a multiple step income statement for the year ended march 31,2019
In: Accounting
If you deposit $2,000 at the end of each year into an IRA account that is expected to earn 8% per year simple interest, how much will be in the account in 30 years? (Answer to the nearest dollar)
In: Finance
The management of Hess, Inc., is developing a flexible budget for the upcoming year. It was not pleased with the small amount of net income the budget showed at all sales levels and is contemplating using a less expensive material. This action reduces direct material cost by $1 per unit. What would be the effects on financial statements and a flexible budget if management takes this approach? Are there other factors that need to be considered?
In: Accounting
At the end of the fiscal year, the usual adjusting entry for depreciation on equipment was omitted (i.e., the entry was not made). Which of the following statements is true?
a. Net income will be understated (too low) for the current year.
b. Total liabilities and total assets will be overstated (too high).
c. The Balance Sheet and Income Statement will be misstated but the Statement of Retained Earnings will be correct for the current year.
d. Total assets will be overstated (too high) at the end of the current year.
In: Accounting
Which of the following is NOT true?
Group of answer choices
Compared to this year, a discount bond’s price will increase next year, everything else equal.
Compared to this year, a premium bond’s price will decrease next year, everything else equal.
Compared to this year, a par bond’s price will remain constant next year, everything else equal.
Compared to this year, a premium bond’s price will increase next year, everything else equal.
In: Finance
A stock is expected to pay a year-end dividend of $8 and then to sell at a price of $109. The risk-free interest rate is 4%, the expected market return is 12% and the stock has a beta of 0.8. What is the stock price today?
Multiple Choice
$102.99.
$98.73.
$105.98.
$109.00.
In: Finance
The current price of a stock is $22, and at the end of one year its price will be either $29 or $15. The annual risk-free rate is 5.0%, based on daily compounding. A 1-year call option on the stock, with an exercise price of $21, is available. Based on the binominal model, what is the option's value?
In: Finance
An investment will pay $16,100 at the end of each year for eight years and a one-time payment of $161,000 at the end of the eighth year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)
Determine the present value of this investment using a 6% annual
interest rate. (Round your answer to the nearest whole
dollar.)
In: Accounting
Suppose you deposit $500 in an account at the end of this year, $400 at the end of next yer, and $300 at the end of the following year. The interest rate is 7.5%. How much will be in the account immediately after the third deposit is made? How much will be in the account at the end of three years if the deposits are made at the beginning of each year? Please show work and proper equation to use.
In: Finance