Answer:
Present value = $41.8160 rounded off to $41.82
Explanation:
Using the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the present value of the next four dividends, we will use the following formula,
Present value = D1 / (1+r) + D2 / (1+r)^2 + D3 / (1+r)^3 + P4 / (1+r)^4
Where,
r is the required rate of return
Present value = 2.85 / (1+0.095) + 3.95 / (1+0.095)^2 +
5.15 / (1+0.095)^3 + 46 / (1+0.095)^4
Present value = $41.8160 rounded off to $41.82
Answer:
does not need a required rate to calculate
is the rate at which npv is zero
Explanation:
Internal rate of return is an example of capital budgeting method
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested.
Projects with the IRR greater than the discount rate should be accepted. It means that it is profitable.
Projects with more than one negative cash flow are unsuitable for calculating with IRR. This is because it can lead to multiple IRR, Thus, it not suitable for analysing all investment scenarios.
The net present value is the most preferred capital budgeting method
Other capital budgeting methods includes
1. profitability index = 1 + (NPV / Initial investment)
2. Accounting rate of return = Average net income / Average book value
3. Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows
4. Net present value is the present value of after-tax cash flows from an investment less the amount invested.
Answer:
A) Recognize the write-down as a separate line item.
Explanation:
IAS 2 Accounting for Inventory requires that inventory be recognized at the lower of cost or net realizable value. Inventory is a balance sheet item which is initially recognized at cost.
However, once there is an indication that the cost is lower than the net realizable value, the carrying amount of inventory is written down with the write off recognized as a separate line in the P/l and not as an addition to the cost of goods sold.
Hence the right option is A) Recognize the write-down as a separate line item.
Answer:
The solution according to the given query is provided below.
Explanation:
The given question seems to be incomplete. The attachment of the complete query is provided below.
Now,
The additional investment will be:
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By putting the values, we get
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Now,
The drawings will be:
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By putting the values, we get
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Answer:
I expect the answer in the following form
Explanation:
Irish lions play with Japan to get better and learn new things
