To get the growth rate, we will follow the Gordon Growth modelP= D/(K-G)whereP= stock value=$68D= Expected dividend=$3.85G= Growth rateK= required rate of returnG =K-(D/P)Substitute the given valuesG= 0.11-(3.85/68)
G= 5.34%The growth rate for stock required is 5.34%
Answer:
$329,840
Explanation:
Calculation to determine the net note payable to Grant
Net note payable to Grant=$70,000 × 4.712
Net note payable to Grant= $329,840
OR
Net note payable to Grant= ($70,000 × 5.712) – $70,000
Net note payable to Grant= $329,840
Therefore On AGH's December 31, 2017 balance sheet, the net note payable to Grant is:$329,840
Answer:
c
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