Answer:
$50
Explanation:
Dividend discount model (DDM) is used to calculate intrinsic value of a stock. Since the dividends are expected to grow indefinitely, the formula will be as follows;
Price (P0) = D1 / (r-g)
where D1 = Next year's dividend = 2.50
r = required rate of return = 12% or 0.12 as a decimal
g = dividend growth rate = 7%
Price (P0) = 2.50/(0.12-0.07)
P0 = 2.50 /0.05
P0 = $50
Answer:
$450,000
Explanation:
Theodore Enterprises had the following pretax income (loss) over its first three years of operations:
2016 $ 500,000
2017 (900,000 )
2018 1,500,000
For each year there were no deferred income taxes and the tax rate was 30%. In its 2017 tax return, Theodore elected a net operating loss carryback. No valuation account was deemed necessary for the deferred tax asset as of December 31, 2017.
Therefore Theodore's income tax expense for 2018 is 30% x 1,500,000 = $450,000
Loss carry back is when a business elects to net off losses against a previous year's return as opposed to loss carry forward which is the future years' return.
B. Credit; discount on bonds payable
Answer:
what is your investment worth at the end of 4 years?
$22,889
Explanation:
$22,889
[((21600)(0.96)(1.10)91-.013))/21600]-1=4.23%
Answer: Long run
Explanation:
The long-run is a period of time when all factors of production and the costs are variable. When firms are in the long run, they are able to adjust all costs. Also, a firm should expect competition in the long run.
In the long run, supply is elastic because a given percentage change in price will lead to a larger change in the quantity supplied of the good. A producer is flexible in his or her decisions on production.