What is a present value of a stock, if the price for now is $40? Use a

Fantastic news! We've Found the answer you've been seeking!

Question:

What is a present value of a stock, if the price for now is $40? Use a discount rate of 10% and period of 45 years. Refer to the generalized dividend valuation method.

Related Book For answer-question

Financial Accounting Information For Decisions

ISBN: 978-0324672701

6th Edition

Authors: Robert w Ingram, Thomas L Albright

See More Books

Posted Date: Jun 08, 2022 07:13 AM

See More Questions

what is a present value of 4000 per year, at a discount rateWhat is the painting lines utilization and efficiency according to the companys definitions?"
Is it possible to convert a present value of an ordinary annuity table to the present value of an annuity due table? Explain.
A 20 year annuity has a present value of $42,419,233. If the interest rate is 15%, what is the annual cash flow?
Sunblessed Juice Company sells bags of oranges and cartons of orange juice. Sunblessed grades oranges on a scale of 1 (poor) to 10 (excellent). At present, Sunblessed has 100,000 pounds of grade 9...
Clovis Company recently issued $500,000 (face value) bonds to finance a new construction project. The companys chief accountant prepared the following bond amortization schedule: Required: 1. Compute...
List the requirements of ISA(UK)550.
In planning the audit of accounts receivable, you decide to select accounts for confirmation using a variables estimation sampling plan. A major reason for your decision is the advantage of being...
On December 31, 2012, Ogallala Associates owned the following securities, held as a long-term investment. The securities are not held for influence or control of the investee. On December 31, 2012,...
Provide an explanation of the importance of workplace meetings and explanation regarding to the norms of meetings? What constitute the bad meeting, does it affect employees performance?
Blue Angel Investors has a success ratio of 10% with its venture funding. Blue Angel requires a rate of return of 20% for its portfolio of lending, and the average length on its loan is five years....
You are putting the final touches on the 2024 campaign for your client Discount Tires. In doing so, you are trying to decide if it makes sense to add spot media activity in Ann Arbor, MI where the...
The materiality calculation for Apollo Shoes seems appropriate, utilizing adjusted net income as the basis, adhering to a 5% threshold. This aligns with standard practices for profit-oriented...
Why should I pay 3 dollars per tutor if I have paid the hero subscription?
Discuss some of the accounting policy decisions and management decisions made by Office Equipment. Which of these should be cause for concern? Why?
On January 1, 2021 the Parent buys 80% of the Subsidiary for $1 million, $400,000 of Goodwill was generated in the transaction, there were no other bump-ups of assets or liabilities, the fair market...
what does the Luna County Sheriff's Department do and where does the funding come from?
Explain why the yield of a bond that trades at a discount exceeds the? bond's coupon rate. ?(Select the best choice? below.) A. The bond can be purchased for a discount, which gives it an "extra...
When is the indirect pattern appropriate, and what are the benefits of using it?
The following summary information is available regarding Robinson Sports Gear. The income statements are for the respective fiscal years, and the balance sheets are as of the end of each fiscal year....
Silberman Company transactions are listed below. Indicate the amount of revenue, expense, and cash flow that results from each. Use the format provided and place the appropriate amount in each...
Why does the FASB issue a discussion memorandum prior to releasing an exposure draft of a new pronouncement?
Determine the amplitudes of motion of the three masses in Fig. 6.40 when a harmonic force $F(t)=F_{0} \sin \omega t$ is applied to the lower left mass with \(m=1 \mathrm{~kg}, k=1000 \mathrm{~N} /...
(a) Determine the natural frequencies and mode shapes of the torsional system shown in Fig. 6.11 for $k_{t 1}=k_{t 2}=k_{t 3}=k_{t}$ and $J_{1}=J_{2}=J_{3}=J_{0}$. (b) If a torque $M_{t 3}(t)=$...
Using the results of Problems 6.24 and 6.56, determine the modal matrix $[X]$ of the system shown in Fig. 6.29 and derive the uncoupled equations of motion. Data From Problem 6.24:- Find the...

What is a present value of a stock, if the price for now is $40? Use a

Question:

Expert Answer:

Tutorial guide In the problem it is said that present value of a stock is to be comput... View the full answer

Financial Accounting Information For Decisions

Students also viewed these mathematics questions