Determining fair market price for the stock

Assignment Help Accounting Basics
Reference no: EM13144265

A particular common stock has an annual cash dividend of $2 per share and is predicted to have a market value of $30 per share 5 years from now. Assuming a discount rate of 10%, a fair market price for the stock today is:

Reference no: EM13144265

Questions Cloud

Professional interactive media developers : DIGIMAX Multimedia is a multimedia content development company would like to release various educational CD/DVD in the market. In this regards, the company wants to approach professional interactive media developers
Accounting for stockholders equity : Briefly describe some of the similarities and differences between U.S. GAAP and iGAAP with respect to the accounting for stockholders' equity.
Define what is the enthapy change needed to heat : what is the enthapy change needed to heat 1 kg of water at 0.4 MPa and 4°C to steam at 150°C and 0.4 MPa? b/ Does a state change from saturated vapor at 230°C to the state 100°C and 0.05 MPa represent an enthalpy increase or decrease?
List out parties who you believe are most responsible : The Enron debacle created what one public official reported was a "crisis of confidence" on the part of the public in the accounting profession. List out parties who you believe are most responsible for that crisis. Briefly justify each of your ch..
Determining fair market price for the stock : A particular common stock has an annual cash dividend of $2 per share and is predicted to have a market value of $30 per share 5 years from now. Assuming a discount rate of 10%, a fair market price for the stock today is:
Impact on consolidated financial statements : Which of the following describes the impact on consolidated financial statements of upstream and downstream transfers?
Estimate the cost of the merchandise inventory as of july : During July, the first month of the fiscal year, sales totaled $900,000 and the cost of merchandise available for sale totaled $800,000. Estimate the cost of the merchandise inventory as of July 31, based on an estimated gross profit rate of 40%..
What type of fund should st. george county use to account : What type of fund should St. George County use to account for the retained percentage? Explain your answer.
Define rubber is worn off an automobile tire : cubic centimeter of rubber is worn off an automobile tire with each revolution of the wheel?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Selling the assets and paying the liabilities

After selling the assets and paying the liabilities, the partnership has cash of $92,000. How much cash will each partner receive in the final liquidation?

  Problem related to installment sales

Newton Co. had installment sales of $1,000,000 and cost of installment sales of $700,000 in 2010. A 2010 sale resulted in a default in 2012, at which time the balance of the installment receivable was $30,ooo. The repossessed merchandise had a fai..

  What is neary capital balance after kansas investment

The capital balance for Bolcar is $110,000 and for Neary is $40,000. These two partners share profits and losses 70 percent (Bolcar) and 30 percent (Neary). Kansas invests $50,000 in cash into the partnership for a 30 percent ownership. The bonus ..

  Investments in equity securitie

Describe how investors report investments in equity securities when investor has controlling influence over an investee. (US GAAP)

  Find variety of customers across the united states

Print it Green, Inc. is a manufacturer of recycled printing supplies. The company began operations on 10/1/2008 and is dedicated to producing sustainable green printing products. Print it Green, Inc. provides recycled laser toner cartridges, recyc..

  What amount would be reported as the total payroll costs

Lightning Electronics is a midsize manufacturer of lithium batteries. The company's payroll records for the November 1-14 pay period show that employees earned wages totaling $100,000 but that employee income taxes totaling $14,000 and FICA taxes ..

  Decision problem of lakewood fashions

Lakewood Fashions must decide how many lots of assorted ski wear to order for its three stores. Information on pricing, sales, and inventory costs has led to the following payoff table, in thousands.

  Units of production and an estimated residual value

Al's Car Wash purchased a piece of equipment on October 1, 20x7, for $27,000. The equipment has an estimated life of four years or 40,000 units of production and an estimated residual value of $2,000.

  Manufacturing needs or selling product

Market conditions are such that sales made internally or externally will not affect market or transfer prices. Intermediate markets will always be available for Bayside, Cole, and Diamond to purchase their manufacturing needs or sell their product..

  Governmental funds statement of revenues

A government had the following transfers reported in its governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances:

  Complete a common-sized income statement

Complete a common-sized income statement, a common-sized balance sheet, and a statement of cash flows for 2010. Interpret your results.

  Concept of allowance for doubtful accounts

Determine the amount to be added to Allowance for Doubtful accounts in each of the following cases. (a) Balance of $500 in the allowance account just prior to adjustment. Analysis of accounts receivable indicates doubtful accounts of $9,500.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd