Higher stock valuation than the two-stage growth model

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1. The Housekeeping Department of Micanopy Hospital has direct costs of $600,000. The hospital's four patient service departments utilize the following amounts of space: Department A = 3,000 square feet, Department B = 2,000 square feet, Department C = 1,000 square feet, and Department D = 2,000 square feet. Assuming that the cost driver for housekeeping costs is the amount of occupied space, what is the allocation of housekeeping costs to Department A?

A. $250,000

B. $150,000

C. $175,000

D. $225,000

E. $325,000

2. To borrow $2,600, you are offered an add-on interest loan at 7 percent. Three loan payments are to be made, one at four months, another at eight months, and the last one at the end of the year. Compute the three equal payments.

Please post with how to do in Excel.

3. Does the H-Model gives a higher stock valuation than the two-stage growth model?

Reference no: EM132023564

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