Answer:

**Answer:**

**$196.91**

**Explanation:**

The computation of the current value is shown below:

D1 = ($2.4 × 1.17) = 2.808

D2 = ($2.808 × 1.17) = 3.28536

D3 = (3.28536 × 1.17) = 3.8438712

D4 = (3.8438712 × 1.17) = 4.4973293

Now

Value after year 4 is

**= (D4 × Growth rate) ÷ (Required return - Growth rate)**

= (4.4973293 × 1.06) ÷ (0.079 - 0.06)

= 250.903635

Now the current value is

**= Future dividend and value × Present value of discounting factor**

=$2.808 ÷ 1.079 + 3.28536 ÷ 1.079^2 + 3.8438712 ÷ 1.079^3 + 4.4973293 ÷ 1.079^4 + 250.903635 ÷ 1.079^4

= **$196.91**

Answer:
### Final answer:

### Explanation:

### Learn more about Stock Value Calculation here:

The current value of a share of Bell Weather Co.'s stock can be calculated using the Gordon Growth Model, which incorporates the dividend growth rate and the required rate of return. For the first four years, the annual dividend of $2.40 grows at 17 percent a year. From the fifth year onward, it would grow at a rate of 6% against a required rate of return of 7.90%.

Considering **Bell Weather Co.'s dividend growth**, we can calculate the present value of each future dividend and then sum those values to determine the **current stock price**. If the **annual dividend** of $2.40 is expected to grow by 17 percent a year for the next four years, and then drop to a growth rate of 6% per year, we can calculate the stock price based on the required rate of return of 7.90%. This is achieved by using the two-stage dividend discount model, also known as the Gordon Growth Model. This model takes into account the dividend growth rate and the required rate of return to find the stock price.

*For example, the dividends for the first four years would be D1 = 2.40*(1+0.17) = $2.808, D2 = 2.808*(1+0.17) = $3.285, D3 = 3.285*(1+0.17) = $3.844, D4 = 3.844*(1+0.17) = $4.495.*

The dividends from the fifth year onward would be growing at a consistent rate of 6%. The **value of the stock** would be the present value(sum) of these dividends, discounted back at the required return of 7.9%.

#SPJ13

You are a financial advisor at the bond dealer Dewey, Cheatem, and Howe. Your client has informed you that she is on the Board of Directors of a company that needs to buy some bonds, but is only allowed to purchase investment grade bonds. You recommend the D-rated bonds of Dry Wells Oil Exploration, Inc. because, although the par value of the bonds is $1000, the current market price is only $200. Which of the following statements is False? A. Your client will not be able to purchase these bonds B. Investors clearly believe this company is not in danger of bankruptcy C. You made a very recommendation D. The yield to maturity of these bonds is higher than the coupon rate

The net income reported on the income statement of Whispering Winds Corp. for the current year was $1251000. Depreciation recorded on plant assets was $236000. Accounts receivable and inventories increased by $66000 and $44000, respectively. Prepaid expenses and accounts payable decreased by $6000 and $61000, respectively. How much cash was provided by operating activities during the year

One year ago, the Jenkins Family Fun Center deposited $3,800 into an investment account for the purpose of buying new equipment four years from today. Today, they are adding another $5,600 to this account. They plan on making a final deposit of $7,800 to the account next year. How much will be available when they are ready to buy the equipment, assuming they earn a rate of return of 6 percent

A market segment is less attractive when ________. A) there are few aggressive competitors in the segmentB) it is difficult for new entrants to enter the segmentC) it contains powerful suppliers who can control pricesD) substitute products are unavailable in the segmentE) buyers in the market segment have weak bargaining powers

Tina is an expert gardener. she provides services like setting up new gardens, maintaining gardens, and landscaping. in the context of service processes, the services provided by tina come under the category of

The net income reported on the income statement of Whispering Winds Corp. for the current year was $1251000. Depreciation recorded on plant assets was $236000. Accounts receivable and inventories increased by $66000 and $44000, respectively. Prepaid expenses and accounts payable decreased by $6000 and $61000, respectively. How much cash was provided by operating activities during the year

One year ago, the Jenkins Family Fun Center deposited $3,800 into an investment account for the purpose of buying new equipment four years from today. Today, they are adding another $5,600 to this account. They plan on making a final deposit of $7,800 to the account next year. How much will be available when they are ready to buy the equipment, assuming they earn a rate of return of 6 percent

A market segment is less attractive when ________. A) there are few aggressive competitors in the segmentB) it is difficult for new entrants to enter the segmentC) it contains powerful suppliers who can control pricesD) substitute products are unavailable in the segmentE) buyers in the market segment have weak bargaining powers

Tina is an expert gardener. she provides services like setting up new gardens, maintaining gardens, and landscaping. in the context of service processes, the services provided by tina come under the category of

**Answer:**

The correct option is D, eight months for the first payment; six months for the second payment

**Explanation:**

From the information provided,it is very clear that interest payment would not made until January 1st 2021,which is 8 months after the date of bond issue.

This means that interest due on July 1st 2020 of two months would be paid together with that which becomes due on 1st January 2021 for six months,hence the first interest payment is for 8 months while the next one would the normal six-month cycle.

As a result,it is convincing enough that option D fits the explanation in all respects.

b. The product sold by one firm is a perfect substitute for the products sold by other firms in the same industry.

c. All the firms in the industry are the same size.

d. The product sold by one firm is a perfect complement for the products sold by other firms in the industry.

e. Firms in the industry can produce the same product with a different quantity of inputs.

**Answer:**

The correct answer is letter "**B**": **The product sold by one firm is a perfect substitute for the products sold by other firms in the same industry.**

**Explanation:**

**Homogeneous products** are those that cannot be differentiated one from another because they have similar features and satisfy the same need. They could even be sold at the same or nearly the same price. Under this scenario, these products are perfect substitutes from one another. Consumers will not be affected if one of the manufacturers decides to stop operations.

**I believe the answer would be $110,000; $50,000**

**Answer:**

increase

listening to the law when a supplier increases the price their supply increases the quality aswell!!

the answer would be increase for the blank spot

**Answer:**

**14.06%**

**Explanation:**

The computation of the cost of common equity using the DCF method is shown below:

**Cost of Common Equity = [Ending year dividend ÷ Price per share] + growth rate **

= [$2.31 ÷ $25.50] + 0.05

= **14.06%**

We simply applied the above formula by considering the ending year dividend, price and the growth rate so that the correct percentage could come

**Answer:**

**$800**

**Explanation:**

The computation of the remaining balance in the Prepaid Rent account after the adjustment was is shown below:-

**Remaining balance = Prepaid rent - Rent expense**

= $1,200 - ($1,200 × (1 ÷ 3))

= $1,200 - $400

= **$800**

Therefore for computing the remaining balance in the Prepaid Rent account we simply applied the above formula.

Sterling Company should debit** Rent Expense** and credit Prepaid Rent by $400 for April. The remaining balance in the Prepaid Rent account after the adjustment would be $800.

Sterling Company has prepaid its rent for 3 months, which means that $1,200 is paid for the months of April, May, and June. To calculate the monthly rent, divide the total by the number of months, so each month costs $1,200 / 3 = $400. Therefore, at the end of April, Sterling Company should debit Rent Expense and credit Prepaid Rent by $400 to account for the rent that expired during April. After this **transaction**, the balance in the Prepaid Rent account would be $1,200 - $400 = $800, which is the prepaid rent for May and June that is not used yet. The adjusting entry records the expiration of prepaid expenses and increases the accuracy of the financial statements.

#SPJ3