DIVIDEND DISCOUNT MODEL Airbus pays dividends that are expected to grow at 7% each year. These will stop in year five, at which point the company will pay out all its earnings as dividends. It is expected that the dividend next year will be €10 and its earning per share (EPS) at the time will be €15.
a. If the appropriate discount rate on the shares of Airbus is 9%, what is its share price today?

b. If Airbus were to distribute all its earnings, it could maintain a level dividend stream of €15 per share. How much would the market pay per share for the firm?

c. Discuss the assumptions in calculating (a) and (b)?

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Transactions on april 1 of the current year, andrea byrd established a business to manage rental property. she completed the following transactions during april: opened a business bank account with a deposit of $45,000 from personal funds. purchased office supplies on account, $2,000. received cash from fees earned for managing rental property, $8,500. paid rent on office and equipment for the month, $5,000. paid creditors on account, $1,375. billed customers for fees earned for managing rental property, $11,250. paid automobile expenses for month, $840, and miscellaneous expenses, $900. paid office salaries, $3,600. determined that the cost of supplies on hand was $550; therefore, the cost of supplies used was $1,450. withdrew cash for personal use, $2,000. required: 1. indicate the effect of each transaction and the balances after each transaction: for those boxes in which no entry is required, leave the box blank. for those boxes in which you must enter subtractive or negative numbers use a minus sign. (example: -300)

Sonic corp. manufactures ski and snowboarding equipment. it has estimated that this year there will be substantial growth in its sales during the winter months. it approaches the bank for credit. what is the purpose of such credit known as? a. expansion b. inventory building c. debt management d. emergency maintenance