Arthur Anderson's accounting business was found guilty of obstructing justice, which is an example of corporate crime.
Corporate crime, also known as organizational crime, is a sort of white-collar crime committed by people while they are performing their legal jobs for the advantage of the company that employs them. These people typically do not believe themselves to be criminals or that their actions are criminal. Professional white-collar crime, which is done by persons who identify with crime and make it their only source of income, is connected to corporate crime. White-collar crime, a more general notion, was first articulated in the social sciences by American criminologist Edwin Sutherland in a 1939 presidential address to the American Sociological Association. This is where the roots of corporate crime may be found.
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Inflation can cause difficulty in many ways. Which group would have the greatest problem during periods of high inflation?
Answer:
Inflation can cause difficulty in many ways. Which group would have the greatest problem during periods of high inflation that last several years? Older, working couples saving for retirement. Older people living on fixed retirement income.
Deanna purchased $24,000 worth of stock and paid her broker a 1% broker fee. She sold the stock when it increased to $29,100 three years later and used a discount broker who charged $35 per trade. Compute her net proceeds after the broker fees were taken out
Answer:
Here:
Explanation:
Purchase price of shares = 24000
total purchase cost = price of shares bought + broker fees total purchase cost = 24000 + 0.01*24000 =24240
selling price of shares = 29100
total selling cost = price of shares sold - broker fees total selling cost = 29100 - 35 = 29065
Net proceeeds = total selling cost - total purchase cost Net proceeds = 29065 - 24240 = 4825
Ford Motor Company is discussing new ways to recapitalize the firm and raise additional capital. Its current capital structure has a 10% weight in equity, 25% in preferred stock, and 65% in debt. The cost of equity capital is 17%, the cost of preferred stock is 11%, and the pretax cost of debt is 9%. What is the weighted average cost of capital for Ford if its marginal tax rate is 40%?
The weighted average cost of capital for Ford if its marginal tax rate is 40% is given by the terms as 8.98%.
Weighted average cost of capital for Ford with a marginal tax rate of 40%The weighted average cost of capital for Ford with a marginal tax rate of 40% is 8.98%. Weighted Average Cost of Capital (WACC) is the weighted average of the costs of all the sources of capital used by a firm, which is adjusted for tax benefits.
The formula for WACC is
WACC = ((E/V) x Re) + [((D/V) x Rd) x (1-T)] + [((P/V) x Rp)]
Where Re, Rd, and Rp are the costs of equity, debt, and preferred stock, respectively, V is the total value of the firm, E, D, and P are the market values of equity, debt, and preferred stock, and T is the marginal tax rate of the company.
Weight of equity = 10%
Weight of preferred stock = 25%
Weight of debt = 65%Cost of equity = 17%
Cost of preferred stock = 11%
Cost of debt = 9%
Marginal tax rate = 40%
Total weight of all capital components = 10% + 25% + 65% = 100%
The cost of debt is the pretax cost, but we need to use the after-tax cost of debt in the WACC formula. Therefore, first, we will calculate the after-tax cost of debt.
After-tax cost of debt = Pretax cost of debt x (1 - Marginal tax rate)
After-tax cost of debt = 9% x (1 - 0.4)
After-tax cost of debt = 5.4%.
Now, we can plug all the values into the WACC formula and calculate the WACC for Ford.
WACC = ((E/V) x Re) + [((D/V) x Rd) x (1-T)] + [((P/V) x Rp)]
WACC = [(0.1 x 0.17) + (0.25 x 0.11) + (0.65 x 0.054)] x 100%
WACC = 8.98%
Therefore, the weighted average cost of capital for Ford with a marginal tax rate of 40% is 8.98%.
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is 6 ft greater than 72 inches
Over your lifetime, as a driver, it is estimated that you will
A. Most likely never be in a car accident
B. Be in one car accident
C. Be in two car accidents
D. Be in three to four car accidents
Answer:
The average is about three to four car accidents in their lifetime. Thats about 1 car accident every 18 years.
Explanation:
D is the correct option
Money you pay up front to reduce the amount you will owe is called a
A. fixed loan
B. late payment
C. down payment
D. short-term loan
Answer:
down payment
Explanation:
A down payment is money paid upfront in a financial transaction, such as the purchase of a home or car. Buyers often take out loans to finance the remainder of the purchase price.
Answer:
down payment
Explanation:
refer to figure 4-7. at a price of $35, there would be a a. surplus of 200 units. b. surplus of 400 units. c. surplus of 600 units. d. shortage of 400 units.
c.) there would be a surplus of 400 units, please see figure 4-7. There would be an excess of 400 units at a $35 pricing. To prevent excessive surpluses and maintain a balance between supply and demand.
An overstock of 400 units of a certain item or service at a price of $35 indicates that there is an excess of that good or service on the market. A decline in product demand, a rise in output, or a change in market circumstances are just a few causes for this to happen. There may be a surplus of unsold inventory or lower pricing as a result of producers competing to sell their products when there is an excess of supply. Producers may lose money as a result, and there may also be a decline in general economic activity. Producers should keep a careful eye on the state of the market.
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an agency problem is prone to exist in public corporations because: group of answer choices some owners are also company employees. of the size of the operations. managers tend to be long-term employees. management is frequently separated from ownership. operations are frequently spread over various geographic locations.
An agency problem is prone to exist in public corporations because management is frequently separated from ownership. Option d is correct.
In public corporations, the owners (shareholders) are separate from the management of the company. The shareholders elect a board of directors, who are responsible for overseeing the management of the company. The board of directors, in turn, hires the executives and managers who run the day-to-day operations of the company.
This separation of ownership and management can create an agency problem. The managers may have different goals and incentives than the shareholders, which can lead to conflicts of interest. For example, managers may prioritize their own interests or the interests of other stakeholders (such as employees or suppliers) over the interests of the shareholders.
This can result in actions that are not in the best interests of the shareholders, such as excessive executive compensation, wasteful spending, or pursuing projects that do not generate sufficient returns. These actions can reduce the value of the company and harm the shareholders. Option d is correct.
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2. What does AOC stand for?
d. Area of Concentration
c. Area of Careers
b. Awareness of Careers
na Awareness of College
Answer:
The answer is D. Area of Concentration
Explanation:
Area of concentration (AOC) must be listed along with a skill identifier (if applicable) and listed as the primary specialty.
the safety products division is currently purchasing 3,000 of these sensors per year from an overseas supplier at a cost of $59 per sensor.assume that the sensor division is selling all of the sensors it can produce to outside customers. what should be the minimum acceptable transfer price for the sensors from the standpoint of the sensor division?
The Sensor Division should not transfer the sensors to the Safety Products Division for a price lower than $60 per sensor to maintain profitability.
Assuming the Safety Products Division is currently purchasing all 3,000 sensors per year from the overseas supplier at a cost of $59 per sensor, the relevant cost for the Sensor Division is the variable cost of producing each sensor. Let's assume that the variable cost per sensor is $40.
The opportunity cost for the Sensor Division is the contribution margin it could earn by selling each sensor to outside customers instead of transferring them to the Safety Products Division. Let's assume that the contribution margin per sensor is $20.
Therefore, the minimum acceptable transfer price for the sensors would be the sum of the relevant cost and the opportunity cost:
Minimum acceptable transfer price = Relevant cost + Opportunity cost
Minimum acceptable transfer price = $40 + $20
Minimum acceptable transfer price = $60
Thus, the Sensor Division should not transfer the sensors to the Safety Products Division for a price lower than $60 per sensor to maintain profitability.
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Which of the following is a disadvantage to Linux?
Olearning curve
O customizability
O cost
Ofreedom
Answer:
Learning curve
Explanation:
Suppose that the ABC bank has a total amount of 2040 KWD in the checkable deposits accounts. The required reserve ratio set by the central bank is 8%. What is the minimum amount that the bank should keep in reserve:
To determine the minimum amount that the ABC bank should keep in reserve, we need to calculate the required reserves based on the given required reserve ratio.
The required reserve ratio is the percentage of checkable deposits that banks are required to hold as reserves. In this case, the required reserve ratio is 8%.
To find the minimum reserve requirement, we can multiply the checkable deposits by the required reserve ratio:
Minimum Reserve Requirement = Checkable Deposits * Required Reserve Ratio
In this case, the checkable deposits amount is 2040 KWD, and the required reserve ratio is 8% (or 0.08 as a decimal):
Minimum Reserve Requirement = 2040 KWD * 0.08 = 163.2 KWD
Therefore, the minimum amount that the ABC bank should keep in reserve is 163.2 KWD. This represents 8% of the total checkable deposits held by the bank, as mandated by the required reserve ratio set by the central bank.
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PLEASE HELP WILL MARK AS BRAINLIEST ITS URGENT
what challenges to your monthly budget do you except if you have a spouse and children to your life?
Answer:
If you have a spouse and children, there can be several challenges to your monthly budget, including:
Increased expenses: The addition of more people in your family means an increase in expenses, including food, clothing, housing, and healthcare.
Childcare costs: If both you and your spouse work, you may need to pay for childcare, which can be a significant expense.
Education expenses: As your children grow up, they may need to attend school or college, which can be expensive.
Unforeseen expenses: With more people in your family, there may be more unforeseen expenses, such as medical emergencies or car repairs.
Saving for the future: When you have a family, it is important to save for the future, including retirement and your children's education.
To manage these challenges, it is important to create a realistic monthly budget that takes into account all the expenses associated with having a family. You may also need to make some lifestyle adjustments, such as eating out less or finding ways to reduce your energy bills, to help you stay within your budget.
Explanation:
When planning a trip to Spain, Brett and his wife, both Americans, were concerned about how much they could afford to spend in Europe because sometimes the U.S. dollar will buy more goods and sometimes it will buy less, based on changing economic conditions. The ________ rate is the rate at which the currency of one area or country can be exchanged for the currency of another's. Group of answer choices transaction dividend exchange international fluctuation
Answer: Exchange
Explanation:
There are different currencies in the world used by different countries. We still need to trade with each other however so there must be a way for us to use our money to buy a good in a country with another currency.
We can do so by exchanging currency at a certain rate known as the exchange rate which is the rate that we can change a unit of one currency to another currency. This rate reflects the relative demand and supply factors of the various currencies such that one currency will be stronger or weaker than the other.
Paris 21 co. Sold land to its 100% owned owned subsidiary. If the land is sold for a gain, from the consolidated view, when does paris 21 co recognize the gain? g
To calculate the income statement NCI, multiply the subsidiary's net income by the NCI percentage.
Example: If an organization owns 70% of his subsidiary, a minority partner owns 30% of him, and the subsidiary has a net income of $1 million. Non-controlling interest is calculated as $1 million x 30% = $300,000. A non-controlling interest (NCI) is an ownership interest of less than 50% in a company that gives investors little control over how the company operates due to the equity interest they hold. The voting percentage is used to determine if an investor has her NCI. Consolidated financial statements are prepared by each parent company that owns one or more subsidiaries.
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which of the following policies are consistent with the goal of increasing productivity and growth in developing countries? check all that apply. increasing taxes on income from savings providing tax breaks and patents for firms that pu
The policies consistent with the goal of increasing productivity and growth in developing countries are:
- providing tax breaks and patents for firms that innovate
Providing tax breaks and patents for firms that innovate encourages investment in research and development, which can lead to technological advancements and increased productivity. This policy promotes innovation-driven growth and incentivizes firms to invest in improving their processes, products, and services.
On the other hand, increasing taxes on income from savings can have a negative impact on productivity and growth. Higher taxes on savings reduce the incentive for individuals and businesses to save and invest, which can limit capital accumulation and hinder economic growth.
Therefore, out of the two options provided, only providing tax breaks and patents for firms that innovate is consistent with the goal of increasing productivity and growth in developing countries.
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What advice have you heard or been given about buying cars?
Which accounting concept is used in each of the following accounting treatment?
The cost of a tape dispenser has been charged to an expense account, although in fact it could still be in use in ten years’ time.
A sole proprietor has sold his private house, but has not recorded anything about it in the business records.
A debt has been written off as a bad debt even though there is still a chance that the debtor eventually may be able to pay it.
A machine has been bought for an exceedingly low figure,and it has been entered in the asset account at that figure even though it is worth more.
A motor van broke down in December , 2017. The repair bill for it was not until 2018 yet it has been treated as a 2017 expense.
The accounting concepts that provide guidance for recording the following business events are as follows. The business transactions are numbered from (a) to (e) below:
1) Materiality Concept is applied because the impact of the cost of the tape dispenser being "expensed" is not significant on the reader of the financial statement.
2) Entity Concept requires separation between the finances of the owner from the finances of the business. The business is a separate economic unit distinct from the sole proprietor.
3) Prudence Concept demands that expenses (like the bad debt written off) and liabilities are not underestimated and revenues and assets should not be overestimated.
4) Historical Cost Concept: Generally accepted accounting principles require the initial recognition of an asset at its purchase cost and not fair value.
5) Accrual Concept and Matching Principle: The accrual concept requires that expenses that have been incurred for a period should be accounted for in that period, whether cash payment is made or not. The matching principle states that expenses (Van Repair Expense) should be matched to the revenue that they generate.
Thus, accounting concepts are the basic assumptions, rule, and principles for recording business transactions and events and preparing accounts and financial statements.
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Florence deposits 6000 in an ordinary annuity at the end of each quarter in an account earning 6 percent interest coumpund
The future value of the account in 2 years will be $19,101.6. if Florence deposits $6000 in an ordinary annuity at the end of each quarter in an account earning 6% interest compound.
The given data is as follows:
deposits money = $6000
interest compound = 6%
Time peroid = 2Years
Future value also called Ordinary Annuity is a term used to explain at some coming date and with a shared interest rate, a sequence of normal prices will be worth it.
The Future Value is calculated by using the formula:
FV = C [{ (1+i)^n - 1}/i]
Future Value = 6000 [{ (1+i)²- 1}/0.06]
Future Value = 6000 [(1.06)² - 1]/0.06
Future Value = 6000 [1.191016 - 1]/0.06
Future Value = 6000 x (0.191016/0.06)
Future Value = 6000 x 3.1836
Future Value = $19,101.6
Therefore, we can conclude that the future value of the account in 2 years will be $19,101.6.
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The complete question is-
Florence deposits 6000 in an ordinary annuity at the end of each quarter in an account earning a 6 percent interest compound. What is the future value of the account in 2 years?
Answer:
$6021.60
Explanation:
6000+(6000×0.6^2)
=6000+21.6
=6021.
COVID-19 and the resulting shutdowns and mask mandates had dramatic impacts on most businesses, resulting in contractions of many but expansion for others. The pandemic and related restrictions would be considered Mutipie Choice a. a maket effect b. social responsibint. c. tene volve of money.
d. an emvironthemail torce e. tive intangitio ecwironment
The COVID-19 pandemic and related restrictions would be considered a social responsibility. Option b.
The COVID-19 pandemic and related restrictions can be seen as a social responsibility for governments and organizations. It is their responsibility to ensure that these restrictions are implemented in a way that is fair, equitable, and financially viable for all citizens, while still maintaining the health and safety of all citizens. Hence, option B is correct.
The COVID-19 pandemic has brought new challenges to our society, and the restrictions put in place to protect public health are a social responsibility. In a time where physical contact and social gatherings must be limited, it is up to us to take the necessary steps to ensure the safety and well-being of our community.
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Upload your Environmental Regulations project below.
Answer:
Environmental regulations are government policies and laws that aim to protect the environment and human health by controlling and minimizing the release of harmful pollutants and substances into the air, water, and land. These regulations can take the form of standards, guidelines, or restrictions that are designed to reduce the negative impacts of human activities on the environment.
Here are some examples of environmental regulations:
Clean Air Act: This act regulates the emissions of air pollutants from both stationary sources (such as factories and power plants) and mobile sources (such as cars and trucks). It also sets standards for air quality and requires the EPA to monitor and report on air pollution levels.
Clean Water Act: This act regulates the discharge of pollutants into the nation's surface waters, such as lakes, rivers, and streams, and sets water quality standards. It also requires permits for certain discharges and provides for enforcement of the standards.
Resource Conservation and Recovery Act (RCRA): This act regulates the management of hazardous and non-hazardous solid waste, including the treatment, storage, and disposal of these wastes.
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA, or "Superfund"): This act provides for the cleanup of hazardous waste sites and holds responsible parties accountable for the costs of the cleanup.
Endangered Species Act: This act protects endangered and threatened species and their habitats by regulating activities that may harm them.
The implementation and enforcement of environmental regulations is usually the responsibility of environmental agencies, such as the Environmental Protection Agency (EPA) in the United States.
Overall, environmental regulations play a crucial role in protecting the environment and public health, and are essential for ensuring that human activities are carried out in a sustainable manner.
Structured decisions are made frequently and are almost repetitive in nature; they affect short-term business strategies.
Employees at the managerial level are constantly assessing how well the business is doing in order to improve its capacity to recognize, adapt to, and take advantage of change.
What is an organized decision-making process?An strategy for thorough and coordinated study of natural resource management decisions is structured decision making. SDM includes a straightforward collection of ideas and practical methods rather than a tightly predetermined approach to issue solving.
What traits distinguish structured decisions?On the other hand, organized decisions are routine and recurring, and decision-makers might be successful by handling them in accordance with a predetermined method. Semistructured judgements are ones in which just a portion of the issue has a definite solution offered by a recognised process.
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Place the steps to creating a budget in order:
Figure out your net income.
Make a list of fixed expenses
Make a list of variable expenses.
Adjust expenses as needed
Determine if you have enough income to cover all your expenses.
Answer:
1. Figure out your net income
2. Determine if you have enough income to cover all your expenses
3. make list of variable expense
4. make list of fixed expenses
5. adjust expense
done !
What factors caused the great depression to spread around the world? select three answers.
a. americans stopped buying from overseas nations.
b. large numbers of jobless americans moved overseas.
c. many countries raised tariffs on imported goods.
d. stock markets started to crash in many other nations.
e. americans demanded repayment of european loans.
The factors that caused the great depression to spread around the world are (a) .Americans stopped buying from overseas nations.
Many nations increased import duties. Americans insisted that European debts be repaid. The Great Depression, which lasted from 1929 to 1939, was the worst economic downturn in the history of the industrialized world. It started after the 1929 stock market catastrophe, which paralysed Wall Street and caused the loss of millions of investors.
The Federal Reserve had previously led to banks becoming less eager to lend money to the general public. Earlier, the stock market also experienced a dip.
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Answer:
A.) Americans stopped buying from overseas nations.
C.) Many countries raised tariffs on imported goods.
E.) Americans demanded repayment of European loans.
Explanation:
edge
The _______ system gives both producers and consumers important information they use in making decisions about how to allocate their resources and is determined by forces of supply and demand.
1.) profit
2.)none of the above
3.)price
At a time of mergers and acquisitions, managers are often asked to evaluate the merits of purchasing a company as a subsidiary of their firm. This was the case with Cisco Systems and KPMG Peat Marwick. Cisco Systems is a well-capitalized company, which specializes in Internet equipment design and manufacturing. Cisco has used its wealth to purchase other companies to fulfill longer-term corporate and market strategies. Cisco needed management consulting expertise to help customers to implement Cisco products. KPMG is a recognized leader in the management consulting industry. Rather than build a division of management consulting for its Internet network services businesses, Cisco chose to buy KPMG instead.
Identify and briefly explain the strategic purpose for Cisco’s decision to buy KPMG.
Provide a list of what a Cisco executive would need to consider to determine the value of KPMG in order to complete this merger.
What is the current market outlook (2022) for Cisco Systems? Provide reference.
In your view, was this a successful acquisition? Why?
Strategic purpose for Cisco's decision to buy KPMGCisco Systems is known for its focus on Internet equipment design and manufacturing. The company has been using its large capital base to acquire other firms that meet its long-term market and corporate objectives.
Cisco was seeking management consulting services to help its customers in the implementation of Cisco products. KPMG is an established leader in the management consulting sector, and Cisco chose to acquire KPMG rather than creating a management consulting division for its Internet network services business.The strategic goal for Cisco was to provide a diverse range of services to its clients. It aims to strengthen its capabilities in networking and security, and gain a foothold in the market for consulting services. By acquiring KPMG, Cisco increased its capabilities in consulting, which helped them to offer a full suite of services to their customers. The acquisition enabled the company to deliver end-to-end services, which differentiated the firm from its competitors.What a Cisco executive would need to consider to determine the value of KPMG in order to complete this merger?A Cisco executive would need to consider the following to determine the value of KPMG in order to complete the merger:Valuation of the target companySynergies from the mergerCost of the acquisition and related financingIntegration issuesMarket share in the target's industryManagement and employee issuesLegal, accounting, and regulatory issuesWhat is the current market outlook (2022) for Cisco Systems?Cisco Systems Inc. is an American multinational corporation that designs, manufactures, and sells Internet Protocol (IP)-based networking and other products for communication and IT industries. As of August 2021, Cisco's market capitalization was $225.64 billion. According to MarketWatch, the 12-month stock price forecast for Cisco is $59.64, representing a 5.29% increase from the current price. In general, the outlook for Cisco is optimistic.In your view, was this a successful acquisition? Why?Yes, this was a successful acquisition. Because the acquisition of KPMG by Cisco gave them the ability to offer comprehensive services to their clients, which distinguished the company from its competitors. This has helped Cisco in achieving its long-term corporate and market strategies.
Cisco's decision to acquire KPMG was aimed at diversifying its service offering, which helped the company to gain a competitive advantage in the market. To determine the value of KPMG, Cisco executives would need to consider the valuation of the target company, the cost of the acquisition, and related financing, management and employee issues, legal, accounting, and regulatory issues, among others. The current market outlook for Cisco is optimistic, and the outlook is predicted to remain positive in the future. In conclusion, the acquisition of KPMG by Cisco was successful, as it enabled the company to achieve its long-term market and corporate objectives.
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bzzagent mini case: bzzagent is a word-of-mouth marketing agency that runs brand advocate programs for global brands. it recently partnered with a company to pair its social media and word-of-mouth insights with shopper loyalty data. the results indicated that consumers who were making repeat purchases were also more engaged and created a higher volume of advocacy. the information from this study is important to marketers, who are trying to find ways to engage advocates and influencers, especially via social media. marketers are trying to figure out the characteristics of individuals who are most likely to influence others. in the bzzagent mini case, marketers are interested in finding individuals who influence others. the process by which one influential person informally influences the actions or attitudes of others is known as . question 28 options: a) referencing b) opinion leadership c) blogging d) positioning e) targeting
Marketers are searching for people who have sway over others in the BZZAGENT MINI CASE. Opinion leadership is the method by which one powerful individual subtly shapes the behaviors or attitudes of others.
The act of interpreting media messages or content for less sophisticated media users is known as opinion leadership. Usually, individuals who agree with opinion leaders hold them in high regard. The two-step communication flow idea put forward by Paul Lazarsfeld and Elihu Katz is where opinion leadership originates. Robert K. Merton, C. Wright Mills, and Bernard Berelson were significant contributors to the development of the opinion leader concept. The diffusion of innovations, concepts, or commercial goods is attempted to be explained by a number of models, some of which include this hypothesis.
Because we frequently ask for advice from others in a social setting, opinion leaders play a crucial part in information flow. The target audiences do not directly receive information from the media.
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A traditional store selling products
Answer:
Bricks and mortar is your answer.
Explanation:
A company currently pays a dividend of $1 per share (D0 = $1). It is estimated that the company's dividend will grow at a rate of 15% per year for the next 2 years and then at a constant rate of 7% thereafter. The company's stock has a beta of 1.3, the risk-free rate is 7.5%, and the market risk premium is 3.5%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent
Given that the company currently pays a dividend of $1 per share (D0 = $1). It is estimated that the company's dividend will grow at a rate of 15% per year for the next 2 years and then at a constant rate of 7% thereafter. The company's stock has a beta of 1.3, the risk-free rate is 7.5%,
the market risk premium is 3.5%.To find out the estimate of the stock's current price, we need to calculate the main answer of the problem.Step 1:Calculate the dividends for the next 2 years:Year 1 dividend = D1 = D0 (1 + g) = $1 * (1 + 15%) = $1.15Year 2 dividend = D2 = D1 (1 + g) = $1.15 * (1 + 15%) = $1.32Step 2:Calculate the dividend at the end of year 2 present value at the end of year 2 using the constant growth formula:
Using the formula for Gordon growth model,PV = D3 / (r - g)D3 = D2 (1 + g) = $1.32 (1 + 7%) = $1.41r = Rf + β × (Rm - Rf) = 7.5% + 1.3 × 3.5% = 12.05%g = 7%Using these values, we get, PV(D3) = $1.41 / (12.05% - 7%) = $28.20Step 3:Find out the present value of dividends for the next 2 years by using the formula,Present value of dividend = D1 / (1 + r) + D2 / (1 + r)²PVD = $1.15 / (1 + 12.05%) + $1.32 / (1 + 12.05%)²PVD = $2.09Step 4:Calculate the estimated price of the stock using the formula for the price of the stock as the present value of dividends + present value of dividend at the end of year 2PVPS = PVD + PV(D3)PVPS = $2.09 + $28.20 = $30.29Therefore, the estimated price of the stock is $30.29 (rounded to the nearest cent).Hence, the main answer is $30.29.
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