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Compute what is the amount of depreciation in year one

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Reference no: EM132726407

Problem 1: A machine with a purchase price of $6,000 is to be depreciated over its useful working life of 10 years to a book value of zero, using diminishing value depreciation. What is the amount of depreciation in Year 1?

Select one:

a. $1200
b. $1100
c. $600
d. $300

Problem 2: A share is expected to pay an annual dividend of $2.42 next year, and this dividend is then expected to grow at a constant rate of 2.2% p.a. in perpetuity. If the required rate of return is 11.2% p.a., what is the value of the share?

Select one:

a. $21.61
b. $23.71
c. $26.89
d. $27.48

Reference no: EM132726407

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