The balance in the supplies account before adjustment at the end of the year is $6,469. The proper adjusting entry if the amount of supplies on hand at the end of the year is $1,685 would be a.debit Supplies Expense, $1,685; credit Supplies, $1,685 b.debit Supplies, $4,784; credit Supplies Expense, $4,784 c.debit Supplies, $1,685; credit Supplies Expense, $1,685 d.debit Supplies Expense, $4,784; credit Supplies, $4,784.

1. The Bondurant Corporation just paid a dividend (D
0
) of $2.50.
1. Five years ago, the company paid a dividend of $2.00 and we note that the growth in those five
years was essentially constant each year. Based on this historical dividend growth, if you believe
the company will continue with the same growth pattern indefinitely, what is the growth rate (g)?
Hint: calculate the compound annual growth rate over the past five years and use that for g going
forward.
2. Based on the above information please calculate:
D
1
D
2
D
3
3. Now, calculate P
0,
assuming the required rate of return is 10%.
4. Calculate the expected dividend-yield and capital-gain-yield components of the expected total
return.
5. Calculate P
1
using two different approaches referenced in WJLs presentation.
6. Now, there is a possibility that the growth will be 11% for three years going forward and will
revert to the growth rate calculated above, thereafter.
Calculate:
D
1
D
2
D
3
D
4
7. What is P
0
(there are a couple of different models you can useone or the other will suffice)?
8. Calculate the dividend yield and the capital-gains yield during the first year, given the
information in problem 6.
9. Calculate P
1
given the information in problem 6.