If you have contacted a seller to report a problem with a product and you were ignored, what should you do next?

Suppose you know that a companyâ€™s stock currently sells for $55 per share and the required return on the stock is 8 percent. Y

inysia [295]

Answer:

Dividend per share $ 2.16

Explanation:

Return = Dividend yield + Capital gains yield = 0.08

Dividend yield = Capital gains yield

Div yield 0.08 / 2 = 0.04

Next year dividend:

share Price x dividend yield

$ 55 x 0.04 = $2.2

<u>Current dividend:</u>

We remove the grow factor from next year dividend:

2.2 / (1+0.04) = 2,11538

8 0

4 years ago

Read 2 more answers

Targaryen Corporation has a target capital structure of 65 percent common stock, 5 percent preferred stock, and 30 percent debt.

Juli2301 [7.4K]

Answer:

a. What is the company’s WACC?

R_Wacc = 13% (65%) + 5% (5%) + 6% (30%) * (1-0,25) = 10,05%

b. What is the aftertax cost of debt?

The aftertax cost of debt is:

R_Debt : (1 - 0,25) x 6% = 4,50%

Explanation:

The WACC it's defined by the formula :

WACC: E/V*Re + D/V*Rd *(1-0,25)

Re: 13,00% Cost of Common Equity

Re: 5,00% Cost of Preferred STOCK

Re: 6% Cost of Debt

E/V: 65% Percentage of financing that is Common Equity

PS/V: 5% Percentage of financing that is Preferred Stock

DB/V: 30% Percentage of financing that is Debt

Tax: 25% Corporate tax rate

Now we have all of the components to calculate the WACC.

The WACC is:

R_Wacc = 13% (65%) + 5% (5%) + 6% (30%)*(1-0,25) = 10,05%

The aftertax cost of debt is:

R_Debt : (1 - 0,25) x 6% = 4,50%

5 0

3 years ago

1. Prepare journal entries to record the following hypothetical 2006 events:a. A customer deposits $50,000 in WaMu savings accou

BARSIC [14]

Answer:

1. A. Dr Cash 50,000

Cr Customers Saving Account 50,000

B.Dr Interest Expense 125

Cr Cash 125

C. Dr Loan Receivables 50,000

Cr Cash 50,000

D. Dr Interest Receivables 750

Cr Interest Income 750

2. $625

Explanation:

Answer and Explanation:

1. Preparation of journal entries

a. In a situation where A customer made deposits of the amount of $50,000 in WaMu savings account on 1/1/2006 the Journal entry will be:

Dr Cash 50,000

Cr Customers Saving Account 50,000

(Being to record the deposit from customers)

b. In a situation where WaMu pays a 1% as annual interest on the deposit on 3/31/06 the journal entry will be:

Dr Interest Expense 125

(50,000*1%*3/12)

Cr Cash 125

(Being to record the payment of interest Expense)

c. In a situation where WaMu lends out the

amount of $50,000 to another customer the Journal entry will be:

Dr Loan Receivables 50,000

Cr Cash 50,000

(Being to record the receivable lent to customers)

d. In a situation where WaMu accrues interest on this date 3/31/06 the journal entry will be:

Dr Interest Receivables 750

(50,000*6%*3/12)

Cr Interest Income 750

(Being to record the interest accrued)

2. Calculation for How much net interest income (profit) did WaMu earn in the first quarter

First step is to calculate the Net Interest Rate

Interest Rate on Receivables 6%

Less Interest Rate on Payable 1%

Net Interest Rate 5%

Second Step will be to calculate the Annual Net Interest

Using this formula

Annual Net Interest=Principal *Net Interest Rate

Let plug in the formula

Annual Net Interest=50,000*5%

Annual Net Interest= 2,500

Last step is to calculate the first quarter net interest income

Using this formula

First quarter net interest income=Time*Annual Net Interest

Let plug in the formula

First quarter net interest income= 3/12*2,500

First quarter net interest income= $625

Therefore the First quarter net interest income will be $625

7 0

3 years ago

Beginning WIP is 45% complete and ending WIP is 10% complete as to conversion costs. Materials are added at the beginning of the

lara [203]

Answer:

c. none of these

units started into the process this period plus units in beginning inventory

Explanation:

In FIFO , the physical units are divided between the beginning units, units started in process and the ending units. But as all the materials is added at the beginning of the process so the FIFO physical units would be divided between the units started into the process this period plus units in beginning inventory and hence the equivalent units for materials will be calculated.

So the best choice is option c.

5 0

3 years ago

Which of the following statements is most correct? A. KSFs are often necessary, but not sufficient for competitive advantage.B

anzhelika [568]

Answer:

A. KSFs are often necessary, but not sufficient for competitive advantage.

Explanation:

KSF

Key Success Factors (KSFs) represent business functions, practices or business activities as defined or seen by the customers or the market as being important or crucial to the development of consumer/business relationship.

KSFs represent areas organisations are to attend to based on the views of the market in order to achieve their goals. It could be in form strengths to maximize, weaknesses to address, aspects to take advantage of among others.

It becomes obvious that although important (from the view of the market or consumers who patronize the business), a business must makes its own due diligence in form of SWOT analysis among others to have the required competitive advantage.

4 0

4 years ago