10. Calculate the closing percentage of the face value for a $3,000 bond with a closing price of $3,165.

If d0 = $1.75, g (which is constant) = 3.6%, and p0 = $40.00, what is the stock's expected total return for the coming year?

Orlov [11]

Answer:

The answer is <u>"a. 8.13%".</u>

Explanation:

Given that;

d0 = $1.75

p0 = $40.00

g = 3.6% = 0.036

By using the formula;

Price of the stock = (Dividend this year)(1+g) ÷ (r - g)

By putting the values;

40 = (1.75)(1+0.036) ÷ (r - 0.036)

r - 0.036 = (1.75)(1.036) ÷ 40

r - 0.036 = 1.813 ÷ 40

r - 0.036 = 0.045325

r = 0.045325 + 0.036

r = 0.081325 = 0.081325 x 100

4 0

4 years ago

Read 2 more answers

Bronn and Jaime make a written contract where Jaime will sell Bronn his armor and sword for $1,200.

satela [25.4K]

Answer: Mirror image rule

Explanation:

It should be noted that the contract formation defenses are fraud, illegality, incapacity, unconscionability, duress and statute of Frauds.

The mirror image rule is not among the defense to the formation of w contract. It implies that an offer should be accepted with no changes made to the offer.

8 0

3 years ago

On average, LB Inc. receives 138 payments each day with an average value of $42 each. These payments clear the bank in an averag

Oxana [17]

Answer: c) $7,535

Explanation:

The Collection Float refers to the time that it takes for a deposited check to become available to the account owner after the check has been deposited.

The Average amount is calculated thus;

= No. of payments * Clearing days * average value of payment

= 138 * 1.3 * 42

= $7,535

6 0

3 years ago

Given Ted can wax 4 cars per day or wash 2 cars per day and Tom can wax 3 cars per day or wash 1 car per day. What is each man’s

victus00 [196]

Answer:

OPPORTUNITY cost of Ted=2/4=0.5 car wash

OPPORTUNITY cost of Tom=1/3=0.33 car wash.

OPPORTUNITY cost is amount of other good given to produce more of one good.

Ted has absolute advantage.

Tom has comparative advantage.

Explanation:

See attached picture.

8 0

3 years ago

Gundy Company expects to produce 1,207,200 units of Product XX in 2017. Monthly production is expected to range from 75,600 to 1

kenny6666 [7]

Answer and Explanation:

The preparation of the flexible manufacturing budget is presented below:

Activity level

Finished units 75,600 96,600 117,600

(75,600 + 21,000)

Variable costs

Direct materials($3) $226,800 $289,800 $352,800

Direct labor ($7) $529,200 $676,200 $823,200

Overhead ($10) $756,000 $966,000 $1,176,000

Total variable costs $1,512000 $1,932,000 $2,352,000

Fixed costs

Depreciation [($4 × 1,207,200) ÷ 12] $402,400 $402,400 $402,400

Supervision [($1 × 1,207,200) ÷ 12] $100,600 $100,600 $100,600

Total fixed costs $503,000 $503,000 $503,000

Total costs $2,015,000 $2,435,000 $2,855,000

We simply added the total variable and total fixed cost so that the total cost could come and the same is shown above

5 0

3 years ago