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Tasya [4]
2 years ago
11

White Wedding Corporation will pay a $2.65 per share dividend one year from today. The company pledges to increase its dividend

by 4.75 percent per year, indefinitely. If you require a return of 11 percent on your investment, how much will you pay for the company's stock today
Business
1 answer:
bezimeni [28]2 years ago
8 0

The amount I will pay for the company's stock today is $42.40.

<h3>How much would I pay for the company's stock?</h3>

The amount I would pay for the company's stock is dependent on the value of the stock. The value of the stock can be determined using the Gordon growth model.

According to the Gordon growth model, the value of a stock is a factor of its dividend, growth rate and the rate of return.

Value of a stock = next year dividend / (rate of return - growth rate)

$2.65 / (11 - 4.75%)

$2.65 / 6.25%

$2.65 / 0.0625 = $42.40

To learn more about how to determine the value of a stock, please check: brainly.com/question/15710204

#SPJ1

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Tara is shopping at a department store in the mall. before checking out she wants to make sure she brought enough money to pay f
finlep [7]
If Tara bought, sweater $ 52, T-shirt $19, Shoes $68, Jeans $72, Necklace $21, the total would be;
52+19+68+72+21 = 230
But a tax rate of 7% was included, 
Thus, 230 × 0.07 = 16.1
Therefore, the total amount is 230+16.1 = 246.1
Hence, the Estimate amount of money that Tara expects to pay is $250
3 0
3 years ago
Marketing Docs prepares marketing plans for growing businesses. For 2017, budgeted revenues are $1,500,000 based on 500 marketin
pishuonlain [190]

Answer:

Option (a) is correct.

Explanation:

Contribution margin per marketing plan = Sales - Variable cost

                                                                   =  $3,000 - $2,000

                                                                   = $1,000

A.

(1) Break-even\ in\ rooms=\frac{Fixed\ cost}{contribution\ margin\ per\ marketing\ plan}

Break-even\ in\ rooms=\frac{400,000}{1,000}

Break even in marketing plan = 400

(2) Break-even in dollars:

= Break-even in marketing plan × Average rate per plan

= 400 × 3,000

= 1,200,000

(3) Margin of safety = Actual sales - Break-even sales in dollars

                                = 1,500,000 - 1,200,000

                                = 300,000

Margin\ of\ safety\ ratio=\frac{Margin\ of\ safety}{Actual\ sales}

Margin\ of\ safety\ ratio=\frac{300,000}{1,500,000}

                                             = 20%

B.

(1) Contribution margin per marketing plan = Sales - Variable cost

                                                                   =  $4,000 - $2,000

                                                                   = $2,000

Break-even\ in\ rooms=\frac{Fixed\ cost}{contribution\ margin\ per\ marketing\ plan}

Break-even\ in\ rooms=\frac{400,000}{2,000}

Break even in marketing plan = 200

(2) Break-even in dollars:

= Break-even in marketing plan × Average rate per plan

= 200 × 4,000

= 800,000

(3) Margin of safety = Actual sales - Break-even sales in dollars

                                = 1,500,000 - 800,000

                                = 700,000

Margin\ of\ safety\ ratio=\frac{Margin\ of\ safety}{Actual\ sales}

Margin\ of\ safety\ ratio=\frac{700,000}{1,500,000}

                                             = 47%

Therefore, option (a) would achieve the margin of safety ratio more than 45%.

7 0
3 years ago
Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisio
abruzzese [7]

Answer:

Please check the info below

Explanation:

1. For Osaka

Margin =  Net Operating Income / Sales *100

= $ 792000 / $9900000 *100

= 8.00%

Turnover = Sales / Average Operating Assets * 100

= $ 9900000 / $ 2475000 * 100

= 4.00%

ROI =  Margin * Turnover

= 8% *4 %

= 32.00%

Hence the correct answer is 32.00%

For Yokohama :

Margin =  Net Operating Income / Sales *100

= $ 2900000 / $ 29000000*100

= 10.00%

Turnover = Sales / Average Operating Assets * 100

= $ 29000000 / $ 14500000* 100

= 2.00%

ROI =  Margin * Turnover

= 10% *2 %

= 20.00%

Hence the correct answer is 20.00%

2. The correct answer is  

Osaka = $ 371,250

Yokohama = $ 435,000

3. The correct answer is No

This is because since Osaka has a higher ROI, Yokohama’s greater amount of residual income is not an indication that it is better managed

4 0
3 years ago
The deadweight loss associated with output less than the competitive level can be determined by A. subtracting the consumer surp
SSSSS [86.1K]

Answer:

C. subtracting the competitive level producer surplus from the producer surplus associated with less output

Explanation:

A deadweight loss refers to a cost to society created as a result of market inefficiency. Market inefficiency occurs when supply and demand are out of equilibrium. It is also known as excess burden.

Deadweight loss is also created due to taxes as they prevent people from purchasing things that they would otherwise as the final price of the product increases.

The deadweight loss associated with output less than the competitive level can be determined by subtracting the competitive level producer surplus from the producer surplus associated with less output

7 0
2 years ago
Economic Order Quantity computes:
Mamont248 [21]

Answer:

D: Optimum Order size​

Explanation:

Economic Order Quantity (EOQ) is a formula applied in logistic and supply chain management to calculate a business's ideal order size. As the name suggests, the order EOQ provides an order quantity that makes economic sense.

Economies of scale suggest that a bigger order size is better because the business will save transport costs. However, ordering in large quantities increases the cost of holding stock. The economic order quantity strikes a balance between these two important factors.

7 0
3 years ago
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