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My name is Ann [436]
3 years ago
8

Dragon express inc. just paid a $1.57 dividend and investors expect that dividend to grow by 5% each year forever. if the requir

ed return on the stock investment is 14%, what should be the price of the stock today.
a. $11.21
b. $17.44
c. $25.37
d. $18.32
Business
1 answer:
Elena-2011 [213]3 years ago
6 0

To solve this problem, we will use a valuation method named income valuation includes discounting of the profits the stock will carry to the stockholder in the probable future, and a final value on disposal.

Solution:

1.57 (1.05) / (.14 - .05)

= 18.32. the answer is letter d.

<span> </span>

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How can choosing the right institution help you manage money effectively?
Ratling [72]

Answer:

You may get a better job, or it may make you more responsible. The money is the main thing, you will get paid better, so you wont have to worry abt money i guess.

Explanation:

3 0
3 years ago
Patty Corporation holds 75 percent of Slider Corporation's voting common stock, acquired at book value. The fair value of the no
Marina86 [1]

Answer:

1) d. $175,000

2) b. $156,250

Explanation:

1. The computation of net income for 20X9 under the treasury stock method is shown below:-

Net income for 20X9 under the treasury stock method = Janet Operating income + Slider operating income

= $100,000 + $75,000

= $175,000

2. The computation of income assigned to the controlling interest for 20X9 is shown below:-

income assigned to the controlling interest for 20X9 = Janet Operating income + (Slider operating income × Remaining percentage)

= $100,000 + ($75,000 × 75%)

= $100,000 + $56,250

= $156,250

Therefore we have applied the above formulas.

5 0
2 years ago
What is the amount of production overhead allocated to the assembling unit cost pool?
Diano4ka-milaya [45]

$800,000 × 40% = $320,000 is the amount required for the production of overhead allocated to the assembling unit cost pool.

Because the activity rates are computed by dividing the total cost for each activity by its total activity &  per unit cost is calculated by dividing the total dollars in each activity cost pool by the number of units of the activity cost drivers. the total cost of each activity pool is divided by the total number of units of the activity to determine the cost per unit.

Cost pool is a grouping of individual costs, typically by department or service center.

Cost per unit the amount of money spent by the company during a period for producing a single unit of the particular product or the services of the company.

Determine means to discover the facts about something.

To know more about the Cost Pool Here

brainly.com/question/14347180

#SPJ4

4 0
1 year ago
If there is a shortage in a rental market, what is expected? A. Rental prices to stay the same. B. Rental prices to be increasin
erastovalidia [21]

Answer:

Rental prices to be increasing until shortage is eliminated

Explanation:

If there is a shortage in the rental market, it means that quantity supply has reduced. This would lead to an excess of demand over supply which is known as a shortage. When there's a shortage, prices rise until the shortage ceases.

5 0
3 years ago
After the accountant of Stallone Retailers had prepared the financial statements for the year ended 31 December Year​ 6, the fol
n200080 [17]

The adjusted profit of Stallone Retailers for the year ended December 31, Year 6 is £115,400.

Data Analysis:

1. Motor Van £8,000 Motor running expense £8,000

Depreciation expense  £1,600 Accumulated depreciation £1,600 ( £8,000 x 20%)

2. Cost of goods sold £3,000 Inventory £3,000

3. Drawings  £4,000 Inventory  £4,000

4. Loan  £2,200 Cash  £2,200

<u>Adjustment of Profit</u>

Profit before the errors  £112,000

Adjustments:

Motor running expense   £8,000

Depreciation expense    (£1,600)

Cost of goods sold         (£3,000)

Adjusted profit            £115,400

Thus, the adjusted profit is now £115,400.

Learn more: brainly.com/question/3816206

4 0
2 years ago
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