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Lilit [14]
1 year ago
5

hudson corporation will pay a dividend of $2.80 per share next year. the company pledges to increase its dividend by 7.40 percen

t per year indefinitely. if you require a return of 15.40 percent on your investment, how much will you pay for the company's stock today? multiple choice $32.59 $33.60 $11.43 $35.00 $36.40
Business
1 answer:
trapecia [35]1 year ago
3 0

Option d. $35.00 is the share price that one should pay for the stock today to get the required return

The share price, or the price you will pay for the company's stock right now, can be calculated using the necessary rate of return calculation, the formula is as follows:

RRR=(EDP/SP)+DGW

where;

RRR=required rate of return

EDP=expected dividend payment from share

SP=share price

DGW=dividend growth rate

In our case:

RRR=15.40%=15.4/100=0.154

EDP=$2.80

SP=unknown

DGW=7.40%=7.40/100=0.074

Substituting the values in the formula we get the following:

0.154=(2.80/SP)+0.074

(0.154-0.074)=(2.80/SP)

0.08=2.80/SP

SP=2.80/0.08

So, the share price of the stock=$35

Learn more about dividends:

brainly.com/question/28044310

#SPJ4

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Murrr4er [49]

Answer:

Theodore Levitt

Explanation:

Theodore Levitt was an American economist and professor at the prestigious Harvard Business School (Cambridge, Massachusetts). Also editor of the economic magazine Harvard Business Review (HBR) where they published their articles. It marked a milestone in creating the concept of "globalization" focused on an economic point of view, specifically in its article "Globalization of Markets" was where he referred to it for the first time, thanks to what became very popular and joined the currents of economist thinking.

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2 years ago
Whom do price supports benefit and whom do<br> they hurt?
Flura [38]
They benefit producers and hurt consumers
7 0
3 years ago
sarah reports to work and clocks in at 8:00 a.m. each morning and leaves at approximately 4:30 p.m. all of her tools and supplie
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As Sarah reports to work and clocks in at 8:00 a.m. each morning and leaves at approximately 4:30 p.m she is most likely considered as an employee of the company.

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The supplies that are used for work are given by the company which is also the case for Sarah.

Each employee in an organization works under a supervisor who is answerable to the CEO. Sarah also has a supervisor who directs ad assigns her tasks.

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4 0
10 months ago
Selected comparative financial statements of Korbin Company follow:
Oksanka [162]

Answer:

Korbin Company

Selected Comparative Financial Statements:

1. KORBIN COMPANY  Comparative Income Statements

For Years Ended December 31, 2017, 2016, and 2015

                                      2017         %           2016        %            2015        %

Sales                         $515,770    100%   $395,122  100%   $274,200   100%

Cost of goods sold    310,494      60%    250,507    63%      175,488     64%

Gross profit               205,276      40%      144,615    37%        98,712     36%

Selling expenses        73,239       14%       54,527    14%         36,194     13%

Admin.  expenses       46,419        9%        34,771      9%        22,759      8%

Total expenses         119,658       23%      89,298     23%       58,953     21%

Income before taxes  85,618       17%        55,317      14%       39,759     15%

Income taxes             15,925         3%        11,340        3%          8,071       3%

Net income             $69,693        14%   $43,977        11%      $31,688     12%

2. KORBIN COMPANY

Balance Sheet Data in Trend Percents

for December 31, 2017, 2016, and 2015

                                                  2017            2016             2015

Assets

Current assets                        100.00 %          78%             105%  

Long-term investments          100.00            500%          3,690%

Plant assets, net                     100.00             107%             64%

Total assets                            _124__%       _121_ %       100.00 %

Liabilities and Equity

Current liabilities                    _104_ %       _103__ %     100.00 %

Common Stock                       100.00           100%             75%

Other paid-in capital               100.00           100%            66%

Retained earnings                  100.00             92%            84%

Total liabilities and equity      _124_ %         _121_ %      100.00

Explanation:

a. Data:

KORBIN COMPANY

Comparative Balance Sheets

December 31, 2017, 2016, and 2015

                                                 2017             2016             2015

Assets

Current assets                    $53,867       $42,145        $56,338

Long-term investments            0                   500            3,690

Plant assets, net                 100,040       106,805           63,791

Total assets                      $153,907     $149,450        $123,819

Liabilities and Equity

Current liabilities               $22,470     $22,268         $21,668

Common stock                     71,000        71,000           53,000

Other paid-in capital              8,875          8,875             5,889

Retained earnings               51,562        47,307           43,262

Total liabilities & equity  $153,907    $149,450         $123,819

b) In an income statement vertical analysis, each line item is calculated as a percentage of the sales, which is itself 100%.  This enables the proportional analysis of all the items to be computed about their financial performance in relation to the sales for the period.  It can help management to dictate unusual items, errors, and other outliers.

c) The balance sheet trend analysis shows whether the entity's financial position is improving or not in relation to the base period.  Each item is compared horizontally across periods.  The calculation of trend uses the amount in the non-base year and divides it by the amount of the base year x 100.

4 0
3 years ago
The government uses taxes and subsidies to guide consumption and production decisions.
aleksandrvk [35]

Answer: True

Explanation:

Tax is the amount of money that's paid by an individual or firm to the government. Subsidies are the funds or other forms of assistance that's given by the government to firms in order to help them increase their production and lower the prices of goods.

Fir example, if the government wants to decrease consumption in the economy, the government can increase tax. On the other hand, the government can increase consumption by reducing tax as people will have money to spend and also more money for production purpose.

4 0
2 years ago
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