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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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Delta Company performed $20,000 of services on account and recorded the amount due as a typical account receivable. Over time, i
Llana [10]

Answer:

D) No impact on the accounting equation.

Explanation:

  • Nothing would happen since the amount to be received would remain the same i-e $20,000, so there is no chance for increase in liabilities. Moreover, the there is no new services so that asset should be impacted.
  • What there has been done is just classifying the payment which the Delta thought that they would receive earlier, but now it is being realized that it will take long, so just to not make any mistake or confusion for future this was done.
3 0
3 years ago
What do you mean by office personal<br>​
weqwewe [10]

Answer:

An office personal is a private office space. So having a private office you have more privacy, and this can result in higher productivity if your work requires full concentration.

5 0
3 years ago
Knowing what of the product life cycle a product is in helps marketers make intelligent and efficient marketing decisions?
givi [52]

Knowing what stage of the product life cycle a product is in helps marketers make intelligent and efficient marketing decisions.

<h3>What is the product life cycle?</h3>

The stages that a product goes through as it enters, establishes itself and leaves the market are defined by the Product Life Cycle (PLC). The product life cycle, in other words, outlines the stages that a product is likely to go through. Managers can use it to examine their products and create plans as they move through different stages.

When a product is first introduced to the market, a company frequently faces higher marketing expenses; nevertheless, as product adoption rises, more sales are realized.

When a product's adoption matures, sales stabilize and peak, however they may decline due to competition and obsolescence. When making business decisions, from pricing and advertising to expansion or cost-cutting, the idea of product life cycle might be helpful.

To learn more about the product life cycle, visit:

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4 0
2 years ago
Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 61,00
DanielleElmas [232]

Answer:

It is more convenient to produce in house.

Explanation:

Giving the following information:

Direct materials $ 4.00

Direct labor 8.00

Overhead 9.00

Total costs per unit $ 21.00

Direct materials and direct labor are 100% variable. The overhead is 80% fixed. An outside supplier has offered to supply the 61,000 units of RX5 for $19.00 per unit.

The fixed costs are unavoidable, therefore we will concentrate the analysis in the variable costs.

Make in house:

Unitary cost= 4 + 8 + (9*0.20)= $13.8

Buy= 19

Difference= 19 - 13.8= 5.2

It is more convenient to produce in house.

7 0
3 years ago
Which of the following is a potential operating instrument for the central​ bank? A. The M1 money supply B. The monetary base C.
Angelina_Jolie [31]

Answer:

The correct answer is B. The monetary base.

Explanation:

The Monetary Base is made up of all legal money in circulation (that is, bills and coins), added to the reserves of commercial banks in the central bank. In other words, it is the legal money issued by the Central Bank of a country and can be in the hands of the public, or else in the cashier of the different commercial banks that the financial sector of the country. The monetary base is monitored by the central bank and constitutes its main way to control the money supply. Also another way to define the monetary base is that they constitute the monetary liabilities of the central bank.

7 0
3 years ago
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