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dimaraw [331]
9 months ago
12

eastern hotel corp. pays a constant $7.80 dividend on its stock. the company will maintain this dividend for the next 13 years a

nd will then cease paying dividends forever. if the required return on this stock is 11.2%, what is the current share price?
Business
1 answer:
Lesechka [4]9 months ago
6 0

The stock is now trading at $52.16 per share.

The current value of an annuity of n regular payments of P at r% with yearly payments is provided by:

PV = P × (1 -((1 + r) ^{-n}÷r))

Estes Park Corp. distributes a fixed rate of a dividend of P = $7.80 per share on its shares. The corporation will retain this dividend for the following n = 13 years before ceasing dividend payments permanently. If the necessary returns on this stock are not metis r = 11.2% = 0.112.

The actual share price is calculated as follows:

Current share price = $7.80 × (1 -((1 + 0.112) ^{-13}÷0.112))

$7.80 × ((1 - 0.251) ÷ 0.112)

$52.16

Therefore, the current share price is $52.16

Read more about the stock price at

brainly.com/question/15327515?referrer=searchResults

#SPJ4

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On October 31, 2021, Damon Company’s general ledger shows a checking account balance of $8,415. The company’s cash receipts for
Slav-nsk [51]

Answer:$14,425

Explanation:

Adjusted cash balance:

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Add note receivable: $5,600

Add interest earned: $620

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Adjusted cash balance: $14,425

Bank Reconciliation statement:

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Add outstanding checks($72,485-$71,090): $1,395

Less uncredited checks($74,440-$71,325): ($3,115)

Less Bank Error: ($540)

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3 years ago
Asales software company decides to find out how their products are being used and sold. They approach five different sales execu
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Answer:

a. interviews were expensive to conduct

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The rationale behind this conclusion is as presented in the scenario that ''In order for executives to agree to the interviews the company provides a large cash incentive.''

The fact that in-depth interview could be paid for, in order to guarantee its occurrence; is a practical display of the fact that in-depth interview or Face-to-Face method, is very expensive.

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Professor jennings claims that only 35% of the students at flora college work while attending school. dean renata thinks that th
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Manson Industries incurs unit costs of $7 ($5 variable and $2 fixed) in making an assembly part for its finished product. A supp
sergiy2304 [10]

Answer:

Manson Industries

The total cost savings that Manson will realize by buying the assembly part instead of making it is:

($14,700), showing that more costs will be incurred.

Explanation:

a) Data and Calculations:

                                   Make       Buy

Variable cost per unit   $5            $6

Fixed cost per unit          2              2

Total cost per unit        $7            $8

Total units required 14,700       14,700

Total costs           $102,900   $117,600

Cost saving = ($14,700)

b) Based on the above calculations, it benefits Manson more to produce the part internally than to buy from an outside supplier.  There is a cost difference of $1 because the fixed costs will still be incurred whatever decision is taken.

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