1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Mnenie [13.5K]
3 years ago
8

App Holdings is expected to pay dividends of $1.50 every six months for the next three years. If the current price of App Holdin

gs stock is $22.60, and App Holdings' equity cost of capital is 18%, what price would you expect App Holdings' stock to sell for at the end of three years
Business
1 answer:
Y_Kistochka [10]3 years ago
8 0

Answer:

The answer is $34.36

Explanation:

FV = PV x (1 + R x ((1 + r))^T =  $22.6 x (1 + {($1.5 / $22.60) x [1 + (18% / 2)]}^6 = $34.36

You might be interested in
Ajax Company presently leases a copy machine on a monthly basis. The lease agreement requires a fixed fee each month in addition
DedPeter [7]

Answer:

Variable cost per copy =$ 0.03  

Explanation:

The high and low techniques helps to analyse a cost into its variable and fixed cost component.

The  formula is given below:\

Variable cost per copy = (cost at high act. - cost at low act)/(high act - low act)

Fixed cost = cost at high activity - (Vc/copy × high act)

VC per copy = ( 195 - 162)/(3500-2400) copies

                  =$ 0.03  per copy

Total fixed cost = 195 - (0.03× 3500)

                          = 195 - 105

                          =$90

5 0
3 years ago
The following list includes selected permanent accounts and all of the temporary accounts from the December 31, 2018, unadjusted
artcher [175]

Answer:

Explanation:

Dec 31, 2018

Dr Sales Salaries expense 1,700

Cr Sales Salaries payable 1,700

Dec 31, 2018

Dr Selling expense 3,000

Cr Prepaid selling expense 3,000

Dec 31, 2018

Dr COGS 1,300

Cr Merchandise inventory 1,300

COGS = Merchandise inventory - Year end inventory = 30,000 - 28700 = 1300

Dec 31, 2018

Dr Sales Revenue 529,000

Cr Income summary 529,000

Dec 31, 2018

Dr Income summary 444,500

Cr Sales return and allowances 17,500

Cr Sales discounts 5,000

Cr COGS 213,300

Cr Sales salaries payable  49,700

Cr Utilities expense 15,000

Cr Selling expense 39,000

Cr Administrative expenses 105,000

Dec 31, 2018

Dr Income Summary 84,500

Cr Retained earnings 84,500

Net Income = Total Sales - Total Expenses = 529,000 - 444,500 = 84,500

Dec 31, 2018

Dr Retained earnings 33,000

Cr Withdrawal 33,000

6 0
3 years ago
Read 2 more answers
Spencer Co.'s common stock is expected to have a dividend of $3 per share for each of the next 9 years, and it is estimated that
sweet-ann [11.9K]

Answer:

the maximum price the investor would be willing to pay for a share of Spencer Co. common stock today is $86.27

Explanation:

The computation of the maximum price the investor would be willing to pay for a share of Spencer Co. common stock today is shown below:

Expected dividend is

= $3 × 6.2469

= $18.7407

Now the market value is

= $135 × 0.5002

= $67.527

So, the maximum price is

= $18.7407 + $67.527

= $86.27

hence, the maximum price the investor would be willing to pay for a share of Spencer Co. common stock today is $86.27

5 0
2 years ago
Which statement best describes a pure market economy ?
grandymaker [24]

A pure market economy in a theoretical concept in that it has never really existed. In a pure market economy producers create what they want at a price consumers will pay. Consumers pay what they want. The key is no regulation.

8 0
3 years ago
Read 2 more answers
Prior to liquidating their partnership, Joyce and Xi had capital accounts of $50,000 and $105,000, respectively. Prior to liquid
Iteru [2.4K]

Answer:

Joyce cash distribution   = $262500

Explanation:

given data

Joyce capital = $50,000

Xi capital = $105,000

liabilities = $10,000

assets sold = $190,000

to find out

we consider Determine the amount received by Joyce as a final distribution from liquidation of the partnership

solution

we carrying value of non-cash asset prior to liquidation is

value of non-cash asset prior to liquidation = $50,0000 + $105,000 + $10,000

value of non-cash asset prior to liquidation =  $615000

so Profit on Liquidation  is = value of non-cash asset prior to liquidation - Sale of Asset

Profit on Liquidation  is = $615000 - $190,000

Profit on Liquidation  is = $ 425000

and here since

Joyce and Xi share income and losses equally

so Joyce share of profit will be

Joyce share of profit  = 50% × $ 425000

Joyce share of profit  = $212500

and

so Joyce cash distribution  will be

Joyce cash distribution  = Joyce share of profit + Joyce capital

Joyce cash distribution   = $212500 + $50,000

Joyce cash distribution   = $262500

4 0
3 years ago
Other questions:
  • A tire manufacturer produces 400 tires valued at $20 each. Three hundred tires are sold to a tire shop, which then sells them to
    5·1 answer
  • What makes communication dynamic?
    14·1 answer
  • Suppose the equilibrium price of a physical examination ("physical") by a doctor is $200, and the government imposes a price cei
    6·2 answers
  • When the economy grows, the market grows, most likely because
    5·2 answers
  • If there were 70000 pounds of raw materials on hand on January 1, 100000 pounds are desired for inventory at January 31, and 250
    6·1 answer
  • When a location includes both quantitative and qualitative inputs, a technique that can be used is: Group of answer choices Line
    12·1 answer
  • Some of the mangos from your neighbor's mango tree drop into your yard. You don't like mangos and the fallen mangos make it hard
    6·1 answer
  • Rogers Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on
    5·1 answer
  • What is one advantage of keeping your money in a savings account
    15·1 answer
  • On December 31, the company provides consulting services and bills its customer $3,000 for these services.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!