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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

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Makers Corp. had additions to retained earnings for the year just ended of $261,000. The firm paid out $194,000 in cash dividend
gladu [14]

Answer:

a. $3.5 per share

b. $1.49 per share

c. $38.38 per share

d. 1.93 times

Explanation:

The computation is shown below:

a. Earning per share = (Net income) ÷ (Number of shares)

where,

Net income =  Additions to retained earnings + cash dividends

                    = $261,000 + $194,000

                    =  $455,000

So, the earning per share equal to

= $455,000 ÷ 130,000 shares

= $3.5 per share

b. Dividend per share = (Total dividend) ÷ (number of shares)

= ($194,000) ÷ (130,000 shares)

= $1.49 per share

c. Book value per share = (Total equity) ÷ (number of shares)

= ($4,990,000) ÷ (130,000 shares)

= $38.38 per share

d. Market to book ratio = (Market price per share) ÷ (book value per share)

= $74 ÷ $38.38

= 1.93 times

7 0
3 years ago
Bonds that have interest coupons attached to their certificates, which the bondholders present to a bank or broker for collectio
kiruha [24]
<span>The bond is a written promise to pay the bond's par value and interest at a stated contract rate. </span><span>Bonds that have interest coupons attached to their certificates, which the bondholders present to a bank or broker for collection, are called coupon bonds. 
</span><span>Bondholders detach coupons when they mature and present them to a bank or broker for collection.
</span>
3 0
2 years ago
Groundswell Industries, a U.S.-based large conglomerate, competes in the hospitality, education, telecommunications, entertainme
OLga [1]

Answer:C. Product-market diversification strategy

Explanation: Product-market diversification strategy is a business strategy where a company invests in different product lines like FOOD,MEDICALS, ENGINEERING,CEMENT etc and in different markets. This will make the Business organisation to be very versatile and able to over come certain harsh economic conditions. Many international and multinational companies have pursued this strategy to enhance their overall business growth and development.

3 0
3 years ago
Write an essay about the effects of poverty
pishuonlain [190]
Cold heartedness and inner generosity
3 0
2 years ago
Walker Company prepares monthly budgets. The current budget plans for a September ending inventory of 30,000 units. Company poli
densk [106]

Answer:

Merchandise purchases budget explanations only.

Explanation:

Hi, your question has missing information, however i have supplied explanations below.

A purchases budget is required to determine the quantities of purchases required for :

  1. Resale - For Merchandisers
  2. Use in Production in case of Manufacturer

Here is the structure of the merchandise purchases budget for Walker Company (Merchandiser).

<u>Merchandise purchases budget </u>

                                                                       Month

Budgeted Sales                                                  x

Add Budgeted Inventory                                   x

Total Purchases needed                                    x

Less Budgeted Opening Inventory                  (x)

Budgeted Purchases                                          x

As stated by the question : <em>Company policy is to end each month with merchandise inventory equal to a specified percent of budgeted sales for the following month.</em>

<em>Ending Inventory = Next months` sales x required percentage</em>

Ending Inventory for one month say July becomes Opening Inventory for the following month (August) for our merchandise purchases budget.

5 0
2 years ago
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