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Brut [27]
3 years ago
10

Antiques ‘r' us is a mature manufacturing firm. the company just paid a dividend of $12.30, but management expects to reduce the

payout by 5 percent per year, indefinitely. if you require a return of 9 percent on this stock, what will you pay for a share today? (do not round intermediate calculations and round your answer to 2 decimal places,
e.g., 32.16.) current share price
Business
1 answer:
marishachu [46]3 years ago
5 0

The constant growth model can be used here even if the dividends are decreasing by a persistent percentage, just make sure to distinguish the negative development. So, the computation for the price of the stock today will be:

P= dividend (1 +reduce payout) / (Return–reduce payout)

P= $12.30(1 – 0.05) / [(0.09 – (–0.05)]

P= $11.69 / 0.14

P = $83.46 is the price you will pay for a share today.

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Klio2033 [76]

Answer:

A) The use of both techniques ( i.e. questionnaire and Interview )

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Explanation:

A) The best approach in resolving this problem is the application of both questionnaires and interviews, this is because the questions  will be covered in both the questionnaire and interview therefore a more detailed/accurate answer can be gotten by combining both processes

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6 0
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How does the government work with the soe's
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Answer:

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3 years ago
The following items are found in the financial statements.
Oksana_A [137]

Answer:

(a) Discount on bonds payable  ⇒ SHOULD BE REPORTED IN THE BALANCE SHEET UNDER LIABILITIES

(b) Interest expense (credit balance)  ⇒ WHEN INTEREST EXPENSE IS INCLUDED IN THE INCOME STATEMENT IT HAS A DEBIT BALANCE, WHEN IT HAS A CREDIT BALANCE IT MEANS IT IS A LIABILITY AND MUST BE REPORTED IN THE BALANCE SHEET

(c) Unamortized bond issue costs  ⇒ SHOULD BE REPORTED IN THE BALANCE SHEET, IT IS A CONTRA LIABILITY ACCOUNT

(d) Gain on repurchase of debt  ⇒ SHOULD BE REPORTED IN THE INCOME STATEMENT AS PART OF OTHER GAINS AND LOSSES

(e) Mortgage payable (payable in equal amounts over next 3 years)  ⇒ SHOULD BE REPORTED IN THE BALANCE SHEET UNDER LIABILITIES (UNDER CURRENT AND LONG TERM LIABILITIES)

(f) Debenture bonds payable (maturing in 5 years) ⇒ SHOULD BE REPORTED IN THE BALANCE SHEET UNDER LONG TERM LIABILITIES

(g) Notes payable (due in 4 years)  ⇒ SHOULD BE REPORTED IN THE BALANCE SHEET UNDER LONG TERM LIABILITIES

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5 0
3 years ago
Consider these transactions: (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
defon

Answer and Explanation:

No.    Account titles and explanation              Debit             Credit

(a) Cash                                                           $2,304  

       Service Charge Expense($2,400 * 4%)     $96  

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(b) Cash                                                           $57,024  

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       Accounts Receivable                                                  $59,400

4 0
3 years ago
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The resource based model.

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4 0
3 years ago
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