There are 45 potential workers in this economy. How many people are unemployed?

Vinca Inc. has paid a dividend of $1.2 a share last year. Yesterday, the firm announced that the dividend will increase by 10 pe

shtirl [24]

Answer:

option (d) $18.24

Explanation:

Data provided in the question:

Dividend paid last year = $1.2

Dividend growth rate for 3 years, g = 10%

After 3 years Dividend growth rate, g' = 4%

Required return, r = 12%

Now,

Present vale factor, PVF = $\frac{1}{(1+i)^n)}$

Year Dividend PVF @12% Dividend × PVF

1 1.2(1+.10)= 1.32 0.89286 1.1786

2 1.32(1+.10)= 1.452 0.79719 1.1575

3 1.452(1+.10)= 1.5972 0.71178 1.1369

3(Terminal value) 20.7636 0.71178 14.7791

=====================================================

Current share price ∑(Dividend × PVF ) ≈ $18.24

Note:

Terminal value at year 3 = $\frac{D3(1+g')}{(r-g')}$

= $\frac{\$1.5972(1+0.04)}{(0.12-0.04)}$

= $20.7636

Hence,

The correct answer is option (d) $18.24

5 0

3 years ago

Last year Oliver Inc had a total assets turnover of 1.60 and an equity multiplier of 1.85. Its sales were $200,000 and its net i

schepotkina [342]

Answer:

7.4%

Explanation:

As we know that

ROE = Profit margin × Total asset turnover × Equity multiplier

where,

Profit margin = (Net income ÷ Sales) × 100

= ($10,000 ÷ $200,000) × 100

= 5%

So, the ROE would be

= 5% × 1.60 × 1.85

= 14.8%

Now if the net income is increased by $5,000

So, the updated profit margin would be

= (Net income ÷ Sales) × 100

= ($15,000 ÷ $200,000) × 100

= 7.5%

And updated ROE would be

= 7.5% × 1.60 × 1.85

= 22.2%

So, the change in ROE would be

= 22.2% - 14.8%

= 7.4%

4 0

4 years ago

The _____, or potential exposures, possible in a medium is arrived at by multiplying the medium's total audience size by the num

ycow [4]

Answer:

a) gross impressions

Explanation:

First of all, impressions are the times an individual member of an audience is exposed to a certain advertisement.

Gross impressions refer to the total amount of times a group of individuals (or households) that are exposed to a certain advertisement during a given media schedule or program.

A single individual might be exposed several times to the same advertisement, therefore the number of gross impressions may exceed the total audience of the media.

Gross rating points measure the audience of a media while gross impressions measure the number of times the audience is exposed to a certain advertisement.

3 0

3 years ago

With the help of a diagram explain types of price elasticity of supply

SIZIF [17.4K]

Answer:

...

Explanation:

...

8 0

4 years ago

from 1960 to 1970, the consumer price index (CPI) increased from 29.6 to 38.8 if a dozen tangerines cost 0.31 in 1960 and the pr

Finger [1]

Answer: $0.41

Explanation:

A consumer price index measures the average price changes of goods that are bought by people in an economy. It shows the level of inflation in an economy.

To calculate the cost of a dozen tangerines in 1970we have to know the percentage increase in price index from 1960 to 1970 and this will be:

= [(38.8 – 29.6) / 29.6] × 100%

= (9.2 / 29.6) × 100%

= 31.08%

Let's represent the price of a dozen tangerines in 1970 by X and solve. This will be:

31.08 = (X - 0.31) × 100 / 0.31

Cross multiply

(31.08 × 0.31) = 100X - 31

9.6348 = 100X - 31

100X = 9.6348 + 31

100X = 40.6348

X = 40.6348 / 100

X = 0.46348

X = 0.41

Therefore, the cost of a dozen tangerines in 1970 is $0.41

6 0

3 years ago