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drek231 [11]
3 years ago
15

Michael's, Inc. just paid $2.75 to its shareholders as the annual dividend. Simultaneously, the company announced that future di

vidends will be increasing by 5.90 percent. If you require a rate of return of 10.1 percent, how much are you willing to pay today to purchase one share of Michael's stock?
Business
1 answer:
yuradex [85]3 years ago
7 0

Answer:

$69.34

Explanation:

The computation of today one share of stock is shown below:

= (Next year dividend) ÷ (Required rate of return - growth rate)

where,

Next year dividend is

= $2.75 + $2.75 × 5.90%

= $2.75 + 0.16225

= $2.91225

And, the required rate of return is 10.1%

Plus, the growth rate is 5.90%

So, the today price is

= ($2.91225) ÷ (10.1% - 5.90%)

= ($2.91225) ÷ (4.2%)

= $69.34

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Use the following data to determine the total amount of working capital.
Leokris [45]

Answer:

$353,800

Explanation:

Working Capital = Current Assets - Current Liabilities

where,

CA = $146000 +  $189000 + $155000 + $94800 = $584,800

CL = $206000 + $25000  = $231,000

therefore,

Working Capital = $584,800 - $231,000 = $353,800

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3 years ago
Which of the following best describes the journal entry to record the withdrawal of raw materials from the storeroom for use as
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D. Debit work in process debit manufacturing overhead …..
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Your firm has net income of $245 on total sales of $1,080. Costs are $610 and depreciation is $120. The tax rate is 30 percent.
RSB [31]

Answer:

the operating cash flow is $365

Explanation:

the computation of the operating cash flow is shown below:

operating cash flow is

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=  $245 + $120

= $365

hence, the operating cash flow is $365

We simply added the net income and the depreciation expense to determine the operating cash flow  

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3 years ago
The _____ is a more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possesses a
Rus_ich [418]

Answer:

The correct answer is strategic objective.

Explanation:

The strategic objectives are the goals that a company proposes in a term greater than one year to achieve a certain objective according to its business vision. It also includes strategies to reach that goal. Here are some examples of strategic objectives.

The strategic objectives will be based on the vision or idea that is born with the company, determining its mission and values, in addition to conditioning the actions that will be carried out in order to achieve them.

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