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drek231 [11]
2 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]2 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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The Fluffy Feather sells customized handbags. Currently, it sells 18,000 handbags annually at an average price of $89 each. It i
MAVERICK [17]

Answer: $146,000

Explanation: $146,000

Sales = (Firms estimates x low-priced line) - (Higer-Priced line x Average Price)

(7,000 × $59) + (-3,000 × $89) = $146,000

8 0
3 years ago
In the scor model, purchasing is represented by
RUDIKE [14]

A leverage by is one where there is.

8 0
2 years ago
Joey bought a dozen oranges for $3. 50 and several bananas for $0. 25 each at the grocery store. Joey spent a total of $5. 75 on
Verizon [17]

The number of bananas that Joey purchased would be represented on a number line with digits 0 to 10 by marking point 9 with a dot (circle) as shown in the image attached.

  • Let the number of bananas be B.

<u>Given the following data:</u>

  • A dozen oranges = $3. 50
  • Bananas = $0. 25
  • Total cost = $5.75

<u>Note:</u> A dozen oranges is equal to 12 oranges.

To determine the number line that best represents the number of bananas Joey purchased:

First of all, we would calculate the number of bananas that Joey purchased:

3.50 +0.25B =5.75\\\\0.25B =5.75-3.50\\\\0.25B =2.25\\\\B=\frac{2.25}{0.25}

B = 9 bananas.

<u>For the </u><u>number line</u><u>:</u>

The number of bananas that Joey purchased would be represented on a number line with digits 0 to 10 by marking point 9 with a dot (circle) as shown in the image attached.

Read more: brainly.com/question/13553589

6 0
2 years ago
Nielsen Auto Parts had beginning net fixed assets of $218,470 and ending net fixed assets of $209,411. During the year, assets w
balu736 [363]

Answer:

Capital Expenditure during the year 40,706

Explanation:

opening assets                        =                  218470

less: Depriciation for the year =                  (42822)

less: Disposal of assets           =                   (6943)

less: Closin Assets                   =                   (209411)

Balancing figure additions       =                   40706

8 0
2 years ago
In each of the following cases, determine how much GDP and each of its components is affected, if at all:
Elanso [62]

Answer:

Follows are the solution to this question:

Explanation:

In option A, Its increase in consumption and GDP is $200.

In option B, Investment decisions increase about $1800, net exports drop by $1800 and therefore GDP should remain constant.

In option C, GDP or investment wasn’t increasing only at present because estimates were produced last year.

In option D, Market growth is $470 million, options trading is rising by $30 million but GDP is growing by $500 million.

GDP is just a misleading indicator, it does not take into account recreation, environmental protection, education and health rates, non-market behaviors, changes in wealth disparity, increases of variety or rises in innovation. HDI's social progress Index could be used to highlight a need for people or their ability to assess national growth as the supreme requirement.

5 0
2 years ago
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