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yanalaym [24]
3 years ago
15

When different invest Assume​ Evco, Inc. has a current stock price of $ 50.00 and will pay a $ 2.00 dividend in one​ year; its e

quity cost of capital is 15 %. What price must you expect Evco stock to sell for immediately after the firm pays the dividend in one year to justify its current​ price
Business
1 answer:
Yakvenalex [24]3 years ago
5 0

Answer:

The correct answer is $55.5.

Explanation:

According to the scenario, the given data are as follows:

Stock Price = $50

Dividend  = $2

Equity cost   = 15%

So, we can calculate the Price of the stock after 1 year by using following formula:

Stock Price = ( Dividend + Stock price after 1 year) ÷ ( 1 +  Equity cost)

By putting the value we get

$50 = ($2 + Stock price after 1 year) ÷ ( 1 + 0.15 )

Stock price after 1 year = [$50 × 1.15] - $2

= $55.5

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If a firm sells on terms of 2/10, net 30 days, and its DSO is 28 days, then the fact that the 28-day DSO is less than the 30-day
mart [117]

Answer:

False

Explanation:

If a firm sells on terms of 2/10, net 30 days, and its DSO is 28 days, then the fact that the 28-day DSO is less than the 30-day credit period tell us that the credit department is functioning efficiently and there are no past due accounts. This is a false statement.

7 0
3 years ago
Jenna would like to work as a computer programmer. While in college, Jenna worked in a bookstore, where she eventually moved up
TiliK225 [7]
<span>the answer d Jenna is incorrect; working in the bookstore gave her the management experience valuable in different fields.
Even though jenna's decision is correct in quitting her job in the bookstore and start to pursue her dream, her view on her previous job is wrong.
With ther past experience, Jenna now has additional skills in leading team members which would be extremely useful for her next job.</span>
4 0
3 years ago
Read 2 more answers
Sixty years ago, your mother invested $3,800. Today, that investment is worth $430,065.11. What is the average annual rate of re
LuckyWell [14K]

Answer:

8.2%

Explanation:

As we know that:

r = (Future Value / Present Value)^(1/Time)   - 1

Here

Future Value is $430,065.11

Present Value is $3,800

Time is 60 years

By putting values, we have:

r = ($430,065.11 / $3,800)^(1/60)   - 1

r = (113.16)^(1/60)   - 1

r = 1.082 - 1 = 8.2%

3 0
3 years ago
The development of a nationwide computerized job bank listing of all job openings would be most likely to reduce: Group of answe
djyliett [7]

The development of a nationwide computerized job bank listing of all job openings would be most likely to reduce cyclical unemployment.

<h3>What is seasonal unemployment?</h3>
  • When the abilities that people in the economy have to provide and the skills that employers need from employees do not match, structural unemployment results.
<h3>What is frictional unemployment?</h3>
  • The time between quitting a job voluntarily and finding another is known as the frictional unemployment period.
<h3>What is natural unemployment?</h3>
  • The lowest rate of unemployment brought on by actual or voluntary economic forces is known as natural unemployment, or the natural rate of unemployment.
  • The number of persons experiencing natural unemployment indicates those who are jobless as a result of the structure of the labor force, such as those who have been displaced by technology or those who lack the necessary skills to find employment.
<h3>What is cyclical unemployment?</h3>
  • The portion of overall unemployment that is specifically caused by cycles of economic expansion and contraction is known as cyclical unemployment.
  • Typically, unemployment increases during economic downturns and decreases during boom times.

Therefore, the development of a nationwide computerized job bank listing of all job openings would be most likely to reduce cyclical unemployment.

Know more about unemployment here:

brainly.com/question/305041

#SPJ4

3 0
2 years ago
The budget process involves doing all of the following except a. periodically comparing actual results with the goals b. establi
Sergio [31]

Answer:

d. dismissing all managers who fail to achieve operational goals specified in the budget

Explanation:

The budget, no matter how well it's done, It's a forecast.

Price can change without the company being able to intervene, the same goes for consumer demand, foreign currency rates changes, and other variables in the budget.

Having that in mind, the accounting can measure the variance and check the efficiency and price influence in the result below expected.

Therefore, dismiss immediately after not achieving a goal is not the purpose of a budget

7 0
3 years ago
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