Stein Co. issued 17-year bonds two years ago at a coupon rate of 9.1 percent. The bonds make semiannual payments. If these bonds
1 answer:
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Answer:
Dividend yield for W = 5%
Dividend yield for X = 15%
Dividend yield for Y = 20%
Dividend yield for Z = 4.6%
Explanation:
For a constant growth stock
If r is made subject of formula; r= = div yield + growth rate
For Stock W, given r = 15% and g= 10%; dividend yield = 15%-10%=5%
For Stock X, given r = 15% and g= 0%; dividend yield = 15%-0%=15%
For Stock Y, given r = 15% and g= -5%; dividend yield = 15%-(-5)%=20%
For Stock Z, the price of the stock today is calculated as follows:
Price of the stock today = .
where P2=
Price of the stock today = =109.57
Therefore dividend yield = =
4.6%
Answer:
"$1,673,750" is the appropriate answer.
Explanation:
The given values in the question are:
Applied overhead,
= $666,250
Actual overhead,
= $650,000
Unadjusted cost,
= $1,690,000
Now,
The overapplied overhead will be:
=
=
= ($)
hence,
The goods sold's adjusted cost will be:
=
=
= ($)