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sasho [114]
3 years ago
12

Summit Systems has an equity cost of capital of 11.5%, will pay a dividend of $1.50 in one year, and its dividends had been expe

cted to grow by 7.0% per year. You read in the paper that Summit Systems has revised its growth prospects and now expects its dividends to grow at a r of 4.0% per year forever.
a. What is the drop in value of a share of Summit Systems stock based on this information?
b. If you tried to sell your Summit Systems stock after reading this news, what price would you be likely to get?
Business
1 answer:
Anni [7]3 years ago
5 0

Answer:

Explanation:

Ok

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kolezko [41]
Okay answer choices please haha
4 0
3 years ago
Each of the items below must be considered in preparing a statement of cash flows for Baskerville Co. for the year ended Decembe
Vladimir79 [104]

Answer:

a. Issued bonds for $200,000 cash ⇒<u> Cash inflow from Financing Activities. </u>

Financing activities refer to those that bring in capital to the company. This capital comes in the form of equity and long term liabilities like bonds. Money coming in from bonds will therefore be an inflow here.

b. Purchased equipment for $150,000 cash. ⇒ <u>Cash Outflow from Investing Activities </u>

Investing activities have to do with the fixed assets of the company as well as investments into the securities of other companies. Money is leaving the company to purchase the fixed asset here -equipment - so this is an outflow.

c.Sold land costing $20,000 for $20,000 cash. ⇒  <u>Cash inflow from Investing Activities.</u>

As already stated, Investing activities relate to fixed assets. Selling a fixed asset such as land will therefore bring in cash from investing activities.

d. Declared and paid a $50,000 cash dividend⇒ <u>Cash Outflow from Financing activities</u>

As financing activities relate to equity, dividends will be a cash outflow from here because it is cash that is leaving the company to go to equity holders.

6 0
2 years ago
Total assets are $1,450, fixed assets are $790, long-term debt is $750, and short-term debt is $300. What is the amount of curre
Bad White [126]

Answer:

A. $660  

Explanation:

Total assets include current assets, fixed assets, and intangible assets Current assets include cash, stock, receivable account, etc. Fixed assets include plant & machinery, land, equipment, furniture & equipment, etc.

And the intangible assets are trademarks, copyrights, goodwill, and so$66 on.

The computation is shown below:

= Total assets - fixed assets

= $1,450 - $790

= $660

5 0
3 years ago
Ryan bought a stock three years ago for $6 a share. Today, June 22, the stock is selling for $72 a share. Ryan is afraid that th
dem82 [27]

Answer:

B) Ryan's stock was sold for $9 a share causing him to lose most of his profits.

Explanation:

Stop loss order means the limit the loss to the extent investor has opted. Since Ryan placed a stop loss order at $70, so, when the price of the stock starts at $9, the stock would be sold at $9 because it is the next available price to what he placed a stop loss order.

So, the Answer is Ryan stock is sold for $9 a share causing him to lose most of his profits.

6 0
2 years ago
Which federal regulatory agency would most likely bring a civil suit against a business that broke securities laws?
VARVARA [1.3K]

Which federal regulatory agency would most likely bring a civil suit against a business that broke securities laws?

answer:

THE SEC

8 0
2 years ago
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