1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ohaa [14]
3 years ago
13

Justin Cement Company has had the following pattern of earnings per share over the last five years: Year Earnings Per Share 20X1

$ 8.00 20X2 8.40 20X3 8.82 20X4 9.26 20X5 9.72 The earnings per share have grown at a constant rate (on a rounded basis) and will continue to do so in the future. Dividends represent 40 percent of earnings. a. Project earnings and dividends for the next year (20X6). (Round the growth rate to the nearest whole percent. Do not round any other intermediate calculations. Round your answers to 2 decimal places.)b. If the required rate of return (Ke) is 13 percent, what is the anticipated stock price (P0) at the beginning of 20X6? (Round the growth rate to the nearest whole percent. Do not round any other intermediate calculations. Round your answer to 2 decimal places.)
Business
1 answer:
ElenaW [278]3 years ago
8 0

Answer:

(a) $4.08

(b) $51.03

Explanation:

Constant growth rate for earnings:

= (EPS for any year ÷ EPS for the previous year) - 1

= (8.40 ÷ 8.00) - 1

= 0.05

= 5%

(a) EPS for 2016 = EPS for 2015 × (1 + 5%)

                          = 9.72 × 1.05

                          = $10.21          

Dividend for 2016 = 40% × EPS for 2016

                               = 40% × 10.206

                               = $4.08

(b) Stock Price at the beginning of 2016:

= Dividend for 2016 ÷ (Required rate of return - Constant growth rate)

= 4.0824 ÷ (0.13 - 0.05)

= $51.03

You might be interested in
Which eoc configuration aligns with the on-scene incident?.
g100num [7]

Answer: ICS or ICS-like EOC structure aligns with the on-scene incident organization. Many associations, jurisdictions, and organizations configure their EOCs simply by using the general/standard organizational structure of ICS. It is used either as or by modifying it slightly.

Explanation:

8 0
2 years ago
In the management assistance area, the Small Business Administration (SBA) provides all of the following EXCEPT: Group of answer
polet [3.4K]

Answer: Free college credit courses in management

Explanation:

The Small Business Administration (SBA) is a Federal government agency that aims to help small businesses and entrepreneurs by providing them with resources to make them grow.

They have toll-free phone numbers that entrepreneurs and small businesses can call for advice, they have trading training programs and business development offices who offer advice and counsel on business techniques and they even free publications on business topics.

They do not however offer free college credit courses in management.

4 0
3 years ago
Wild Plus, a television channel dedicated to wildlife, wanted to promote its new wildlife adventure series. The series received
MA_775_DIABLO [31]

Answer:

D. public relations

Explanation:

Public relations refers to the different approaches a company uses to disseminate information about its products and services to its customers and other stakeholders. Public relations involves crafting unique and catchy communication and using the media to and other mediums to create and sustain a strong brand image to the target audience.

An organization does not pay for public relations messages. It engages or participates in publicized events.  The media and medium attending the events pick and publish positive messages about the organization.

Public relations is all bout creating a good reputation in society. Organizations engage in charitable works or sponsors events as public relations events.

4 0
3 years ago
For each of the following​ accounts, identify whether that item is an​ asset, liability, or equity account. Account Classificati
Ulleksa [173]

Answer:

a. Bonds payable   Liability account

b. Equipment   Asset account

c. Accounts payable    Liability account

d. Salaries payable   Liability account

e. Common stock   Equity account

f. Retained earnings    Equity account

g. Cash   Asset account

h. Accounts receivable   Asset account

i. Sales revenue   Equity account

j. Inventory  Asset account

Explanation:

All the assets account is debit in nature, so the equipment, cash, account receivable and Inventory accounts are debit in nature and these are classified as asset.

All the account with credit nature is either classified as Liability or Equity accounts. Equity accounts are common stock, retained earning and sales revenue. Liabilities accounts are bond payable, account payable and salaries payable.

8 0
3 years ago
Many homes are decorated in spring colors because these colors are deemed to be uplifting; however, most department stores do no
rusak2 [61]

Answer:

The answer is: B) Time utility

Explanation:

Time utility refers to the business practice of making products or services available during the times that they are most convenient or desirable for customers.

For example, stores are decorated differently for Halloween than for Christmas, and the products they sell are also different.

8 0
3 years ago
Other questions:
  • Apple s dominance of smartphone and tablet markets has allowed the firm to lock up 60 percent of the world s supply of advanced
    10·1 answer
  • The difference between formal proposals and other formal reports lies mainly in
    5·1 answer
  • Jack receives a check from Kappa Company and indorses it "without recourse." This indorsement is:______.a. a blank indorsement.
    7·1 answer
  • When using the two-second rule, if you reach the mark before you finish counting "one thousand two", you __________ A. are not f
    5·1 answer
  • A person's low score on the _____ component of the Big Five personality model is closely associated with the fact that he or she
    8·1 answer
  • "Which of the following is NOT a symptom of potential investment scams? a.Pressures to get in early on the investment. b. A busi
    10·1 answer
  • A method of saving that allows easy access to the money at low risk in case of emergency is A. a 401(k) account. B. home equity.
    15·1 answer
  • The Roland Company needs to comply with the financial reporting standards of the Sarbanes-Oxley Act. One of the employees, Ken,
    8·1 answer
  • If sales revenue is $80 million and accounts receivable increased by $12 million, the amount of cash received from customers:
    15·1 answer
  • WHY do we pay tax and what is it use for
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!