PLEASE HELP RECORD THIS ENTRIES IN THEIR RESPECTIVE JOURNALS

The Three Amigos Restaurant just paid an annual dividend of $4.20 per share and is expected to pay annual dividends of $4.40 and

shusha [124]

Answer:

$33.93

Explanation:

First, find the present value of each year's dividend at 15% required rate of return;

(PV of D1 ) = 4.40 / (1.15) = 3.8261

(PV of D2 ) = 4.50 / (1.15²) = 3.4026

Next, find terminal Cashflow;

D3 = D2 (1+g)

D3 = 4.50 (1.02) = 4.59

(PV of D4 onwards ) = $\frac{\frac{4.59}{0.15-0.02} }{(1.15)^{2} } \\ \\ = \frac{35.3077}{1.3225} \\ \\ = 26.6977$

Next sum up the PVs to find price;

=3.8261 + 3.4026 + 26.6977

= 33.926

Therefore, this stock is worth $33.93 today

7 0

3 years ago

Federal inspectors find that several shipments of hamburger supplied to grocery chains is contaminated with potentially harmful

brilliants [131]

Answer:

The Food and Drug Administration issues a recall for the meat, and the seller notifies its customers.

Explanation:

When there is a serious or potentially serious risk to consumers, the FDA works with sellers and distributors to recall products (remove them from store shelves) and notify customers through press releases and other communications.

7 0

3 years ago

The risk-free rate is 2.3 percent and the market expected return is 12 percent. What is the expected return of a stock that has

andrew-mc [135]

Answer:

The expected return = 10.739.

Explanation:

Given risk-free rate of return = 2.3 per cent

Market expected return = 12 percent

The value of beta = 0.87

Use the below formula to find the expected return.

The expected return = Risk free rate of return + Beta × (Market expected return - risk free rate of return)

The expected return = 2.3 + 0.87 (12 – 2.3)

The expected return = 10.739

7 0

3 years ago

Suppose that JVC is trying to decide how to price a new stereo system composed of a receiver, CD player, and speakers. The compa

Kisachek [45]

Answer:

The answer is "Receivers= 200, CD player= 75, Speaker= 250 , and Combined ( bundling )= 500".

Explanation:

As a Receiver

If the value of P = 250, purchase only by students then,

TR = 250 × 10,000 = 2,500,000

If the value of P = 200, buy by both forms

TR = 200×(60,000) = 12,000,000

And higher TR,

P = 200,

For the receivers fee of P = 200

Player CD

Where the value of P = 150

TR = 150 × 10,000 = 1,500,000

If P = 75,

TR = 75×(60,000)

Superior TR with P = 75,

Rapporteurs,

If P = 100, buy both

TR = 6,000,000

TR= 100 × (60,000)

If P = 250, then buy only the club owner

TR = 250 × 50,000

TR= 12,500,000

So taller TR with P = 250

Then the will to pay combined

250 + 150 + 100 = 500 For students

For club members, 200 + 75 + 250 = 525

So if P = 500, you buy both forms

TR = 500 × 60,000 people

= 30,000,000

If only club owners buy P = 525, then

TR = 525 ×50,000

TR= 2,650,000

The higher TR for P is 500.

5 0

3 years ago

The argument that the national debt imposes a burden on future generations becomes more compelling as

svetoff [14.1K]

It becomes more compelling as it increases over time. Basically, when you owe money and die, your children have to pay it back. Then they accumulate their own debt so their children have to pay it then. This goes on for years and years and you end up with a huge national debt that the generations can't pay back and everyone keeps working for money that they don't have.

5 0

3 years ago