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Tomtit [17]
4 years ago
15

Stormy Weather has no attractive investment opportunities. Its return on equity equals the discount rate, which is 10%. Its expe

cted earnings this year are $4 per share. Find the stock price, P/E ratio, and growth rate of dividends for plowback ratios of (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Enter the growth rate as a whole percent.):
Business
1 answer:
Temka [501]4 years ago
7 0

Answer:

Assume that the Plow back Ratio is 50

Now,

To Compute the growth rate;

Growth rate = Return on equity × Plow back ratio

Growth rate = 10% × 0.50

Growth rate = 5.0%

Computation of the stock price.

Stock price = Dividend pa share / (Required rate - Growth rate)

Stock price = Earnings pa share × (1 - Plow back ratio) / (Required rate -Growth rate)

Stock price = $4 × (1 - 0.50) / (10% - 5.00%)

Stock price = $2.00 / 5.00%

Stock price = $40

Computation of the P/E ratio.

PIE ratio = Stock price / Earnings pa share

PIE ratio = $40 / $4

PIE ratio = $10

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Which of the following statements about the insurance verification process is a FALSE statement? A) Directly affects payment del
Lorico [155]

Answer:

B

Explanation:

Insurance verification cannot be performed until the patient arrives for services

3 0
4 years ago
Kelley Company and Mason Company each have sales of $200,000 and costs of $140,000. Kelley Company's costs consist of $40,000 fi
nikklg [1K]

The firm that would suffer the greatest decline in profits if sales volume declines by 15% is Mason Company.

The cost of a company is made up of fixed cost and variable cost. Fixed cost is the cost that does not vary with output of the company. It remains fixed no matter the level of output. An example of fixed cost is rent. Variable cost is the cost that varies with output. If output increases, variable cost increases and if output falls, output decreases.

If sales volume decreases, the output of Mason Company would decline more compared with the output of Kelley company because it has a higher fixed cost. So, we when sales reduces, its cost would would not reduce as many as the cost of Kelley company.

To learn more, please check: brainly.com/question/13059508

7 0
2 years ago
When a seller gives permission to a broker to submit the property to the MLS, the seller is authorizing the broker to make a bla
Rudiy27

Explanation:

MLS stands for Multiple Listing or Multiple Listing System. MLS is such a service that is built to assist various brokers in reviewing the lists of various properties in different areas. This list help others purchase their own property to their taste as well as sell their properties.

Under new regulations, when a seller permits a broker to send property to MLS, the broker can make a unilateral blanket bid to agree to accept or refuse all members of that MLS sub-agency.

4 0
3 years ago
Explain migration of population in economics.<br> pls its urgent
daser333 [38]

Answer:

Migration refers to the movement of a group of people from one geographical region (location) to another geographical destination in search of better living conditions, work or social amenities.

Explanation:

Migration refers to the movement of a group of people from one geographical region (location) to another geographical destination in search of better living conditions, work or social amenities.

Migration selectivity can be defined as the likelihood or tendency that a subset (part) of a group of people are going to move (migrate) out of a particular geographical location or area.

Some of the factors that influence migration selectivity are income level, age, education, gender etc.

One way migration affects various locations across the world such as Texas, Brazil, Paris, Rome, Stuttgart, Kyiv, etc., includes the establishment of different restaurants. For example, the establishment of KFC, McDonalds, Mr Biggs were influenced by the migration of people across European cities and as such served as tourist attraction centers, thus, positively affecting the character of these places.

6 0
3 years ago
Suppose that you run a house-painting company and currently have 2 workers painting a total of 4 houses per month. If you hire a
andrew11 [14]

Answer:

b. set in when the fifth worker is hired

After this point additional worker return will be lower.

Explanation:

Trhe diminishing return are the moment at which the marginal increase in production decrease.

In other words, adding a new resource provide less return than his predecessor.

Marginal

2 do 4 hours

3 do 6 houses (marginal 6 - 4 =    2)

4 do 9 houses (marginal 9 - 6 =    3)

5 do 13 houses (marginal 13 - 9 = 4)

6 do 15 houses (marginal 15 - 13 = 2)

the marginal output decrease from 4 to 2 the returns decreased.

5 0
3 years ago
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