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-BARSIC- [3]
3 years ago
15

You have just purchased a share of stock for $ 19.09. The company is expected to pay a dividend of $ 0.51 per share in exactly o

ne year. If you want to earn a 10.8 % return on your​ investment, what price do you need if you expect to sell the share immediately after it pays the​ dividend?
Business
1 answer:
frozen [14]3 years ago
8 0

Answer:

$20.64

Explanation:

Use the rate of return formula to solve for the new price;

r = ( P1 +Div1 -P0)/P0

whereby;

r = rate of return = 10.8% or 0.108 as a decimal

Div1 = Next year's dividend amount = $0.51

P1 = next year's stock price =?

P0 = Current stock price = $19.09

Next, plug in the numbers to the formula;

0.108 = (P1 + 0.51 - 19.09) / 19.09

Multiply both sides by 19.09;

2.0617 = P1 -18.58

Add 18.58 on both sides;

2.0617 + 18.58 = P1

20.64 = P1

Therefore, you need to sell the share at $20.64

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Lakeland Consulting purchased computer equipment for $10,000. Lakeland made a $2,000 down payment with the balance due within 90
natta225 [31]

Answer:

Increase in assets of $8,000 and an increase in liabilities $8,000

Explanation:

The effect of the transaction is shown below with the help of the accounting equation

Liabilities + Owner equity = Assets

$8,000       + 0                        = $8,000

($10,000 - $2,000)

Therefore from the above calculation,  we can see that there is an increase in assets also there will be an increase in liabilities but no effect on stockholder equity

3 0
3 years ago
A new highway is to be constructed.
baherus [9]

Answer:

Desing B

<u><em>Total Present worth</em></u>     $  502.485,35‬

<u><em>Annual worth:</em></u>              $    49,722.003

Option 2:

<u><em>Total Present worth</em></u>     $  666.441,33‬

<u><em>Annual worth:</em></u>              $   53,845.798

Explanation:

<h2>Desing A</h2>

$85 x 5280     =   448,800

$4 x 3 x 5280  =     63,360

$8000 x 4        = <u>    32,000  </u>

total cost:                544,160‬

Annual cost:

11,800 + 300 = 12,100

PV of the annual maintenance:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 12,100.00

time 16

rate 0.06

12100 \times \frac{1-(1+0.06)^{-16} }{0.06} = PV\\

PV $122,281.3328

<u><em>Present worth:</em></u>

total cost to construct  544,160‬ + maintenance $122,281.33 = 666.441,33

<u><em>Annual worth:</em></u>

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV 544,160

time 16

rate 0.06

544160 \div \frac{1-(1+0.06)^{-16} }{0.06} = C\\

C  $ 53,845.798

<h2>Desing B</h2>

a mile is equivalent to 5,280 foot

paviment $40 x 5,280 = $ 211,200

sood ditched 2 per foot x 5,280 foot per mile x $1.40 = $ 12,038.4

pipe culvert 2,200 x 2 = 4,400

Total value to construct: 227.638,4‬

PV of maintenance:

replacement 2,400 x 2 = 4,800 (in 8 years)

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $4,800.0000

time  8.00

rate  0.06000

\frac{4800}{(1 + 0.06)^{8} } = PV  

PV   3,011.5794

maintenance $2,900

culverts 2 x $ 230 = $ 460

ditch 1.45 x 5,280 x 2 = $ 15,312

Total yearly cost: 18.672‬

PV of this annuity over 16 years:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 18,672.00

time 16

rate 0.06

18672 \times \frac{1-(1+0.06)^{-16} }{0.06} = PV\\

PV $188,697.2765

PV of the replacement bituminous concrete

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $211,200.0000

time  16.00

rate  0.06000

\frac{211200}{(1 + 0.06)^{16} } = PV  

PV   83,138.0951

<u><em>Present worth:</em></u>

Total value to construct: $  227.638,4‬ +

yearly cost PB                 $  188,697.28 +

concrete replacement    $ 83,138.0951

culvert replacement:       $<u>   3,011.58      </u>

Total Present worth        502.485,35‬

<u><em>Annual worth:</em></u>

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

502485.35 \div \frac{1-(1+0.06)^{-16} }{0.06} = C\\

C  $ 49,722.003

<em><u /></em>

6 0
3 years ago
Pepe Pieman believes that pizza is a much more versatile meal than most people realize. As the national marketing manager for Pi
solniwko [45]

Answer: entrepreneur; self disciplined

Explanation:

1. Given Pepe's willingness to accept the risks of opening and running Pepe's Pizzazzeria, he is clearly an example of an entrepreneur.

An entrepreneur is one who goes into a business despite knowing that there'll be risk along the way and uses the resources available to achieve his aim.

2. Pepe remains confident and enthusiastic even though his colleagues have poked fun at his ideas. This shows that Pepe is self disciplined. He knows what he wants and won't let any negative comments from anyone affect him.

6 0
3 years ago
Martinez Company issued $600,000 of 10%, 20-year bonds on January 1, 2014, at 102. Interest is payable semiannually on July 1 an
Alex787 [66]

Answer:

The correct asnwer is : Journal entries

Bonds Payable 600,000

Cash: 600k6/1210%=30,000

Interest Payable 30,000

Explanation:

(a) Issuance of bonds:

Cash: 600k * 1.02 =612k

January 1st, 2014:

Cash 612,000

Premium on Bonds Payable 12,000

Bonds Payable 600,000

(b). Payment of interest and amortization:

Interest Expense: 612,0006/12.097705 = 29,897.73

Cash: 600k6/1210%  = 30,000

July 1st, 2014:

Interest Expense 29,897.73

Premium on Bonds Payable 102.27

Cash 30,000

(c). Accrual of interest and related amortization:

Interest Payable: 600k6/12.1=30,000

Interest expense: (612k-102.27)6/12.097705=29,892.73

December 31st, 2014:

Interest expense 29,892.73

Premium on Bonds Payable 107.27

Interest Payable 30,000

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3 years ago
Calculate the inventory turns when Sales is $200,000,000, Cost of sales is $160,000,000, Average inventory is $ 40,000,000 and C
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4 0
3 years ago
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