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
Julli [10]
2 years ago
10

Suppose Compco Systems pays no dividends but spent $ 5.18 billion on share repurchases last year. If​ Compco's equity cost of ca

pital is 11.5 %​, and if the amount spent on repurchases is expected to grow by 7.9 % per​ year, estimate​ Compco's market capitalization. If Compco has 5.8 billion shares​ outstanding, to what stock price does this​ correspond? ​Compco's market capitalization will be ​$ nothing billion. ​(Round to two decimal​ places.) ​Compco's stock price will be ​$ nothing. ​(Round to the nearest​ cent.)
Business
1 answer:
shusha [124]2 years ago
3 0

Answer:

Market capitalization - $155.26

Stock price - $26.77

Explanation:

The computation of the market capitalization is shown below:

= last year dividend × (1 + growth rate) ÷  (cost of capital - growth rate)

= $5.18 billion × ( 1 + 7.9%) ÷ (11.5% - 7.9%)

= $5.58,922 billion ÷ 3.6%

= $155.26

And, the stock price would be

= Market capitalization ÷ outstanding shares

= $155.26 ÷ 5.8 billion

= $26.77

You might be interested in
Mayfair Co. allows select customers to make purchases on credit. Its other customers can use either of two credit cards: Zisa or
alexandr402 [8]

Answer:

June 4 Sold $650 of merchandise (that had cost $400) on credit to Natara Morris.

June 4

Dr Accounts receivable 650

    Cr Sales revenue 650

June 4

Dr Cost of goods sold 400

    Cr Inventory 400

5 Sold $6,900 of merchandise (that had cost $4,200) to customers who used their Zisa cards.

June 5

Dr Accounts receivable 6,693

Dr Credit card fees 207

    Cr Sales revenue 6,900

June 5

Dr Cost of goods sold 4,200

    Cr Inventory 4,200

June 5, after Zisa transfers the money

Dr Cash 6,693

    Cr Accounts receivable 6,693

6 Sold $5,850 of merchandise (that had cost $3,800) to customers who used their Access cards.

June 6

Dr Unbilled revenue 5,733

Dr Credit card fees 117

    Cr Sales revenue 5,850

June 6

Dr Cost of goods sold 3,800

    Cr Inventory 3,800

8 Sold $4,350 of merchandise (that had cost $2,900) to customers who used their Access cards.

June 8

Dr Unbilled revenue 4,263

Dr Credit card fees 187

    Cr Sales revenue 4,350

June 8

Dr Cost of goods sold 2,900

    Cr Inventory 2,900

10 Submitted Access card receipts accumulated since June 6 to the credit card company for payment.

June 10

Dr Accounts receivable 9,996

    Cr Unbilled revenue 9,996

13 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $429 balance in McKee’s account stemmed from a credit sale in October of last year.

June 13

Dr Bad debt expense 429

    Cr Allowance for doubtful accounts 429

17 Received the amount due from Access.

June 17

Dr Cash 9,996

    Cr Accounts receivable 9,996

18 Received Morris’s check in full payment for the purchase of June 4.

June 18

Dr Cash 650

    Cr Accounts payable 650

3 0
3 years ago
To determine the effective gross income on a property, the sales associate should:________
artcher [175]

Answer:

Subtract vacancy and credit costs from potential gross income

Explanation:

Effective gross income (EGI) is actually the ratio or relationship that exists between the sale price of a property and effective gross income of that same property.

It is the potential gross income added to other income when vacancy and credit costs are subtracted from it.

EGI is used to determine the value of a rental property and the cash that the property generates.

4 0
3 years ago
All of the following actions lead to the payment of a credit card fee EXCEPT...
alexandr402 [8]

I need the picture so I can see it

7 0
2 years ago
Read 2 more answers
Statutes that require proof of character and skill and impose penalties for violation are considered to be revenue-raising in na
denis23 [38]
I think its true. I don't think its false so true

4 0
3 years ago
With 34,000 restaurants worldwide and a daily customer count of 69 million people, mcdonald's manages its product mix to generat
lidiya [134]
Oml so much to read ...
4 0
3 years ago
Other questions:
  • The Masterson family is setting up a vacation fund, and they plan on depositing $1,000 per quarter in an investment that will pa
    8·1 answer
  • Which of these is an essential characteristic of a command economy
    5·1 answer
  • Kangaroo Autos is offering free credit on a new $10,000 car: You pay $1,000 down and then $300 a month for the next 30 months. T
    10·1 answer
  • O’Hara Associates sells golf clubs, and with each sale of a full set of clubs provides complementary club-fitting services. A fu
    11·1 answer
  • ________ is a broad comparative concept that refers to how an organization's monetary compensation incentives compare, in genera
    8·1 answer
  • What does this part of the safety manual indicate about
    5·1 answer
  • Discuss steeps involved in business planing process​
    15·1 answer
  • A town passes a zoning ordinance preserving the architectural style of an area and requiring plantings in the parking strips. Th
    5·1 answer
  • What is the difference between national and enterprise.
    12·1 answer
  • A customer has a long margin account with no sma. if the market value of the securities rises, sma will increase by:________
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!