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aksik [14]
3 years ago
12

Zoom Enterprises expects that one year from now it will pay a total dividend of $ 5.0 million and repurchase $ 5.0 million worth

of shares. It plans to spend $ 10.0 million on dividends and repurchases every year after that​ forever, although it may not always be an even split between dividends and repurchases. If​ Zoom's equity cost of capital is 13.0 % and it has 5.0 million shares​ outstanding, what is its share price​ today?
Business
1 answer:
uranmaximum [27]3 years ago
5 0

Answer:

Consider the following calculations

Explanation:

The price per share is computed as shown below:

Present value of equity is computed as follows:

= $ 10 million / 0.13

= $76,923,076.92

Now we shall divide it by the number of shares to get the price per share

= $76,923,076.92 / 5,000,000

= $ 15.38 per share

Feel free to ask in case of any query relating to this question

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Studdard Controls recently declared a quarterly dividend of $1.25 payable on Thursday, April 25, to holder of record of Friday,
elena-14-01-66 [18.8K]

Answer:

April 11th

Explanation:

the dividends will be paid to the owner of the share one day before the record.  This is defined asthe Ex-date ofthe dividends.

DISCLAMER

Assuming it refers to 2019 Apil 12th

the previous business day will be April 11th (we should liook into the calendar and avoid counting Friday and saturdays

for the year 2019 April 12th is a friday so it is okay to define it as April 11th

7 0
3 years ago
Duane has a small woodworking business and saves the money for college. He stores his tools in his apartment. Duane would like t
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Answer:

First option is the right choice.

Explanation:

He will not have as much money for college classes, because he will have to pay for the trailer and its maintenance.

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8 0
3 years ago
Payday loans could be considered
Molodets [167]
C. subprime lending

Its not something you want to do all of the time
7 0
3 years ago
Which of the following refers to the availably of resources that make doing business with that country​ possible? A. Competitive
polet [3.4K]

Answer:

B. Economic infrastructure

Explanation:

Economic infrastructure -

It is the activities and the facilities that helps the development and operations of various sectors of the society , is referred to as economic infrastructure.

Economic infrastructure plays a major role in the proper functioning of the economy.

The enables to increase the productivity of the economy .

Hence, from the given statement of the question,

The correct option is B. Economic infrastructure  .

7 0
2 years ago
Brown Fashions Inc.'s December 31, 2018 balance sheet showed total common equity of $4,050,000 and 265,000 shares of stock outst
PIT_PIT [208]

Answer: $16.60

Explanation:

The following information can be gotten from the question:

Total common equity = $4,050,000 Shares of stock outstanding = 265,000

Net Income = $450,000

Dividends = $100,000

Based on the information given, the book value per share will be calculated as:

(Total common equity + Net income - Dividends) / Outstanding shares

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= $16.60

6 0
2 years ago
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