Consumer surplus

Could I Industries just paid a dividend of $1.62 per share. The dividends are expected to grow at a rate of 20 percent for the n

nata0808 [166]

Answer:

Explanation:

Using the dividend growth model = Do(1+g)/Ke-g

Do=1.62$

G=4%

Ke=12%

Do(1+g)/Ke-g = 2.0736(1+4%)/12%-4%

= 1.6848

/8%

= 53.916

Year Year Year Year Year

0 1 2 3 4

20% 20% 20% 20%

Dividend 1 1.2 1.44 1.728 2.0736

Ifninty dividend 55.91*

Total Cashflows 1 1.2 1.44 1.728 55.98

Pres.Val @12% 1 1.07142 1.14795 1.22995 35.583

Value of stock 40.030

4 0

3 years ago

Compute net income for 2019 by comparing total equity amounts for these two years and using the following information: During 20

satela [25.4K]

Answer:

net income during 2019 = $109,045

Explanation:

total stockholder equity 2018 = assets - liabilities = $293,500 - $79,245 = $214,255

total stockholder equity 2019 = assets - liabilities = $497,512 - $177,212 = $320,300

change in equity from 2018 to 2019 = $106,045

$33,000 can be explained by additional capital invested, and the remaining $73,045 corresponds to change in retained earnings

change in retained earnings = net income - dividends distributed

$73,045 = net income - $36,000

net income = $109,045

7 0

3 years ago

Diminishing marginal product suggests that the marginal A. cost of an extra worker is unchanged. B. cost of an extra worker is l

MArishka [77]

Answer:

The correct answer is letter "D": product of an extra worker is less than the previous worker's marginal product.

Explanation:

The Law of Diminishing Marginal Productivity indicates that increasing one variable while holding others the same can initially increase output but eventually adding more of that variable results in lower return rates. This law helps explain that it is not always the best way to increase income by increasing production.

<em>Initially, companies recruiting additional workers would boost production until too few machines or not enough space is sufficient to accommodate everyone. Then, the production rate will decrease.</em>

7 0

3 years ago

Which of the following is a likely reason that a company would move its facility from one location to another?

Finger [1]

A likely reason that a company would move its facility from one location to another is that they would like to access various modes of transportation, such as boats and/or railroad.

7 0

3 years ago

anufacturers consider selling and administrative costs to be A. prime costs. B. conversion costs. C. inventoriable costs. D. per

malfutka [58]

Answer:

D. period costs.

Explanation:

The period cost is the cost which is incurred during the passage of time. It includes the major part of the ling and administrative expenses of the income statement. This cost is not capitalized. It is to be allocated based on the expenses that are against the revenue.

Example - Depreciation on delivery trucks, advertising expense, etc

8 0

3 years ago