Answer:
The current share price is $54.29
Explanation:
Hi, to find the price of this share, we need to bring to present value all the future cash flow that this share will provide. Since the dividend is a constant dividend, we can find the price using the following equation.
![Price=\frac{Div((1+r)^{n}-1) }{r(1+r)^{n} }](https://tex.z-dn.net/?f=Price%3D%5Cfrac%7BDiv%28%281%2Br%29%5E%7Bn%7D-1%29%20%7D%7Br%281%2Br%29%5E%7Bn%7D%20%7D)
where:
r= required rate of return of the stock
Div = constant dividend (in our case, $7.55
n = years in which the share will provide dividends
Everything should look like this
![Price=\frac{7.55((1+0.11)^{15}-1) }{0.11(1+0.11)^{15} }=54.29](https://tex.z-dn.net/?f=Price%3D%5Cfrac%7B7.55%28%281%2B0.11%29%5E%7B15%7D-1%29%20%7D%7B0.11%281%2B0.11%29%5E%7B15%7D%20%7D%3D54.29)
So, the price of the stock today would be $54.29
Best of luck.
Answer:
Ending inventory value= $380,000
Explanation:
Giving the following information:
Costs per unit are: direct materials $25, direct labor $12, and variable overhead $1.
Ending inventory in units= 10,000
<u>Under the variable costing method, the unit product cost is calculated using direct material, direct labor, and variable overhead.</u>
Unit product cost= 25 + 12 + 1= $38
Ending inventory value= 38*10,000= $380,000
Answer: sell covered calls
Explanation:
A retired customer that has a portfolio of blue chip stocks is looking to supplement his retirement income. An appropriate recommendation would be to sell covered calls.
It should be noted that a covered call is a financial transaction that takes place when a call option is sold by an investor even though the investor still owns part of the security based on what's sold.
Answer:
The correct answer is E
Explanation:
Marketing is the procedure or the process of interesting the potential customers or consumers as well as the clients in products or services. In short, it is the procedure which involves distributing, promoting, selling and researching the services or the products.
Therefore, the marketing is the set of institutions, activity and the processes for communicating, delivering and creating that value for the clients, society and customers at huge.
Answer:
<u>Option B</u> must pay him as an employee, withhold appropriate taxes and issue a W-2 at year end
Explanation: He is paid based on hours worked, and uses the company equipment thus is an employee who is controlled by an employer. The independent contractors buy their own supplies, provide their own equipment and paid based on tasks performed