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padilas [110]
3 years ago
11

What should be the price of a common stock paying $3.50 annually in dividends if the growth rate is zero and the discount rate i

s 8%?
Business
1 answer:
katrin [286]3 years ago
3 0

Answer:

$43.75

Explanation:

Dividend discount model with zero growth assumes that the Company shall continue to pay the same amount of dividend in infinity. The formula for calculating price of such stock is

Price = Annual Dividend / Discount rate

Price = $3.5 / 8%

Price = $43.75 / per share

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How can the business sector contribute more positively to the economy​
kaheart [24]

Answer:

Small businesses contribute to local economies by bringing growth and innovation to the community in which the business is established. Small businesses also help stimulate economic growth by providing employment opportunities to people who may not be employable by larger corporations.

Explanation:

Hope it helps! Correct me if I am wrong :>

Im sure about my answer :>

If you dont mind can you please mark me as brainlest?

6 0
3 years ago
How does a country's GDP help you determine if its economy is strong or weak?
IceJOKER [234]
The GDP means gross domestic product. When it increases then it means the economy is getting stronger or is already strong. If it decreases then it becomes weaker or is already weak.
8 0
3 years ago
Read 2 more answers
Presented below is a list of costs and expenses usually incurred by Barnum Corporation, a manufacturer of furniture, in its fact
andreev551 [17]

Answer:

Explanation:

We know that

The manufacturing overhead would be comprised of

= Factory utilities + Depreciation on factory equipment + Property taxes on factory building + Indirect factory labor + Indirect materials + Factory repairs+ Factory manager salary + insurance on factory machine

The direct material would be the material which are used to make the product or we can say it would be directly related to the product

And, the direct labor includes the labor part which are making the products and in return they received the wages

So, the categorization is shown below:

1. salaries for assembly line inspectors  - Direct labor or manufacturing overheads

2. insurance on factory machine  - manufacturing overheads

3. property taxes on the factory building  - manufacturing overheads

4. factory repairs  - manufacturing overheads

5. upholstery used in manufacturing furniture  - Direct material

6. wages paid to assembly line workers  - Direct labor

7. factory machinery depreciation  -  manufacturing overheads

8. glue,nails,paint, and other small parts used in production  -  manufacturing overheads

9. factory supervisors salaries  -  manufacturing overheads

10. wood used in manufacturing furniture - Direct material

7 0
3 years ago
Ruth Company produces 1,000 units of a necessary component with the following costs: Direct Materials $34,000 Direct Labor 15,00
Snowcat [4.5K]

Answer:

Option B is correct

The maximum price to be paid is = $64000

Explanation:

To determine the the maximum price we would compute using the relevant costs of internal production.

<em>The maximum price to be paid to external supplier should be the total relevant costs associated with internal production.</em>

Total relevant cost of internal production = 34,000 + 15,000 +9000 + 6000

The maximum price to be paid is = $64000

Note that the fixed overhead  of $6000 is associated with the internal production the balance of 4,000 is irrelevant and would be incurred either way.

4 0
3 years ago
The rational-ignorance effect refers to the a. lack of incentive voters have to become well-informed about candidates and issues
densk [106]

Answer:A. The lack of incentive voters have to become well-informed about candidates and issues because their vote is unlikely to affect the outcome of an election.

Explanation: Rational ignorance is a term used to describe the intentional decline or refusal by a person or group of persons to gain certain knowledge,mainly after considering the cost and benefits attached to gaining that knowledge.

When people choose not to learn a particular trade,subject etc after comparing the costs to the potential gains.

RATIONAL IGNORANCE IS ALSO CONCERNED WITH THE DECISION OF VOTERS WHEN MAKING CHOICE OF NOT PARTAKING IN AN ELECTION BECAUSE THEY BELIEVE THAT THEIR VOTES DO NOT COUNT OR HAVE EFFECTS ON THE FINAL OUTCOMES ETC.

5 0
3 years ago
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