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polet [3.4K]
3 years ago
8

Brickhouse is expected to pay a dividend of $3.00 and $2.40 over the next two years, respectively. After that, the company is ex

pected to increase its annual dividend at 3.6 percent. What is the stock price today if the required return is 11 percent?
Business
1 answer:
Damm [24]3 years ago
6 0

Answer:

$31.9211

Explanation:

We discount the future two year dividends at the required rate of return

and solve for the present value of the infinite series of dividends growing at 3.6% with the dividend grow model:

\frac{D_1}{r-g} =PV

\frac{2.4 (1.036)}{0.11-0.036} = PV

PV 33.6

Then we discount this by the two years ahead of time these cashflow start and add them to get the PV of the stock which is their intrinsic market value

\left[\begin{array}{ccc}Year&cashflow&PV\\&&\\1&3&2.7027\\2&2.4&1.9479\\2&33.6&27.2705\\&TOTAL&31.9211\\\end{array}\right]

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8 0
2 years ago
Cosmetics makers focus on the unique needs of customers of different ages. The cosmetics makers recognize the importance of ____
solniwko [45]

Answer:

market segments

Explanation:

Market segments -

It refers to the portion of people , who have some common features , are referred to as market segment .

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8 0
3 years ago
A1 Corp. uses the FIFO method for its process costing calculations. Beginning inventory in the mixing processing center consiste
Aleks04 [339]

Answer:

17,750 units

Explanation:

<u>Calculation of equivalent units for conversion costs - FIFO</u>

To finish Opening Work in Process  (5,000 units x 35%)            1,750

Started and Completed [(19,000 units  - 5,000 units) x 100%]  14,000

Ending Work in Process (4,000 units x 50%)                              2,000

Equivalent units of production                                                     17,750

therefore,

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8 0
2 years ago
Sơ đồ nhân sự của nhà hàng
Nata [24]

Answer:

Science

Explanation:

Multiple choice Questions about the statement u write

4 0
3 years ago
WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for t
antiseptic1488 [7]

Answer:

B) yes no yes

Explanation:

Particulars                      Product X                 Product Y                   Product Z

Units Produced                 2,000                        2,500                         3,500

Sales value at split-off        $15                              $19                              $20

Add: Processing cost         $5                                $7                                 $7

Sales after processing        $24                            $24                              $29

Profit after

processing further     $24- $15 - $5          $24 - $19 - $7         $29 - $20 - $7    

                                          = $4                       = - $2                             = $2

                                            Yes                           No                              Yes

Since revenue after split off is from Product X and product Z, Product Y is creating negative profit that is loss from further processing.

Correct option    

B) yes no yes

4 0
2 years ago
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