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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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3 years ago
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What is the purpose of a marketing plan?
Elza [17]

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Explanation:

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4 0
3 years ago
If the cost of goods sold is more than the cost of goods manufactured, then
ivann1987 [24]

Answer:

C. Finished Goods Inventory has decreased.

Explanation:

Cost of goods manufactured (COGM) increases when finished goods inventory is <em>produced</em>, while cost of goods sold (COGS) increases when finished goods inventory is <em>sold</em>. If COGS has been increasing faster than COGM has been increasing, the company has been selling more goods than it has been producing. Therefore, it must have sold goods from its surplus of finished goods inventory. Thus, finished goods inventory has decreased.

8 0
3 years ago
If a family spends its entire budget in a given time frame, the family can afford either 10 restaurant meals or 30 home meals. A
Andrej [43]

The opportunity cost of one extra restaurant meal in the time frame is 3 home meals.

<h3>What is opportunity cost?</h3>

Opportunity cost of the next best option forgone when one alternative is chosen over other alternatives. When the family chooses to go for the restaurant meal, they forgo the opportunity for a home meal.

Opportunity cost  = 30 / 10 = 3

To learn more about opportunity cost, please check: brainly.com/question/26315727

7 0
2 years ago
Beginning inventory, purchases and sales data for tennis rackets are as follows:
IRISSAK [1]

Answer:

Cost of goods sold = $836

Ending inventory = $315

Explanation:

a) Data and Calculations:

Date     Description    Units  Unit Price  Balance

Apr. 1    Inventory         12         $45       $540

Apr. 11  Purchase          13         $47       $1,151 ($540 + 13 * $47)

Apr. 14 Sale                 (18)      $100        $315 ($7 * $45)

Sales revenue = $1,800 ($100 * 18)

Cost of goods sold = $836 ($47 * 13 + $45 * 5)

Ending inventory = $315  ($7 * $45)

b) Under the LIFO (Last in, First out) inventory valuation method, it is assumed that goods that were purchased closest to the selling date were the ones to be sold while those purchased earlier remain in inventory.

4 0
2 years ago
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