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tatiyna
3 years ago
6

Mercier Corporation's stock is selling for $95. It has just paid a dividend of $5 a share. The expected growth rate in dividends

is 8 percent. What is the required rate of return on this stock?
Business
1 answer:
Anni [7]3 years ago
4 0

Answer:

r = 13.68%

Explanation:

We can use Gordon growth model to calculate the stock price.

P = Do x (1+g) / r - g

P: stock price (Given: $95)

Do: Last dividend paid ($5)

g: Dividend growth rate (8%)

r: required return (Missing value)

By inputting the number into the above equation, we have the following:

95 = 5 x 1.08 / (r - 0.08)

--> r = 13.68%

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Explanation:

They protect the rights of the customers

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Read 2 more answers
The beginning inventory was 300 units at a cost of $10 per unit. Goods available for sale during the year were 1,300 units at a
Ugo [173]

Answer:

a. The number of units purchased in October = 400

The cost per unit = $12

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Ending inventory = $6,450

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Ending inventory = $5,750

Explanation:

a) Data and Calculations:

Beginning inventory    300 units  at $10 per unit = $3,000

May purchases            600 units at $11 per unit =     6,600

October purchases     400 units at $12 per unit =    4,800

Goods available        1,300 units                             $14,400

Ending inventory        550 units

Goods sold                 750 units

a. The number of units purchased in October = 400 (1,300 - 300 - 600)

The cost per unit = $12 ($4,800/400)

b-1. Cost of goods sold and ending inventory using FIFO method:

Cost of goods sold:

300 units  at $10 per unit = $3,000

450 units at $11 per unit =     4,950  $7,950

Ending inventory = $6,450 ($14,400 - $7,950)

b-2. Cost of goods sold and ending inventory using LIFO method:

Cost of goods sold:

350 units at $11 per unit =     3,850

400 units at $12 per unit =    4,800

Total Cost of goods sold = $8,650

Ending inventory = $5,750 ($14,400 - $8,650)

8 0
3 years ago
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Organizations may often intend to evaluate and their degree of vulnerability and test their security standard, hence, they employ the use of a simulated threat pattern whereby the red team act as a threat by using several infiltration techniques usually used by actual infiltrators, the blue team on the other hand acts to repel the advances of the red team by implementing security protocols and architecture capable of neutralizing the simulated attacks of the red team. This way organizations beef up their security in other to forestall actual potential attacks against capable of invading their information and digital systems.

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