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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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Answer:

Customs Duty is a tariff or tax imposed on goods when transported across international borders. The purpose of Customs Duty is to protect each country's economy, residents, jobs, environment, etc., by controlling the flow of goods, especially restrictive and prohibited goods, into and out of the country.

8 0
3 years ago
Jed is an electrician. Jed and his wife are accrual basis taxpayers and file a joint return. Jed wired a new house for Alison an
poizon [28]

Answer:

b. $3,000

Explanation:

Jed was refused payment of $5000, the court awarded only $2000, rest $3000 is a loss for Jed. He can only deduct $3000 and not full $5000 as $2000 has been realized.

Therefore, The amount of loss may Jed deduct in the current year is $3,000.

3 0
3 years ago
According to the United Nations' stages of economic development for classifying countries with respect to levels of industrializ
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Answer:

More-deceloped country

Explanation:

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3 years ago
Waterway Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An emplo
Masja [62]

Answer:

$69,000

Explanation:

The double-declining method uses twice the rate of the straight-line depreciation method.  

In this case, we need to determine the depreciation rate under the straight-line method. The asset has a useful life of 5 years.

the depreciation rate = 1/5 x 100

=0.2 x 100

=20%

The Depreciation rate for the double-declining method is 40%. The straight-line method considers salvage value at the beginning, but double-declining depreciates until the salvage value.

In the first year under the double-declining method, the depreciation amount was $27,600.

It means 40% of the asset cost is $27,600.

The asset cost is 100%

40%=$27,600

100% = 27,600/40 x 100

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8 0
3 years ago
First​ Class, Inc., expects to sell 26 comma 000 pool cues for $ 13.00 each. Direct materials costs are $ 2.00​, direct manufact
Nastasia [14]

Answer:

$231,140

Explanation:

The computation of the amount reported in the cost of goods sold is shown  below:

= Number of pool cues sold × total manufacturing cost per pool cue

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And, the total manufacturing cost per pool cue would be

= Direct Materials per cue + Direct manufacturing Labor per cue + Manufacturing Overhead per cue

= $2 + $6 + $0.89

= $8.89

Now put these values to the above formula

So, the value would be equal to

= 26,000 cues × 8.89

= $231,140

6 0
3 years ago
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