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erma4kov [3.2K]
3 years ago
8

Gray Manufacturing is expected to pay a dividend of $1.25 per share at the end of the year (D1 = $1.25). The stock sells for $27

.50 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate?
Business
1 answer:
natali 33 [55]3 years ago
4 0

Answer:

5.95%.

Explanation:

Expected dividend (D1) $1.25

Stock price $27.50

Required return 10.5%

Dividend yield 4.55%

Growth rate = rS - D1/P0 = 5.95%.

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On Jan. 2, Callie Taylor invests $40,000 into the business in exchange for common stock. She journalize the transaction as follo
castortr0y [4]

Answer:

See explanation section.

Explanation:

The correct journal to record this transaction is -

Cash                    Debit          $40,000

Common stock   Credit         $40,000

Note: As Callie Taylor invests the amount in exchange for common stock, An asset (cash) will be increased, and equity (common stock) will be increased. An increase in asset means debit, while an increase in equity means credit.

6 0
3 years ago
What has a company accomplished when it creates a financial statement that projects income and expenditures over a specified fut
Fofino [41]

Answer:

Budgets

Explanation:

Budgets are prepared for a future date and it creates a basic estimate and projection of future income and expenditures.

The income statement is prepared which presents the income and expenditure for a period which has lapsed.

Basically for a period that is past now. When future projections are created based on analysis and expectations then it is called budget.

Budgets reflects the expected performance of the company in the near future, based on the estimate about what the company members can perform.

6 0
3 years ago
Lessee contracts to deliver 50 luxury automobiles to lessor no later than august 15th. on august 1st, lessee delivers the wrong
puteri [66]
<span>Because the initial delivery was made on August 1st and the original agreement was for the delivery to be no later than August 15th, that gives the lessee exactly 14 days to correct the problem and make good on the contract.</span>
3 0
3 years ago
Lopez Corporation incurred the following costs while manufacturing its product.
IrinaK [193]

Answer:

(a) $353,400

(b) $375,200

Explanation:

Given that,

Materials used in product = $123,900

Advertising expense = $49,600

Depreciation on plant = 67,500

Property taxes on plant = 23,400

Property taxes on store = 8,420

Delivery expense = 24,000

Labor costs of assembly-line workers = 116,200

Sales commissions = 41,100

Factory supplies used = 24,600

Salaries paid to sales clerks = 53,000

(a) Cost of goods manufactured:

= Material used in product + Depreciation on plant + Labor costs of assembly-line workers + Factory supplies used + Property taxes on plant + Beginning Work in process inventory - Ending Work in process inventory

= $123,900 + $67,500 + $116,200 + $24,600 + $23,400 + $14,700 - $16,900

= $353,400

(b) Cost of goods sold:

= Cost of goods Manufactured + Opening finished goods - Closing finished goods

= $353,400 + $70,700 - $48,900

= $375,200

3 0
3 years ago
Manuel borrowed a total of $4000 from two student loans. One loan charged 4% simple interest and the other charged 3.5% simple i
hichkok12 [17]

Answer:

the principal amount at a rate of 4% is 2000

principal amount at a rate of 3.5% is 4000-2000 =2000

Explanation:

We have given total amount borrowed = $4000

Let x amount is borrowed at a rate of 4%

So $4000-x is borrowed at rate of 3.5%

Total interest = $150

We know that simple interest =\frac{principal\ amount\times rate\times time}{100}

So \frac{x\times 4\times 1}{100}+\frac{(4000-x)\times 3.5\times 1}{100}=150

4x+14000-3.5x=15000

0.5 x=1000

x = 2000

So the principal amount at a rate of 4% is 2000

And principal amount at a rate of 3.5% is 4000-2000 =2000

7 0
3 years ago
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