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artcher [175]
3 years ago
9

The next dividend payment by Hoffman, Inc., will be $2.65 per share. The dividends are anticipated to maintain a growth rate of

4.5 percent forever. If the stock currently sells for $43.15 per share, what is the required return
Business
1 answer:
-Dominant- [34]3 years ago
5 0

Answer: 6.42%

Explanation:

To calculate this, we use the formula for the Dividend Discount Model/ Gordon Growth Formula as follows:

P = D1/(r - g)

Where,

P = current stock price

D1 = Next dividend

r = required return

g = growth rate

We can make r the subject of the equation by,

P = D1/(r - g)

P(r - g) = D1

r - g = D1/P

r = D1/P + g

Calculating therefore we have,

r = 2.65/43.15 + 0.045

= 0.06417728852

= 6.42%

6.42% is the required return.

If you need any clarification do comment.

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Feeling "He who does the work of the King ought to be King," Pope Zacharias helped whom become King of the Franks in 751?
Gnom [1K]

Answer:

(C) Pepin The Short

Explanation:

In 741AD, Pepin took over from his father as Mayor of the Palace. He ruled alongside his elder brother.

In 743AD, Pepin and his brother chose Childeric to be the <em>apparent</em> King of the Franks. Both brothers still wielded the functional power to the throne. Childeric was just to 'appear to be' the King (unknown to him though).

In 747AD, Pepin's brother stepped down (intentionally and on his own accord). Pepin then became the only ruler of the entire Frankish territory.

In 751AD, Pepin, without full support from his clan, lured Childeric into monastery in order to remove him as the 'face of Francia'.

Pope Zacharias helped Pepin to be proclaimed King of the Franks, against all opposition.

3 0
3 years ago
The Mary Company primarily sells dishes, and recently purchased a cardboard box company. Mary's new cardboard box division has n
fgiga [73]

Answer: $1.50

Explanation:

Based on the information given in the question, we are informed that the variable cost of each box is $1.50 and usually has a contribution margin of $0.80 per box.

We should note that the minimum transfer price that the box division should find as acceptable will be the relevant cost. In this case, the relevant cost is given as $1.50 pee box and therefore, the minimum transfer price will be $1.50.

8 0
2 years ago
Employees who are willing to step forward, usually at great personal sacrifice, to reveal wrongdoing of the part of their employ
Softa [21]

Answer:

They are guilty of nothing, what they are doing is called whistle-blowing and it is not a crime, it a way of stopping crimes from being committed.

Explanation:

A whistle-blower is an employee or any person within an organization that informs about illegal activities carried out within the organization. Sometimes whistle-blowers can even earn money form doing the right thing. For example, the IRS pays whistle-blowers up to 30% of additional money it collects by using information provided by whistle-blowers.

6 0
3 years ago
This year, Herb Partnership generated $740,000 ordinary business income. Herb has two equal partners: Savory LLC and Sweet Corp.
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No equivalent fraction of the equation is instructions to follow and analyze the diagram below the complete 5509 50 507MLG equals 43.6%, MLI equals 46.4%, GH equals $35.81 calls equals style equation to the 4396 equals I’m
7 0
3 years ago
On January 1, DogMart Company purchased a two-year liability insurance policy for $22,800 cash. The purchase was recorded to Pre
GarryVolchara [31]

Answer:

Adjusting Entry

Date             Accounts/ Description          Dr.        Cr.

January 31   Insurance Expenses            $950

                    Prepaid Insurance                            $950

Explanation:

On January 1 insurance purchased will be considered as the prepaid insurance and it is for 2 years ( 24 months ). On January 31 one month's insurance expense has been accrued and it should be recorded and balance for this accrual should be transferred from prepaid insurance to insurance expense account.

Insurance paid =  $22,800

Per month Insurance = $22,800 / 24 = $950 per month

7 0
3 years ago
Read 2 more answers
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