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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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Which of the following is the number of people receiving Social Security payments? 55 million 58 million 66 million 71 million
SVETLANKA909090 [29]

the answer is 66 million people

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2 years ago
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Lauren Clark works for a pottery shop. She works 40-hour weeks (5 days) and gets paid $25 per hour. If she exceeds her normal 40
-Dominant- [34]

Answer:

D. $950;425

Explanation:

Before solving the problem, it is convenient to define the concepts of direct labor and indirect labor. The former is the worker's productive labor, such as operation of machinery, manufacture of products or customer service. In the example, direct labor equals the 38 hours that Lauren Clark really worked, for which she was paid $ 950 (38 multiplied by the pay that is $25).

For its part, indirect labor is not related to the transformation of inputs into finished products, but is still recorded in the company's accounting. Lauren Clark, in addition to the 38 hours she actually worked, was paid an additional eight hours in which she did not perform any activity, because the shop was closed. So, these 8 hours can be considered as non-productive or indirect labor. In monetary terms, this equals $200 (8 multiplied by $25).

Moreover, Lauren Clark worked 1.5 additional hours for four days, which allowed her to exceed her 40 normal hours and thus be able to access a bonus. This incentive is not directly associated with goods transformation processes, so it also constitutes indirect labor. In monetary terms, this equals $225:

$225 = (1.5*4)*37.5

Here, the number of additional hours worked was multiplied by the number of days (1.5 * 4), and this product was multiplied by the salary, which in this case is 37.5, since for these additional hours you are paid a salary and a half.

Therefore, the total indirect labor is $425.

5 0
2 years ago
Sam and Richard work at the local glue factory. Recently, Sam, who is a more experienced worker, has begun to establish a protég
Elis [28]

Answer:

cultivation

Explanation:

In the cultivation phase, the mentor should provide the mentor with strategies to assist in their development and growth in the organization. The mentor can establish these growth opportunities by providing advice on the ease and difficulties he faces, as well as recognizing the skills of his mentor and, where possible, providing feedback so that independence is gradually achieved. Analysis, evaluation and review of work and incentives are also crucial practices for the effectiveness of the cultivation phase.

3 0
3 years ago
Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company
love history [14]

Answer:

$25,760,000

Explanation:

The net amount of decrease and increase of cash a business or individual owns.

To find the proper cash flow amount used as the initial investment in fixed assets, use the following:

Calculation of initial investment outflow = cost of land + cost of plant + grading cost

= $9,600,000 + 15,200,000, + $960,000

= $25,760,000

Calculation of initial investment outflow = $25,760,000

Therefore the initial investment outflow is $25,760,000

4 0
3 years ago
On December 31, 2016 before adjusting entries, Accounts Receivable for Nickolas Company had a debit balance of $200,000, and the
Karo-lina-s [1.5K]

Answer:

b. The balance of the Allowance for Doubtful Accounts will be $22,000 after adjustment.

Explanation:

If credit losses are estimated at 1% of credit sales than balance of allowance for doubtful account after adjustment will be = $6,000 + $1,600,000 * 1%

= $6,000 + $16,000

= $22,000

4 0
2 years ago
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