1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
VashaNatasha [74]
3 years ago
13

Shatin Intl. has 10 million shares, an equity cost of capital of 13% and is expected to pay a total dividend of $20 million each

year forever. It announces that it will increase its payout to shareholders. Instead of increasing its dividend, it will keep it constant and will start repurchasing $10 million of stock each year as well. How much will its stock price increase?
Business
1 answer:
Zanzabum3 years ago
3 0

Answer:

23.07 per share

Explanation:

\frac{divends}{return-growth} = Intrinsic \: Value

We will caltulate like the gordon model, but in this case growth= 0 and we are going to include the 10 millions stock repurchase in the dividend part of the equation.

Stock price= (future value of total dividends + repurchasing of stocks)/equity cost of capital)

(20 + 10)/0.13 = 230.77 MILLIONS

Then we divide by the number of shares:

230.77 MILLIONS/ 10 MILLIONS = 23.07 per share

You might be interested in
A number of activities that are a part of a company's quality control system are listed below.
Karolina [17]

Answer:

Following is the classification of  the costs associated with each of these activities that is prevention cost, appraisal cost, internal failure cost, or external failure cost.

(a) Product testing  - Appraisal Cost

(b) Product recall  - External Failures

(c) Product design  - Prevention cost

(d) Quality circle  - Prevention cost

(e) Inspection of goods - Appraisal Cost

Explantion cost:

Appraisal costs are costs incurred to detect defects in the poduct produce. Prevention cost are cost incurred to prevent detects in the product produce.

Internal failure costs are costs incurred to remove defects found before the customer receives the product or service. External failure costs are costs incurred to remove defects found after the customer receives the product or service.

8 0
3 years ago
Dorothy Taylor has won a state lottery and will receive a payment of $93,000 every year, starting today, for the next 20 years.
Firlakuza [10]

Answer: The answer is $1,092,865.5426

To the nearest whole dollar, we have:

$1,092,866

Explanation: from the question above, we will be calculating the present value of a cashflow of $93,000 over a period of 20 years, at a rate of 5.76%.

We will be performing a discounting operation.

Refer to the attached files below to see the calculations and how we arrived at the answer above.

8 0
4 years ago
Read 2 more answers
The liquidity approach to measuring money defines the M2 money supply as A. near monies. B. currency plus travelers checks and c
tatiyna

Answer:

The correct answer is C. M1 plus near monies.

Explanation:

The liquidity approach emphasizes the role of money as a store of value and downplays the role it plays as a means of payment. To assess the amount of money emphasizes that the essentially distinctive property of money is that it is the most liquid of assets.

The strict money supply or circulating medium (M1), which defines money as the money in the hands of the public and demand deposits (DV) is the usual most accepted formula as money. Therefore, money in the strict sense is listed as such in the monetary statistics of the International Monetary Fund (IMF) and many other financial institutions around the world.

7 0
4 years ago
a bacteria population starts with 200 bacteriaa and grows at a rate of r(t) = (450.268)e 1.12567t bacteria per hour. How many ba
Virty [35]

Answer:

11,513

Explanation:

Data provided in the question:

Initial bacteria = 200

Growth rate r(t) = (450.268)e^{1.12567t}

Now,

Total growth after 3 hours = \int\limits^3_0 {(450.268)e^{1.12567t}} \, dt

or

Total growth after 3 hours = 450.268\int\limits^3_0 {e^{1.12567t}} \, dt

or

Total growth after 3 hours =450.268[\frac{e^{1.12567t}}{1.12567}]^3_0

[ ∵ \int{d(e^x)}{dt}=\frac{e^x}{\frac{dx}{dt}}]

Thus,

Total growth after 3 hours = 400 × [{e^{1.12567t}]^3_0

or

Total growth after 3 hours = 400 × [{e^{1.12567(3)}-e^{1.12567(0)}]

or

Total growth after 3 hours ≈ 11313

Hence,

Total bacteria after 3 hours = Initial bacteria + Total growth after 3 hours

= 200 + 11313

= 11,513

4 0
3 years ago
Sheffield Corp. budgeted costs for 65000 linear feet of block are: Fixed manufacturing costs $24000 per month Variable manufactu
yulyashka [42]

Answer:

$984,000

Explanation:

The computation of the budgeted total manufacturing cost is shown below:

Budgeted total manufacturing costs in March = Fixed cost + Variable cost

= $24,000 + ($16 × 60,000)

= $24,000 + $960,000

= $984,000

We simply added the fixed cost and the variable cost in order to find out the budgeted total manufacturing cost

7 0
3 years ago
Other questions:
  • The benefits of belonging to professional organizations include the development of professional contacts and the opportunity to
    11·2 answers
  • State governments are responsible for sharing the costs with the federal government of all of the following except _____.
    12·2 answers
  • The market value of the equity of Hudgins, Inc., is $594,000. The balance sheet shows $33,000 in cash and $204,000 in debt, whil
    12·1 answer
  • What is the climate of central america?
    10·1 answer
  • Which of the following is the reason behind the slow growth in U.S. incomes during the 1970s and 1980s?
    12·1 answer
  • Gonzales Corporation generated free cash flow of $86 million this year. For the next two years, the company's free cash flow is
    10·1 answer
  • M2-28. Computing and Comparing Income and Cash Flow MeasuresPenno Corporation recorded service revenues of $200,000 in 2020, of
    10·1 answer
  • Read the following descriptions and identify the type of risk or term being described:
    9·1 answer
  • What are the possible consequences of making a late payment?
    6·1 answer
  • Singapore Airlines is rated one of the best airlines in the world and often requires ticket agents to serve as baggage handlers.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!