Which of the following is generally true about 401(k) and 403(b) retirement plans?

Dividends-R-Us, Corp. is paying a dividend of $3 a share today. It is expected that the company will continue its policy of incr

leonid [27]

Answer:

Amount for each stock to be paid at maximum = $54

Explanation:

Using Dividend growth model, we have,

$P_0 = \frac{D_1}{K_e - g}$

Where $P_0$ = Expected price of share today

$D_1$ = Dividend to be paid at this year end

= $D_0 + g$

$K_e$ = Required return on investment

g = Growth rate

Therefore,

$D_1$ = = $3 + 8% = $3.24

$P_0 = \frac{3.24}{0.14-0.08}$

$P_0$ = $54

Therefore, current price for this share or sock to be paid = $54 per share.

5 0

3 years ago

If the government reduces transfer payments, what happens to the budget deficit? What curve does this change in the market for l

sleet_krkn [62]

Answer:

The budget deficit will decrease
The curve it changes is the loanable funds curve
The loanable funds curve shifts to the right
The equilibrium interest rate falls

Explanation:

The reduction in transfer payments by Government will cause the budget deficit of the Government to decrease and also the the decrease in the Budget deficit will lead to the availability of loanable funds thereby causing the loanable funds curve to shift to the right.

With the availability of loanable funds the equilibrium interest rate will fall below its usual equilibrium level.and the Government can reduces transfer payments to achieve all of this.

5 0

4 years ago

The following data represent the beginning inventory and, in order of occurrence, the purchases and sales of Quebec, Inc. for an

STatiana [176]

Answer:

Quebec, Inc.

Assuming Quebec, Inc. uses FIFO periodic inventory procedures, the ending inventory cost is:

= $2,220.

Explanation:

a) Data and Calculations:

Units Unit Cost Total Cost Units Sold

Beginning Inventory 32 $54 $1,728

Sale No. 1 10

Purchase No. 1 28 60 1,680

Sale No. 2 32

Purchase No. 2 20 57 1,140

Totals 80 $4,548 42

Ending Inventory using FIFO periodic inventory system:

Units of ending inventory = 38 (80 - 42)

Units are from: Units Unit Cost Total Cost

Purchase No. 1 18 60 $1,080

Purchase No. 2 20 57 1,140

Ending Inventory 38 $2,220

7 0

3 years ago

What is a dividend in business?

Mars2501 [29]

A dividend is a payment made by a corporation to it's shareholders usually as aa distribution of profits

4 0

3 years ago

The balance sheet of California Clothing reports total equity of $600,000 and $700,000 at the beginning and end of the year, res

kolbaska11 [484]

Answer:

10%

Explanation:

return on equity = net income / average equity = $65,000 / [($600,000 + $700,000) / 2] = $65,000 / $650,000 = 0.1 = 10%

Return on equity (ROE) measures the profitability of a company by comparing the net income generated in the year against the company's equity. The higher the ROE, the more profitable the company is. In this case, each dollar invested generates $0.10 in profit.

5 0

3 years ago