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Lostsunrise [7]
3 years ago
10

Dabney electronics currently has no debt. its operating income is $20 million and its tax rate is 40%. it pays out all of its ne

t income as dividends and has a zero growth rate. the current stock price is $40 per share, and it has 2.5 million shares of stock outstanding. if it moves to a capital structure that has 40% debt and 60% equity optional final (based on market values, its investment bankers believe its weighted average cost of capital would be 10%. what would its stock pric
Business
1 answer:
Savatey [412]3 years ago
5 0

<span>If Dabney electronics currently has no debt and its operating income is $20 million and its tax rate is 40%, thus it pays out all of its net income as dividends and has a zero growth rate, then its stock price is $48.</span>

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When Home Movies Inc. opened stores in other countries, it increased the company's international market share. Home Movies took
olga55 [171]

Answer:

<h2>In this instance,Home Movies Inc. took advantage of market expansion opportunity to enhance market share.Hence,the correct answer is market expansion.</h2>

Explanation:

In Microeconomics,the practice of market expansion refers to the enhancement of business activities or selling of goods and services into newer sections of the market which encompasses factors such as demographic,economic,geographical,social etc.In this context,the geographical expansion of market can possibly include international markets as well as long it can comprehensively cover the desired consumer group which can lead to higher revenue generation and potential market share.It is an extremely formidable economic strategy for any business organisation or company to expand the consumer accessibility by tapping into new geographical areas in the global or international market.An effective market expansion,however, requires a thorough and considerable market research with a specific emphasis on the the potential new markets that the existing business can easily reach and the new consumer base in those markets who will most probably like the products and/or services sold by the business based on various preferential attributes.This can evidently generate immense opportunities for sales and overall economic growth.

6 0
4 years ago
Regardless of area of expertise, a public school pays all teachers the same annual wage. At $70,000, it hires good teachers in a
const2013 [10]

Answer:

$100,000

Explanation:

Given data :

It is given that a public school pays all the teachers in its school the same annual wage.

The public school hires good teachers in all the areas except science, at a price of = $70,000

The school could hire only poor science teachers because the demand of science teachers are high.

Amount to be paid to hire good science teachers = $90,000

We know,

$\text{marginal cost} = \frac{\text{change in cost}}{\text{change in quantity}}$

Change in cost = $90,000 - $70,000

                          = $20,000

∴  $\text{marginal cost}=\frac{20000}{2}\times 10$

                           =$100,000

4 0
3 years ago
The petty cash fund of the Brooks Agency is established at $230. At the end of the current period, the fund contained $155 and h
Georgia [21]

Answer and Explanation:

The journal entries are given below:

1. Petty cash A/c Dr $230  

      To Cash A/c              $230

(Being petty cash fund established)

For recording this we debited the petty cash account as it increased the assets and credited the cash as it decreased the asset

2  Entertainment expense A/c Dr $41  

  Postage expense A/c Dr $17

  Printing expense A/c Dr $17

                                       To Cash A/c Dr $75  ($230 - $155)

(Being reimbursement of the fund is recorded)

For recording this we debited all expenses as it increased the expenses and credited the cash as it decreased the asset

4 0
3 years ago
Which of the following agencies is the lead agency for prevention, health data, epidemic investigation, and public health measur
Mandarinka [93]

Answer:

The answer is Centers for  disease control and prevention.

Explanation:

The Centers for disease control and prevention is the lead agency for prevention, health data, epidemic investigation, and public health measures aimed at disease control and prevention

3 0
3 years ago
Item 1Item 1 Weismann Co. issued 11-year bonds a year ago at a coupon rate of 11 percent. The bonds make semiannual payments and
Mamont248 [21]

Answer:

Price of the bond is $940.

Explanation:

Price of bond is the present value of future cash flows. This Includes the present value of coupon payment and cash flow on maturity of the bond.

As per Given Data

As the payment are made semiannually, so all value are calculated on semiannual basis.

Coupon payment = 1000 x 11% = $110 annually = $55 semiannually

Number of Payments = n = 11 years x 2 = 22 periods

Yield to maturity = 12% annually = 6% semiannually

To calculate Price of the bond use following formula of Present value of annuity.

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

Price of the Bond =$55 x [ ( 1 - ( 1 + 6% )^-22 ) / 6% ] + [ $1,000 / ( 1 + 6% )^22 ]

Price of the Bond = $55 x [ ( 1 - ( 1.06 )^-22 ) / 0.06 ] + [ $1,000 / ( 1.06 )^22 ]

Price of the Bond = $662.29 + $277.5

Price of the Bond = $939.79 = $940

8 0
3 years ago
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