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Vedmedyk [2.9K]
3 years ago
8

Duff Inc. paid a 2.34 dollar dividend today. If the dividend is expected to grow at a constant 1 percent rate and the required r

ate of return is 11 percent, what would you expect Duff's stock price to be 4 years from now?
Business
1 answer:
Akimi4 [234]3 years ago
8 0

Answer:

$24.60

Explanation:

The computation of the price for 4 years from now is shown below:

Price = Dividend ÷(Required rate of return - growth rate)

where,

Dividend is

= Dividend × (1 + growth rate)^number of years

= $2.34 × (1 + 0.01)^5

= $2.46

All the other items would remain the same

So, the price is

= $2.46 ÷ (11% - 1%)

= $24.60

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Joan grows pumpkins. If Joan plants no seeds on her farm, she gets no harvest. If she plants 1 bag of seeds, she gets 500 pumpki
valkas [14]

Answer: Option (B) is correct.

Explanation:

Correct option: Decreasing marginal product.

Marginal product is the change in the level of output, when there will be an extra input employed in the production of a certain commodity.

So, Marginal Product = \frac{change\ in\ Q}{Change\ in\ I}

Where,

Q = Output

I = Input

Marginal product of 1st bag = 500

Marginal product of 2nd bag =  \frac{800-500}{2-1} = 300

Marginal product of 3rd bag =  \frac{900-800}{3-2} = 100

∴ From the above calculations, we can seen that as we employed one more bag of seeds as a result marginal product goes on diminishing.

Hence, Joan's production function exhibits decreasing marginal product.

3 0
3 years ago
On July 31, 2022, Cullumber Company had a cash balance per books of $6,360.00. The statement from Dakota State Bank on that date
Bogdan [553]

Answer:

Please see explanation below

Explanation:

Cullumber Company

Bank reconciliation statement

Cash balance per bank statement $7,910.80

Add: Deposits in transit $1,316.30

$9,227.1

Less outstanding checks ($1,975.10)

Adjusted cash balance per bank $7,252

Cash balance per books $6,360

Add Electronics funds transfer received $1,635

Totalled $7,995

Less:

Bank service charge $17

NSF check $690

Error in recording check no. 2480

($384 - $348) $36

Total balance to be deducted ($743)

Adjusted cash balance per books $7,252

3 0
3 years ago
Compute the payback for each of these two seperate investments:
fredd [130]

Answer:

a. 2.23

b. 3.21

Explanation:

a. Answer to Part A

Payback Period = Investment / Annual Cash Inflow

= 250000 / 112115

= 2.23

Answer to Part B

Payback Period = Investment / Annual Cash Inflow

= 200000 / 62375

= 3.21

Working Note

<em>Particulars                Case A     Case B </em>

After Tax Income  72115         39000

Add: Depreciation  40000       23375

Cash Inflow             11,2115         62375

<em>Particulars              Case A           Case B </em>

Cost of Machine     250000        200000

Less: salvage Value  10000         13000

Depreciable Value   240000        187000

Life of the Asset           6                  8

Annual Depreciation 40000         23375

8 0
3 years ago
What is Kevin’s net worth on May 31, 2013?<br> $4,050<br> $9,260<br> $13,200<br> $22,460
Alchen [17]

$4,050, i got that by adding up each size than subtracting the totals

4 0
3 years ago
Read 2 more answers
Companies may want to consider budgeting for contributions to employee loss expenses (such as funerals) as well as for counselin
nikdorinn [45]

Answer: Option (A)

Explanation:

Crisis management is known as or referred to as process through which the organization tends to deal with the unexpected and disruptive event which mostly threatens in order to harm an organization or the stakeholders. The crisis management is considered and known to be one of the most important and vital process in the public relations.

8 0
3 years ago
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