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hram777 [196]
3 years ago
10

1) The Pet Company has recently discovered a type of rock which, when crushed, is extremely absorbent. It is expected that the f

irm will experience (beginning now) an unusually high growth rate (20%) during the period (3 years) when it has exclusive rights to the property where this rock can be found. However, beginning with the fourth year the firm's competition will have access to the material, and from that time on the firm will assume a normal growth rate of 8% annually. During the rapid growth period, the firm's dividend payout ratio will be relatively low (20%), to conserve funds for reinvestment. However, the decrease in growth will be accompanied by an increase in dividend payout to 50%. Last year's earnings were $2.00 per share (E0) and the firm's cost of equity is 10%. What should be the current price of the common stock?
Business
1 answer:
Olenka [21]3 years ago
5 0

Answer:The Pet Company has recently discovered a type of rock which, when crushed, is extremely absorbent. It is expected that the firm will experience (beginning now) an unusually high growth rate (20%) during the period (3 years) when it has exclusive rights to the property where this rock can be found. However, beginning with the fourth year the firm's competition will have access to the material, and from that time on the firm will assume a normal growth rate of 8% annually. During the rapid growth period, the firm's dividend payout ratio will be relatively low (20%), to conserve funds for reinvestment. However, the decrease in growth will be accompanied by an increase in dividend payout to 50%. Last year's earnings were $2.00 per share (E0) and the firm's cost of equity is 10%. What should be the current price of the common stock?

Explanation:

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Your spouse is a teacher at the local elementary school. Which retirement plan would she most likely have?
Mamont248 [21]
The retirement plan she most likely has is the 401(k)

Well, actually both 401k and 403 b offer similar system of retirement. But 401k is more commonly used by middle-lower class worker, including elementary school teacher
7 0
3 years ago
Innove Tech is a technological firm that wants to build a global service delivery system. It has consulted a larger firm, Ziff C
dimaraw [331]

Answer:

(C) Acquisition cost

Explanation:

The correct word for the given statement is acquisition cost

So option (c) is correct option

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When securing property, obtaining expenses can incorporate looking over, shutting charges, and taking care of liens.

4 0
3 years ago
What types of businesses are likely to have an informal corporate culture?
Musya8 [376]
A computer worker i guess

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3 0
3 years ago
Read 2 more answers
Calculate the yield to maturity (YTM) for a one-year bond with a purchase price of $8,000, a face value of $10,000, and a curren
Mazyrski [523]

Answer:

yield to maturity YTM = 35%

Explanation:

given data

purchase price = $8,000

face value = $10,000

current yield = 10%

solution

we get here yield to maturity YTM

so first we get Annual Coupon by current yield that is express as

Current yield = annual coupon  ÷ current price   ..............1

put here value we get

Annual Coupon = 10 % ×  8,000

Annual Coupon = $800

now we get YTM by purchase price  that is  

purchase price = Annual Coupon ÷ ( 1+YTM ) + face value ÷ ( 1+YTM )  .......2

put here value we get

8,000 =  \frac{800}{1+YTM} +\frac{10000}{1+YTM}

solve it we get

yield to maturity YTM = 35%

5 0
3 years ago
Tony's Deli has cash of $145, accounts receivable of $99, accounts payable of $219, and inventory of $413. What is the value of
grigory [225]

Answer:

the value of the quick ratio is 1.11 times

Explanation:

The computation of the value of the quick ratio is shown below:

Quick Ratio = Total Quick Assets ÷ Total current liabilities

= [Cash + Accounts Receivables] ÷ Accounts Payable

= [$145 + $99] ÷ $219

= $244 ÷ $219

= 1.11 Times

Hence, the value of the quick ratio is 1.11 times

4 0
2 years ago
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