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VARVARA [1.3K]
3 years ago
15

The Stagnant Growth Corporation has paid a constant dividend of $2.50 per year for the past 3 years and is expected to continue

paying the same dividend per share for the foreseeable future. If the required rate of return on its common stock is 12%, the most an investor should pay per share is _____. (Round to two decimal places.)
Business
1 answer:
AleksAgata [21]3 years ago
6 0

Answer:

20.83%

Explanation:

Data provided

Dividend = $2.50

Required rate of return = 12%

The computation of the current price of the stock is shown below:-

The current price of stock = Dividend ÷ Required rate of return

= $2.50 ÷ 12%

= 20.83%

So, for computing the current price of the stock we simply divide the dividend by required rate

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- Why do so many people still sign up for overdraft protection when it is not always ?
KengaRu [80]

Answer:

This protection usually covers checks, ATM transactions, and debit card transactions. Overdraft protection may make more financial sense, will result in the recipient not knowing your low bank balance, and ensures emergency transactions process.

Explanation:

8 0
1 year ago
A company uses the periodic inventory method. If beginning inventory is understated by $10,000 because the prior’s year’s ending
Ratling [72]

Answer: Understated and Overstated

Explanation:

Cost of good sold is the addition of Opening stock to the purchases and subtracting closing stock, the omission of $10,000 will reduce it. Invariably a reduction in cost of sales will overstate income.

3 0
3 years ago
A fire destroyed some of Cholla, Inc.’s records. Information from the documents found related to inventory is listed below. Endi
sineoko [7]

Answer:

$860,400

Explanation:

Cholla, Inc.’s

Cost of goods sold = Beginning inventory + Purchases − Ending inventory

Purchases = Cost of Goods Sold − Beginning Inventory + Ending Inventory

Cost of Goods Sold $801,000

Less Beginning Inventory ($77,400 )

$723,600

Add Ending Inventory $ 136,800

Amount of inventory purchased $860,400

Therefore the amount of inventory that was purchased during the year was $860,400.

Mean while the consignment inventory is not owned by the company and is not as well considered in the Cost of Goods Sold equation.

3 0
3 years ago
________ is the process of studying large amounts of data of a variety of types to uncover hidden patterns, unknown correlations
max2010maxim [7]

Answer:

Big data analytics

Explanation:

Big data analytics is the process of analysing large data sets (big data) to get insights such as hidden patterns, correlations, and market trends. This information is used to make business decisions.

Big data analytics bus used to study structured data sets, unstructured data sets, and semi-structured data sets.

This form of data processing bis used accros different industries including banking, insurance, health-care, communication, education, and manufacturing.

8 0
3 years ago
High Mountain Lumber (HML) has normal budgeted overhead costs of $115,150 and a normal capacity of 35,000 direct labor hours for
Furkat [3]

Answer:

                                                                                                 $

Standard total overhead cost (0.5 hr x 25,000 x $3.29) 41,125

Less: Actual total overhead cost ($21,000 + $18,000)    39,000

Total overhead variance                                                      2,125(F)

                                           

Standard overhead application rate

= <u>Budgeted overhead</u>

  Budgeted direct labour hours

= <u>$115,150</u>

   35,000 hours

= $3.29 per direct labour hour

Explanation:

Total overhead variance is the difference between standard total overhead cost and actual total overhead cost. Standard total overhead cost is the product of standard hours per unit, standard overhead application rate and actual output produced. Actual total overhead cost is the aggregate of actual variable overhead cost and actual fixed overhead cost. Standard overhead application rate is the ratio of budgeted overhead to budgeted direct labour hours (normal capacity).

6 0
3 years ago
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