All categories

3 years ago

The stock price of Webber Co. is $68. Investors require an 11 percent rate of return on similar stocks.

1 answer:

7 0

To get the growth rate, we will follow the Gordon Growth modelP= D/(K-G)whereP= stock value=$68D= Expected dividend=$3.85G= Growth rateK= required rate of returnG =K-(D/P)Substitute the given valuesG= 0.11-(3.85/68)
G= 5.34%The growth rate for stock required is 5.34%

You might be interested in

Pacifica Industrial Products Corporation makes two products, Product H and Product L. Product H is expected to sell 39,000 units

Gemiola [76]

Answer:

Each product will be allocated with 38.30 dollars of manufacturing overhead as both takes 0.81 DLH

Explanation:

$\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate$

To calcualte the overhead rate we need to distribute the expected cost over the expected cost driver, in this case, labor hours:

(39,000 + 8,000) x 0.81 DLH = 38,070 labor hous

$1,800,000 overhead / 38,070 DLH = 47,281323877

the overhead per hour is $47.28

overhead per product:

47,281323877 x 0.81 = 38,29787234 = 38.30

4 0

3 years ago

Suppose labor productivity differences are the only determinants of comparative advantage, and Brazil and Chile both produce onl

o-na [289]

Answer:

The correct answer is letter "A": Brazil only.

Explanation:

Comparative advantage is the ability of an organization or individual to produce at lower opportunity costs. This is achieved by introducing efficient productivity strategies or achieving economies of scale.

For the case given, the comparative advantage of Brazil and Chile is based on labor productivity only. Then:

The comparative advantage of Chile on sugar = $\frac{2 units of sugar}{5 units of coffee}$ = 0.4
The comparative advantage of Brazil on sugar = $\frac{1 unit of sugar}{2 units of coffee}$ = 0.5

Thus, Brazil has a comparative advantage over Chile on sugar.

4 0

3 years ago

____ an business that is able to raise capital by selling shares on the stock market

Elina [12.6K]

Answer:

public limited company

Explanation:

shares of public limited companies can be freely brought and sold on the sock market .

4 0

3 years ago

True true or false increasing RAM, a computer's CPU can process more quickly

Airida [17]

This would be a true statement

5 0

3 years ago

Thomson Co. had $150,000 and $310,000 in cash on the balance sheet at the end of 2XX0 and 2XX1, respectively. Its cash flow from

bagirrra123 [75]

Answer:

$4,790,000

Explanation:

We know,

Opening cash flow + Net cash generated during the period = Closing cash

Opening cash = $150,000

Closing = $310,000

Net cash generated = $310,000 - $150,000 = $160,000

Cash inflow from operating activities = $2.5 million

Cash flow from investing activities = $2 million

Cash from issue of debt = $500,000

Dividends paid = ($50,000)

Net cash generated = $4,950,000

Cash generated - Cash used for repurchase of common stock = $160,000

$4,950,000 - cash used = $160,000

Cash used in repurchase of common stock = $4,790,000

5 0

3 years ago