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vovikov84 [41]
3 years ago
13

The last dividend (D0) is $1.80, the growth rate (g) is 6%, and the required rate of return (r) is 12%. What is the stock price

according to the constant growth dividend model
Business
1 answer:
jekas [21]3 years ago
7 0

Answer:

Price = $31.8  

Explanation:

The formula for constant growth dividend model is:

  Price =  <u>D1</u>

               r-g

Or

  Price = <u>D0 (1+g)</u>

                   r-g

where,

D0 = Last Dividend Paid

r = required rate of return

g = growth rate

Substitute the values now in the formula according:

   Price =   <u>1.80 (1+0.06)</u>

                     0.12-0.06

   Price =  <u>1.908</u>

                  0.06

   Price = $31.8

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When the store hires two workers, they are able to serve 16 customers per hour. When the store hires three workers they are able
kotegsom [21]

Answer: $24

Explanation:

Given that,

Two workers serve = 16 customers per hour

Three workers serve = 22 customers per hour

Each customer spends an average of $4 in the store.

Total revenue from Two workers = 16 × $4

                                                       = $64

Total revenue from Three workers = 22 × $4

                                                          = $88

Therefore, the marginal benefit of hiring the third worker would be:

=  Total revenue from Three workers - Total revenue from Two workers

= $88 - $64

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7 0
4 years ago
Data related to the inventories of Costco Medical Supply are presented below: Surgical Surgical Rehab Rehab Equipment Supplies E
NemiM [27]

Answer:

$85

Explanation:

Costco Medical Supply's inventory:

                   Surgical Eq - Surgical Supp - Rehab Eq - Rehab Supp

Selling price     $260                  $100           $340               $165

Cost                  $170                     $90           $250              $162

Costs to sell     $30                      $15              $25                 $10

If we apply the net realizable value rule, the value of surgical supplies would be:

NRV = $100 = $15 = $85

the NRV is also the lower of cost since $85 < $90

6 0
3 years ago
In the joint planning process, ____________ saves times by allowing planning activities to begin in advance of a formal decision
Novosadov [1.4K]

In the joint planning process, A Planning Order (PLANORD) <span>is a planning directive providing essential planning guidance and directs the initiation of plan development before the directing authority approves a military COA. It saves times by allowing planning activities to begin in advance of a formal decision.</span>

 

 

 






6 0
3 years ago
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Answer:

Cash account reconciliation

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- Bank charges: ($40)

+ Error in recording check: $360

Reconciled cash account: $27,380

Bank account reconciliation:

Balance: $28,460

+ Deposit in transit: $4,410

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5 0
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Which of the following statements is CORRECT? Assume a company's target capital structure is 50% debt and 50% common equity.a. T
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The correct statement among the given is 'cost of equity is always equal to or greater than the cost of debt' .

Option-c

<u>Explanation: </u>

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This is why debt costs are higher. Such high risk will lead to higher equity costs than debt costs. To investors, equity costs would be returned on equity investment, and debt costs would be made as part of debt investment.

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