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galben [10]
3 years ago
14

Hot Wings, Inc., has an odd dividend policy. The company has just paid a dividend of $8.50 per share and has announced that it w

ill increase the dividend by $6.50 per share for each of the next four years, and then never pay another dividend. Required: If you require a return of 16 percent on the company’s stock, how much will you pay for a share today
Business
1 answer:
Vadim26 [7]3 years ago
3 0

Answer:

The correct answer is $65.90 (approx.)

Explanation:

According to the scenario, computation of the given data are as follows:

Dividend paid = $8.50

Increase dividend = $6.50 per year

Require return = 16%

We can calculate the current share price by using following method:

=[($8.5 + $6.5) ÷ (1 + 16%)^1] + [($8.5 + $6.5 + $6.5) ÷ ( 1 + 16%)^2] +[($8.5 + $6.5 + $6.5 + $6.5) ÷ (1+16%)^3] + [($8.5 + $6.5+ $6.5 + $6.5 + $6.5) ÷ (1+16%)^4

= $15 ÷ 1.16 + $21.5 ÷ 1.16^2 + 28 ÷ 1.16^3 + 34.5 ÷ 1.16^4

= $65.90 (approx.)

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Rudik [331]

Answer:

On November 1, the listing was terminated

Explanation:

According to the given n situation, the listing was terminated on November 1 because due to fire, it causes considerable damage to the property. As the property is damaged, so automatically the listing was canceled and terminated.  

The date of rescinds the listing, the expiration date, and, the date at which the broker is incompetence is not relevant.  

3 0
3 years ago
Why is it necessary for us to have knowledge and professional education? show the relationship between education and professiona
Dominik [7]

Answer:

In terms of knowledge, it is more important because you have to be knowledgeable to handle situation. Whereas, professional education help you in think big and broad not shallow, in order to be an hero to over situations in life. THE relationship between them is to be professional and your have to be knowledgeable.

5 0
3 years ago
Houghton Limited is trying to determine the value of its ending inventory as of February 28, 2017, the company's year-end. The f
Bingel [31]

<u>Solution and Explanation:</u>

a) No, it should not be included as the goods were shipped on 26th March and the terms were FOB shipping, it does not matter that customer receives it on 2 March .

b) Yes, as the title of goods passes to houghton on 26th March as the terms were FOB shipping hence (450+30) $480 should be included.

c) Yes, $720 should be included in ending inventory as the goods will be shipped on 10th march .

d) No, as the goods were on consignment .

e) No, as the terms are FOB destination hence totle of goods passes to Houghton on March 2 hence shouls not be included.

f) Yes, as terms include FOB destination so titke passes to customer on March 2 hence is included at cost of $240.

8 0
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G tax cuts
sammy [17]

i believe the answer is B

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In texas, the second 30 days of the legislative session are mainly reserved for
givi [52]

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