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3 years ago

Goodwin Technologies has been wildly successful but has yet to pay a dividend.

Business

1 answer:

nydimaria [60]3 years ago

5 0

Answer and Explanation:

The computation is shown below:

Year Cash flow PVF at 12% PV at 12%

D0 0 0 1 0

D1 0 0 0.89286 0

D2 0 0 0.79719 0

D3 2.25 2.25 0.71178 1.601505 (A)

D4 2.25 × 1.117^1 = 2.51325 0.63552 1.597221 (B)

D5 2.25 × 1.117^2 = 2.80730 0.56743 1.592946 (C)

Now

Horizon Value at D5 is

= Next Year Dividend ÷ (Required Rate -Growth rate)

= (2.25 × 1.117^2 × 1.036) ÷ (0.12 - 0.036)

34.6234 34.6234 0.56743 19.64634 (D)

Current Value 24.43801 (A + B + C + D)

Horizon Value = 34.62

Intrinsic Value = 24.43

Now

Current expected dividend yield is

= Dividend ÷ Market Price

= 0 ÷ 24 ÷ 43

= 0 %

And, the minimum expected capital yield should be equivalent to the required rate of return i.e 12%

The company should not paying the dividend because it involves various reasons lime expansion plans, seasonal & cyclical sales, buy back shares

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A local bagel shop produces two products: bagels (B) and croissants (C). Each bagel requires 6 ounces of flour, 1 gram of yeast,

irakobra [83]

Answer:

Consider the following calculations

Explanation:

Let X be Bagels and Y be croissants

Profit:

20X+30Y

Subject:

6X+3Y<=6600

1X+1Y<=1400

2X+4Y<=4800

Critical points are

(0,1400) , (800,600) , (1100,0)

Max at 0,1400 and P =4200

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4 years ago

The process of packaging and marketing crime information for popular consumption and commercial profit is called?

galina1969 [7]

Answer:

Commodification is the process of packaging and marketing crime information for popular consumption and commercial profit.

Explanation:

Commodification is the conversion of anything like goods, services, ideas, nature, private information, people, or animals into tradeable goods or commodities in a capitalist economic system. According to Arjun Appadurai, the most fundamental definition of a commodity is "something designed for exchange" or "anything of economic value."

To know more about 'Commodification' , visit: brainly.com/question/13235742

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6 0

1 year ago

Tristan transfers property with a tax basis of $900 and a fair market value of $1,200 to a corporation in exchange for stock wit

nataly862011 [7]

Answer:

Option B is correct.

Corporation tax basis in the property received= $1,100

Explanation:

Option B is correct.

Corporation tax basis in the property received is calculated by adding the tristan transfers property with a tax basis of $900 and $200 which is the profit/gain tristan got.

Corporation tax basis in the property received=tristan transfers property with a tax basis + Gain Received

Corporation tax basis in the property received= $900 + $200

Corporation tax basis in the property received= $1,100

8 0

3 years ago

Sunland Company entered into these transactions during May 2022, its first month of operations. 1. Stockholders invested $38,000

likoan [24]

Question Completion:

Show the effect of each transaction on the accounting equation.

Answer:

Sunland Company

1. Stockholders' investment in the business = $38,000

Assets (Cash + $38,000) = Liabilities + Equity (Common Stock + $38,000)

2. Office Computers purchased on account from Ladd = $34,000

Assets (Equipment + $34,000) = Liabilities (Accounts Payable + $34,000) + Equity

3. Cash payment for May Rent = $2,200

Assets (Cash -$2,200) = Liabilities + Equity (Retained Earnings - $2,200)

4. Computer services performed on account = $19,500

Assets (Accounts Receivable + $19,500) = Liabilities + Equity (Retained Earnings + $19,500)

5. Computer services performed for cash = $6,400

Assets (Cash + $6,400) = Liabilities + Equity (Retained Earnings + $6,400)

6. Utilities for May paid $8,200

Assets (Cash - $8,200) = Liabilities + Equity (Retained Earnings - $8,200)

7. Payment to Ladd = $34,000

Assets (Cash - $34,000) = Liabilities (Accounts Payable - $34,000) + Equity

8. Advertising expense on account = $3,300

Assets (Cash - $3,300) = Liabilities + Equity (Retained Earnings - $3,300)

9. Cash received from customers = $12,700

Assets (Cash + $12,700, Accounts Receivable -$12,700) = Liabilities + Equity

Explanation:

a) Data and Calculations:

Transactions entered into during May 2022:

1. Stockholders' investment in the business = $38,000

2. Office Computers purchased on account from Ladd = $34,000

3. Cash payment for May Rent = $2,200

4. Computer services performed on account = $19,500

5. Computer services performed for cash = $6,400

6. Utilities for May paid $8,200

7. Payment to Ladd = $34,000

8. Advertising expense on account = $3,300

9. Cash received from customers = $12,700

b) The accounting equation is the basis of the double-entry system of accounting practice. It states that at every point in time and with every transaction, the assets are equal to the liabilities plus owners' equity. This implies that the assets are owed by creditors and stockholders. Therefore, every business transaction by Sunland Company has a double-entry effect on the assets, liabilities, and owners' equity.

8 0

3 years ago

A stock paying $5 in annual dividends currently sells for $80 and has an expected return of 14%. What might investors expect to

Drupady [299]

Answer:

$86.20

Explanation:

Total return from stock = Current price * expected return

Total return from stock = 80*14%

Total return from stock = $11.20

Dividend already realized = $5

Capital gain = $11.20 - $5

Capital gain = $6.20

End of one year price = Beginning price + capital gain

End of one year price = $80 + $6.20

End of one year price = $86.20

Therefore, at the end of one year price is $86.20

5 0

3 years ago