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Mrac [35]
3 years ago
6

The Lory Company had net earnings of $127,000 this past year. Dividends of $38,100 were paid. The company's equity was $1,587,50

0. If Lory has 100,000 shares outstanding with a current market price of $11.625 per share, and a dividend growth rate is 5.6%, what is the firm’s discount rate?
Business
1 answer:
dexar [7]3 years ago
3 0

Answer:

<em>Rate = 9.05%</em>

Explanation:

<em>To calculate the Dividend per share we'll have to </em>

= Total Dividends Paid / Total Shares

= 38,100/100,000

<em>= 0.38  Dividend per share</em>

<em />

So, if we are to be using the <em>constant Growth Model, </em>

P=  \frac{D_{1}}{r-g}

P = Price of Stock

D_{1} = Estimated Dividends for next period

r = Required rate of return

g = Growth Rate

11.625 = 0.38(1.056)/(r - 0.056)

<em>r = 9.05%</em>

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E none of the above

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Green Valley Exporters USA has $100,000 of before tax foreign income. The host country has a corporate income tax rate of 25% an
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Answer:

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7 0
2 years ago
With an unrelated diversification strategy, the types of companies that make particularly attractive acquisition targets are:A.
kramer

Answer:

<em>.C. cash cow businesses with an excellent financial fit</em>

Explanation:

With an unrelated diversification strategy, the types of companies that make particularly attractive acquisition targets are:A. struggling companies with good turnaround potential, undervalued companies that can be acquired at a bargain price, and companies that have bright growth prospects but are short on investment capital.B. companies offering the biggest potential to reduce labor costs.C. cash cow businesses with an excellent financial fit.D. companies that are market leaders in their respective industries.E. companies that are employing the same basic type of competitive strategy as the parent corporation’s existing businesses.

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Question 1 Tamarisk Corporation issued 1,800 shares of $10 par value common stock upon conversion of 900 shares of $50 par value
Anastasy [175]

Answer:

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Dr Preferred stock                                                 $45,000

Dr Paid-in capital in excess of par                        $9,900

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Find in the attached the detailed computations of the amounts above.

Download xlsx
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The departmental patriarch spent his last years at the university developing and promoting a Student Portfolio Project that requ
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Answer:

D, starvation

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In the above question, as soon as the patriach died, the Student portfolio project started to starve. It lacked continuos push and effort like the patriach did.

Cheers.

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