Keeping your ___ and ___in mind will dictate what you say and how you say it.

Storico Co. just paid a dividend of $3.15 per share. The company will increase its dividend by 20 percent next year and then red

ololo11 [35]

Answer:

The price of the stock today or the price at which the stock should sell today is $61.30

Explanation:

The price of the stock today can be calculated using the Dividend Discount Model approach which values a stock based on the present value of the expected future dividends from the stock. The price of this stock will be,

P0 = 3.15 * (1+0.2) / (1+0.12) + 3.15 * (1+0.2) * (1+0.15) / (1+0.12)^2 +

3.15 * (1+0.2) * (1+0.15) * (1+0.1) / (1+0.12)^3 +

[(3.15 * (1+0.2) * (1+0.15) * (1+0.1) * (1+0.05) / (0.12 - 0.05)) / (1+0.12)^3]

P0 = $61.296 rounded off to $61.30

5 0

3 years ago

Marigold Corp. purchased a truck at the beginning of 2020 for $109700. The truck is estimated to have a salvage value of $4200 a

jeka57 [31]

Answer:

the depreciation expense of the year 2020 is $18,870

Explanation:

The computation of the depreciation expense of the year 2020 is as follows:

= (Truck value - salvage value) ÷ (useful life) × (driven miles)

= ($109,700 - $4,200) ÷ (123,000 miles) × (22,000 miles)

= $18,870

Hence, the depreciation expense of the year 2020 is $18,870

6 0

3 years ago

Helmuth Inc's latest net income was $1,250,000, and it had 225,000 shares outstanding. The company wants to pay out 45% of its i

QveST [7]

Answer:

b. $2.50

Explanation:

Dividend paid = 45%*12,50,000

= $562500

dividend per share = 562500/225000

= $2.50

Therefore, The dividend per share should it declare is $2.50

4 0

3 years ago

Seth and Rachel have original investments of $50,000 and $100,000, respectively, in a partnership. The articles of partnership i

dimulka [17.4K]

Answer:

D. $8,000.

Explanation:

*Net loss is considered as the amount to be allocated between partners on equal sharing ratio. Otherwise the net allocated amount will be 76,000 ( -16000-5000-10000-27000-18000) net loss and Seth's share will be -38,000 (76000/2) . Question has no option of this amount.

Statement of Partners Equity

For the Year end MM-DD-YY

Seth Rachel

$ $

Beginning Capital balance = 0 0

Investment by partners = 50,000 100,000

interest Allowance = 5000 10,000

Salary Allowance = 27000 18,000

Net loss Allocated = (8,000) (8,000)

Ending capital balance = 74,000 120,000

8 0

3 years ago

Interpret the following statement: "An increase in the price of wheat will encourage farmers to

Maksim231197 [3]

Answer:

A. The statement is correct.

Explanation:

According to the law of supply, there is a positive or direct relationship between the price of wheat and the quantity of wheat supplied i.e if the price of wheat is increases then the quantity of wheat supplies is also increases and if the price of wheat decreases then the quantity of wheat supplies is also decreases that represents the direct relationship between the price and the quantity supplied

Hence, the first option is correct

6 0

3 years ago