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Oksanka [162]
3 years ago
15

SCI just paid a dividend (D₀) of $1.92 per share, and its annual dividend is expected to grow at a constant rate (g) of 4.00% pe

r year. If the required return (rs ) on SCI’s stock is 10.00%, then the intrinsic value of SCI’s shares is ____ per share.
Business
1 answer:
Readme [11.4K]3 years ago
3 0

Answer:

intrinsic value of SCI’s shares is $33.28 per share

Explanation:

given data

dividend (D₀) = $1.92 per share

constant rate (g) = 4.00% per year

required return (rs ) = 10.00%

to find out

intrinsic value of SCI’s shares

solution

we know that intrinsic value is here express as

intrinsic value = current dividend × ( 1+ growth rate ) ÷ ( required rate - growth rate )    .............................1

put here value we get

intrinsic value = \frac{1.92*(1+0.04)}{0.10-0.04}

intrinsic value = 33.28

so intrinsic value of SCI’s shares is $33.28 per share

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The economists think about the pros and cons of the relation between the private ownership and the property maintenance. The property maintenance level depends on the level of the property owner responsibility which can affect the value of the property itself. There is a benefit to the private ownership if the private owner is a responsible one. A loss will occur if the private owner is not responsible.
8 0
4 years ago
When Mia and Shane are planning their honeymoon, their travel agent tells them that if they buy a special package, their trip to
Leno4ka [110]

Answer: bundle Pricing

Explanation:

Bundle Pricing is a strategy that is used by companies whereby several products are all packages together for a lower price.

Here, we are informed that the special package for their trip to Paris will include meals, tickets to the theater, and a rental car in addition to airfare and a hotel. This is an example of bundle Pricing as the company can sell different products together at once.

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3 years ago
Which terms will make the following statement true? When manufacturing overhead is overapplied, the Manufacturing Overhead accou
kupik [55]

Answer:

Answer is a) debit, actual

Manufacturing Overhead account has a debit balance and applied manufacturing overhead is greater than the actual manufacturing overhead

Explanation:

Overheads are applied to product costs using budgeted overhead rates. Budgeted rates are used because the delays in obtaining actual overhead affects timeous product valuation for profit purposes

Over applied situation occurs when the applied overheads exceeds the actual manufacturing overhead.

<em>The Manufacturing Overhead Account will have the following entries:</em>

Transfer to work in Progress figure - credit (with applied overheads)

Bank - debit (actual overhead)

Balancing figure or shortfall - debit (over-applied)

8 0
3 years ago
Suppose you own a bicycle but haven't found the time to ride it much lately. These days, it is only worth $45 to you. One of you
ch4aika [34]

Answer: The total value created from the trade is $58

Explanation: The value created by me is $25 as I sold for $70 a bicycle worth $45 to me. That is $70 - $45 = $25.

On the otherhand, my friend created a value/gain of $33. He bought the bicycle for $70 but the worth to him is $103. That is, $103 - $70 = $33

In essence, the total value created will be the summation of the value created by me and that of my friend

That is, $25 + $33 = $58

3 0
3 years ago
Suppose that you take $150 in currency out of your pocket and deposit it in your checking account. If the required reserve ratio
PilotLPTM [1.2K]

Answer:

The largest amount by which the money supply can increase is $1,875

Explanation:

According to the given data, we have the following:

Checking/Demand Deposit = $150 (which is assumed to be the part of new money supply)

Required reserve ratio = 8% = 0.08

Therefore, first we need to calculate the money supplier as follows:

Money multiplier 1/rr

Money multiplier = 1/0.08

Money multiplier = 12.5

Hence for $150 deposited the money supply will increase by $(150×12.5) =$1,875

The largest amount by which the money supply can increase is $1,875

7 0
4 years ago
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