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photoshop1234 [79]
3 years ago
15

Whited Inc.'s stock currently sells for $35.25 per share. The dividend is projected to increase at a constant rate of 5.25% per

year. The required rate of return on the stock, rs, is 11.50%. What is the stock's expected price 5 years from now
Business
1 answer:
kari74 [83]3 years ago
6 0

Answer:

$45.47

Explanation:

Data provided as per the given question below:-

Stock's Current Price = $35.25

Growth rate = 5.25%

Years = 5

The computation of stock's expected price is shown below:-

Stock's expected price = Stock's Current Price × (1 + growth rate)^5

= $35.25 × (1 + 5.25%)^5

= $35.25 × (1.0525)^5

= $35.25 × 1.29

= $45.47

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I wanna know about debit and credit full explanation ​
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Answer:

Explanation:

A debit is an entry made in an account. It either increases an asset or expense account or decreases equity, liability, or revenue accounts.

A credit is an entry  alsom made in an account. It either increases equity, liability, or revenue accounts or decreases an asset or expense account.

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3 years ago
Read 2 more answers
The Allied Corporation analyzes a project that requires an immediate investment of $440. Allied estimates that at the end of the
olga_2 [115]

Answer:

NPV = $100.4002 rounded off to $100.40

Explanation:

The NPV or net present value is the present value of a project or business's cash flows which are calculated by deducting the cash outflows from the cash inflows. NPV is a tool or criteria used for investment and project appraisal. The NPV can be calculated as follows,

NPV = CF1 / (1+r)  +  CF2 / (1+r)^2  +  ....  +  CFn / (1+r)^n   -   Initial Outlay

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  • CF1, CF2, ... represents the cash flows in Year 1, Year 2 and so on.
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NPV = 660 / (1+0.075)  +  [ -85 / (1+0.075)^2]  -  440

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8 0
2 years ago
Fancy Furniture produced a batch of 2,000 coffee tables at a cost of $355,000. It was discovered that the entire batch was finis
Law Incorporation [45]

Answer:

b) The $355,000 manufacturing cost of the tables already incurred.

Explanation:

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Tables, or sell them as they now are

All other points contribute either directly or indirectly to the decision that the company is about to take in this regard.

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7 0
3 years ago
Which one of the following is least apt to help convince managers to work in the best interest of the stockholders? Threat of a
vovikov84 [41]

Answer:

Salary raises based on length of service  

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Agency conflict occur when the owners of a firm do not manage the company. Instead, the firm is managed by mangers. As a result, the interest of the manger might not be aligned with that of the owners and as a result the manager would not act in the best interest of the owners.

Agency problem is more common in public companies

If management compensation tied to the market value of the firm's stock, it would incentivise managers to take steps that would ensure that the value of the company's stock increases. This is because they would also benefit if the value of the stock increases

A stock option plan gives managers the option of buying a company's stock if certain targets are met. This would motivate an employee to work in the best interest of the shareholders

A proxy fight and a takeover would make the managers to lose their jobs. Most managers would not want to lose their jobs. A threat of a takeover or a proxy fight can serve to motivate mangers to act in the best interest of the stockholders

7 0
3 years ago
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