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DanielleElmas [232]
3 years ago
5

The Impulse Shopper recently paid an annual dividend of $1.13 per share. The company just announced that it is suspending all di

vidend payments on its common stock for the next five years. After that, the company expects to pay $.50 a share at the end of each year. At a required return of 18 percent, what is this stock worth today?
Business
1 answer:
vivado [14]3 years ago
5 0

Answer:

Stock value today = $1.21

Explanation:

Current Dividend = D{_0} = $1.13

After 5 years that is D{_6} = $0.50

Since expected growth = 0

Therefore

P{_5} = D{_6} / Ke = 0.5/18% = $2.77

Its present value will be \frac{1}{(1 + 0.18){^5}} X 2.77 = $1.21

Stock value today = $1.21

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What are some advantages of students being exposed to computer software? (as it relates to Accounting)
ivann1987 [24]

Answer:

There are many advantages in students being exposed to accounting softwares.

-There productivity increases as they can engage in more work in less time

-The accuracy of the accounting process increases as well, mainly lyrics because there is no room for human errors

-the process becomes easier and less time consuming, this makes accounting less complicated and more attractive as a subject for the students

Explanation:

5 0
3 years ago
Read 2 more answers
E25-18 Making outsourcing decisions Cool Systems manufactures an optical switch that it uses in its final product. The switch ha
Vikentia [17]

Answer:

From a cost savings perspective the switch should be made in-house

Explanation:

In deciding whether Cool Systems should make or buy the switch , we calculate the relevant applicable to  both situations,then compare t see which option saves costs.

The cost of making the switch is calculated thus:

Direct materials per unit      $5

Direct labor                           $3

Variable overhead                <u>$6</u>

Total relevant cost               <u> $14</u>    

The cost of purchasing the switch from another supplier is $15

From the above analysis, it is preferable to make the switch in-house as that option saves $1($15-$14) per switch.

However, it might be that we need to look beyond cost savings sometimes,purchasing the switch from another supplier might be viable if the quality of the outside switch is better or that the outside supplier can deliver in timely fashion.      

7 0
3 years ago
Calculate the present value of the after tax net returns to land in the 7th year if thereal pre-tax net returns to land today ar
Tatiana [17]

Answer:

PV(after-tax net return in 7th year) = 70.55 (Approx)

Explanation:

Given:

Number of year = 7

Pre-tax net returns (Fn) = $100

Growth rate = 4% = 0.04

Inflation = 3% = 0.03

Marginal tax rate = 30% = 0.3

Discount rate = 10% = 0.1

Computation:

Fn = Fo(1+g)ⁿ = 100(1.04)⁷

Fn = 131.6

Nominal net returns = 131.6(1.03)⁷

Nominal net returns = 161.85

After tax return = 161.85  (1 - 0.3)

After tax return = 113.30

After-tax, risk adjusted discount rate = 0.1(1-0.3) = 7%

PV(after-tax net return in 7th year) = 113.30 (1+0.07)⁻⁷

PV(after-tax net return in 7th year) = 70.55 (Approx)

8 0
3 years ago
As Lily files her taxes, she learns that her federal total tax due ends up being $206. According to her Federal income tax withh
adoni [48]

The tax refund that Lily can expect to get back from the tax authorities will be $15.80.

<h3>What is a tax?</h3>

A tax simply means the compulsory levy that's paid by the people and companies to the government.

In this case, the tax refund that Lily can expect back will be:

= 7.65% × $206

= $15.80

In conclusion, the correct option is $15.80.

Learn more about tax on:

brainly.com/question/25783927

8 0
2 years ago
A market is described by the following supply-and-demand curves:QS = 2PQD = 300−PSuppose the government imposes a price ceiling
Zarrin [17]

Answer:

Binding

$100

200

200

Shortage

Explanation:

A price ceiling is when the government or an agency of the government sets the maximum price for a good.

A price ceiling is binding when the price ceiling is below the equilibrium price.

To find the equilibrium price, equate qs to qd because at equilibrium, quantity supplied is equal to quantity demanded.

2P = 300 - P

3P = 300

P = 100

Equilibrium price is $100.

$100 > $90. Therefore, price ceiling is binding.

To find quantity supplied, plug in the value of P into the equation for quantity supplied

QS = 2(100) = 200

To find quantity demanded, plug in the value of P into the equation for quantity demanded

QD = 300 - 100 = 200

when price is below equilibrium price, quantity demanded increases while the quantity supplied decreases. This leads to a shortage.

I hope my answer helps you

3 0
3 years ago
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