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3 years ago

7

A share of common stock just paid a dividend of $1.00. if the expected long-run growth rate for this stock is 5.4%, and if inves

tors' required rate of return is 11.4%, what is the stock price? 1. $16.28 2. $16.70 3. $17.13 4. $17.57 5. $18.01

1 answer:

solong [7]3 years ago

7 0

It's 16.282. ok I don't think for sure though

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Merone Company allocates materials handling cost to the company's two products using the below data:Modular Homes Prefab Barns T

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Answer:

$167,098

Explanation:

The computation of the total materials handling cost allocated to the modular homes is shown below:

= Total material handling cost × expected modular homes ÷ total expected material moves

= $210,420 × 540 ÷ (540 + 140)

= $167,098

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2 years ago

Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, p

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Answer:

Sonic Inc.

a) Sales Budget:

Rumble Thunder

Total units sold 8,550 7,450

Unit sales price $135 $210

Sales value $1,154,250 $1,564,500

b) Production Budget:

Rumble Thunder

Total units sold 8,550 7,450

Desired inventory (units), June 30 299 56

Estimated inventory (units), June 1 260 64

Units to be produced 8,589 7,442

Explanation:

a) Data and Calculations:

Rumble Thunder

Total units sold 8,550 7,450

Desired inventory (units), June 30 299 56

Estimated inventory (units), June 1 260 64

Units Produced 8,589 7,442

Rumble Thunder

Expected sales volume (units):

Midwest Region 3,650 3,200

South Region 4,900 4,250

Total units sold 8,550 7,450

Unit sales price $135 $210

a) The Sonic Inc.'s sales budget determines the production budget. When the quantity to be sold is obtained, then production planning can take place based on meeting customers' demand for goods or services.

b) The Production budget is a bye-product of the sales budget, though, it is critical in the whole value chain. It is the production budget that guides production planning, including the type, design, and other features of the product.

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3 years ago

Shackleford corporation net income this year is $800,000. The company generally retains 35% of net income for reinvestment. the

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Answer:

A. $22.61

Explanation:

First,

find the growth rate(g);

g = ROE *retention rate

retention rate = 35%

ROE = Net income/value of equity

ROE = 800,000/5,000,000 = 0.16

Therefore, g = 0.16*0.35

g =0.056 or 5.6%

Price = $\frac{D0(1+g)}{(r-g)}$

D0 = Recently paid dividend

g = growth rate

r = required return

Price = $\frac{1.37(1.056)}{0.12-0.056} \\ \\ =\frac{1.44672}{0.064} \\ \\ =22.605$

Therefore, the value of this stock is $22.61

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2 years ago

National Advertising just paid a dividend of D0 = $0.75 per share, and that dividend is expected to grow at a constant rate of 6

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Answer:

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Explanation:

National advertising made dividend payment of $0.75 per share

The dividend is expected to grow at a constant rate of 6.50%

= 6.50/100

= 0.065

The company beta is 1.85

The required return on the market is 10.50%

The risk free rate is 4.50%

The first step is to calculate the rate of return using the CAMP model

R = Risk free rate+beta(market return-risk free rate)

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Required rate of return= 15.6

Therefore the current stock price can be calculated as follows

Po= Do(1+g)/(r-g)

Where Do= 0.75, g= 0.065, r= 15.6

Po= 0.75(1+0.065)/(0.156-0.065)

Po= 0.75(1.065)/0.091

Po= 0.7987/0.091

Po= $8.78

Hence the company current stock price is $8.78

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3 years ago

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Answer:

Developing countries are using less oil because of substantial investments in renewable energy.

Explanation:

Solution

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Which of the following, if true, would weaken James' argument?

A. A private oil drilling firm has recently discovered vast oil deposits off the coast of a remote island country.

B. Developing countries are using less oil because of substantial investments in renewable energy.

C. Per capital consumption of oil was higher in the developed countries than in the developing countries during the last year.

D. An increase in oil prices tends to accelerate inflation in growing economies.

E. Following a large oil spill, some countries have introduced new regulations for offshore oil drilling.

4 0

3 years ago