Answer:
In order to find the intrinsic value of a stock using the dividend discount method we need to know its growth rate, its last dividend and its required return. When we know these 3 things we can use them in the formula which is
Intrinsic Value = Dividend*(1+Growth Rate)/(Required return - Growth rate)
In this case we know all three of these values which are
D= 3
G= 3%
R= 17%
We will put these values in the formula in order to find the intrinsic value of the stock
3*(1+0.03)/(0.17-0.03)=22.07
The intrinsic value of the stock is $22.07
Explanation:
Answer:
Direct labor rate variance= $482 favorable
Explanation:
Giving the following information:
Variable overhead 0.5 hours $ 7.30 per hour
Actual direct labor hours= 2,410
The actual variable overhead rate was $7.10 per hour.
<u>To calculate the variable overhead rate variance, we need to use the following formula:</u>
Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity
Variable manufacturing overhead rate variance= (7.3 - 7.1)*2,410
Variable manufacturing overhead rate variance= $482 favorable
Answer:
A. $80,000
Explanation:
The computation of the gates investment is shown below:
= Net income × total percentage
where,
Net income = $200,000
And, the total percentage = Acquiring percentage + additional percentage
= 15% + 25%
= 40%
Now put these values to the above formula
So, the value would equal to
= $200,000 × 40%
= $80,000
The dividend part should not impact the investment. So, we do not consider it