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Dahasolnce [82]
3 years ago
9

Assume Evco, Inc., has a current price of $50 and will pay a $2 dividend in one year, and its equity cost of capital is 15%. Wha

t price must you expect it to sell for right after paying the dividend in one year in order to justify its current price
Business
1 answer:
gtnhenbr [62]3 years ago
6 0

Answer:

The expected price after 1 year would be$55.5

Explanation:

According to the given data,

Price of the stock (Po) = $50

Dividend after 1year (D1) = $2

Equity cost of capital (KE) =15%

The formula for calculating the price after 1 year i.e.,(P1 ) is

                         

                          Po = (D1 + P1 )/ 1+KE                                      $50= ($2 + P1) / (1+0.15)

                        P1 = [$50(1.15)] - $2 = $55.5

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To be a successful manager, the only skills an IT project manager needs to possess is excellent technical skills.
xeze [42]

Answer:

false

Explanation:

For successful IT managers, IT knowledge is not only the skills that need to be inherited but skills like communication, organizational and negotiation skills are must also.

other skills other than IT is also play a very important role in the growth of an individual.

communication skills help to developed interpersonal skills. A good communicator is a good influencer and good motivator thus individual having good communication can help and guide  their subordinate to bring the positive results

4 0
3 years ago
Listed below are year-end account balances ($ in millions) taken from the records of Symphony Stores.
astra-53 [7]

Answer:

Explanation:

please find the attached for the full explanation of the answer.

before answering the total current assets that will be recorded by Symphony one needs to understand what a current asset is. A current asset  can be referred to a short term meaning that its span of life is short it can not be longer than 12 months hence current.

we also need to explain an asset: an item of property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies

Download docx
5 0
3 years ago
Jerry's Flowers had the following cost information related to its purchases of merchandise. Calculate the total cost of merchand
ch4aika [34]

Answer:

$91,100

Explanation:

Calculation to determine the total cost of merchandise purchased

Using this formula

Total cost of merchandise purchased = Invoice cost of merchandise purchases + Cost of transportation in - Purchase returns and allowances - Purchase discount

Let plug in the formula

Total cost of merchandise purchased= $100,000 + $500 - $400 - $9,000

Total cost of merchandise purchased= $91,100

Therefore the total cost of merchandise purchased is $91,100

3 0
3 years ago
The assumption that is necessary for a linear programming model to be appropriate and that ensures that the value of the objecti
Elan Coil [88]

Answer:

A. Additivity

Explanation:

Additivity simply means that the values of an objective function and total resources used can be found by adding all the contributions made by the objective functions and the decision variables of all resources used. That is, it assumes that the overall of an objective function is found by adding the contribution of each objective function to the overall. In additivity, interaction between variables doesnt exist.

5 0
3 years ago
Read 2 more answers
Acme Company has variable costs equal to 30% of sales. The company is considering a proposal that will increase sales by $12,000
mina [271]

Answer:

$0

Explanation:

The net income is the difference between the sales and total cost which comprises of the variable cost and fixed cost. The sales and variable cost are dependent on the number of units sold.

Let

u = number of units

s = selling price per unit

v = variable cost per unit

F = Fixed cost

I = Net income

I = su - F - vu

but vu = 0.3su

Hence

I = su - 0.3su - F = 0.7su - F

Given that the proposal will increase sales by $12,000,

New sales = su + 12000          ( in $)

and total fixed costs by $8,400

New fixed cost = F + 8400

New variable cost = 0.3( su + 12000) = 0.3su + 3600

New net income = su + 12000 - 0.3su - 3600 - F - 8400

= 0.7su - F

New net income is same as the old net income hence no increase.

4 0
3 years ago
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