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Eddi Din [679]
3 years ago
12

A stock just paid an annual dividend of $0.40 per share. The firm expects to increase the dividend by 20 percent per year for th

e next four years and 3 percent per year thereafter. The discount rate is 11 percent. Which one of these is correct regarding the two-stage growth formula?
Business
1 answer:
Anon25 [30]3 years ago
7 0

Answer:

12.78

Explanation:

Two stage dividend growth model enables us to identify dividend value by incorporating the effect of multiple growth rates. This model assumes that dividend will pass out through 2 stages of growth. In first stage the dividend grows at a constant rate to a specified time then dividend grows at a further rate.

= Do (1 + g) + D1 (1 +g) + D2 (1 +g) + D3 (1 +g) + D3 * (1 +g2) / (r - g2)

0.4 * 1.2 + 0.48 * 1.2 + 0.6 * 1.2 + 0.7 *1.2 + 0.83 * 1.03 / 11 - 3

= 12.78.

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Texas Plating Company reported a cost of goods manufactured of $524,000, with the firm's year-end balance sheet revealing work i
Alborosie

Answer:

Beginning WIP= 122,000

Explanation:

Giving the following information:

Cost of goods manufactured= $524,000

Ending work in process= $79,000

Raw materials used in the production of $89,000

Direct labor of $145,000

Manufacturing overhead of $247,000

To calculate the beginning work in process we need to use the cost of goods manufactured formula:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

524,000= Beginning wip + 89,000 + 145,000 + 247,000 - 79,000

Beginning WIP= 122,000

8 0
3 years ago
Which spreadsheet type will determine how well a business has done over the past year?
masha68 [24]
<span>profit-and-loss statement</span>
6 0
3 years ago
Larry's parents divorced when he was 5. His father moved out of the area, and his mother is kept busy with trying to keep a roof
Aleks [24]

Answer:

The correct word for the blank space is:  Permissive.

Explanation:

Permissive parenting is the style by which parents allow their children to do what the children consider best for them, even if it is not necessarily correct. Under this approach, parents are seen more like friends since they do not provide the children with a well-established set of rules.

3 0
4 years ago
The Great Recession, a sharp economic downturn that begun in 2008, brought high unemployment, increased business failures, and a
Molodets [167]

According to Joseph Schumpeter, the stage that is described above is the Recovery stage.

<h3>What happens in the recovery stage?</h3>
  • The country begins to recover from the negative economic conditions of the depression.
  • Signs of stability will begin to appear.

In the recovery stage, economic activity will start to rise as there will be more production of goods and services.

Unemployment will also begin to drop as more companies hire people to produce. They will in turn increase spending which would further stimulate the economy.

In conclusion, this is the recovery stage.  

Find out more on the recovery stage at brainly.com/question/3951038.

8 0
2 years ago
SKRAM Corporation is appealing directly to the shareholders of IDNIC Corporation to acquire shares of IDNIC stock. This appeal i
soldi70 [24.7K]

Answer:

A hostile takeover with IDNIC corporation as the target company.

Explanation:

Since SKRAM is appealing directly to shareholders of IDNIC to acquire stocks of IDNIC corporation, it means they have a target of getting them to have a certain percentage of ownership in IDNIC because owning a stock in a company means having a percentage of ownership in that company.

This kind of appeal can be likened to trying to an aggressive push to make the shareholders take over the IDNIC corporation.

5 0
3 years ago
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