What can a person do to help increase their credit score?

you believe that the Non-stick Gum factory will pay a dividend of $2 on its common stock next year. Thereafter, you expect divid

Svetlanka [38]

Answer:

You should pay a stock price of $33.33

Explanation:

We can use the formula below to calculate the price per share that you would be willing to pay;

RRR=(EDP/SP)+EDGR

where;

RRR-required rate of return

EDP-expected dividend payments

SP-share price

EDGR-expected dividend growth rate

This can also be written as;

Required rate of return=(Expected dividend payments/share price)+expected dividend growth rate

In our case;

RRR=12%=12/100=0.12

EDP=$2

SP=unknown

EDGR=6%=6/100=0.06

replacing;

0.12=(2/SP)+(0.06)

0.12-0.06=(2/SP)

0.06=(2/SP)

0.06 SP=2

SP=2/0.06

SP=33.33

You should pay a stock price of $33.33

6 0

3 years ago

True or False: If Jake's Fire Engines were a competitive firm instead and $75,000 were the market price for an engine, decreasin

nirvana33 [79]

Answer:

False

Explanation:

If Jake decides to increase total sales volume by decreasing the price of its engines, the decrease in price is too large compared to the increase in quantity demanded. The number of engines sold will increase from 5 to 6 (1 more unit) while the price of each engine will decrease from $75,000 to $50,000.

In this scenario, engines are price inelastic:

PED = % change in quantity demanded / % change in price = [(6 - 5) / 5] / [($50,000 - $75,000) / $75,000] = (1 / 5) / ($25,000 / $75,000) = 0.2 / 0.33 = 0.6

when PED is less than 1, the demand is inelastic. This means that a decrease in price will result in a smaller proportional increase in quantity demanded.

3 0

3 years ago

Which of the following is NOT a differentiator between manufacturing and service operations? A. Transportation B. Customer conta

KengaRu [80]

Answer: D) Cost per unit

Explanation:

In terms of manufacturing field, where the goods are manufactured, service operation is the process which workers manage and control demand of customers after getting training from operation manager.

Cost per unit is not the factor that acts as differing agent between manufacturing process and service operation because it is a part of the process which is handled by workers .

Other options are incorrect because transportation, contact of customer and resale are the factors that contrast the manufacturing service and service operations.Thus, the correct option is option(D)

5 0

3 years ago

Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par

polet [3.4K]

Answer:

Stahl Company

Stockholders' Equity section of the balance sheet

As of December 31, 2019

Authorized shares:

Common Stock, 600,000 at $2 par value

6%, Preferred Stock, 80,000 at $20 par value

Issued shares:

Common stock, 75,000 at $2 par value $150,000

6% Preferred stock, 5,000 at $20 par value 100,000

Additional Paid-in Capital, Common stock 975,000

Additional Paid-in Capital, 6% Preferred stock 25,000

Retained earnings, December 31, 2019 500,000

Total equity $1,750,000

Explanation:

a) Data and Calculations:

Authorized shares:

Common Stock, 600,000 at $2 par value

6%, Preferred Stock, 80,000 at $20 par value

Issued shares:

Cash $1,125,000 Common stock $150,000 Additional Paid-in Capital, Common stock (75,000 * $13) $975,000

Cash $125,000 6% Preferred stock, $100,000 Additional Paid-in Capital, 6% Preferred stock $25,000 ($5 * 5,000)

Retained earnings, December 31, 2019 = $500,000

6 0

3 years ago

Sally is in the new marketing department of a midsized lawn and garden company. She is working on the first marketing plan the f

Alisiya [41]

Answer:

D)

Explanation:

D) identify and evaluate opportunities by conducting segmentation, targeting, and opositioning analysis.

5 0

3 years ago