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Goryan [66]
3 years ago
15

Tayco Corporation has just paid dividends of $3 per share. The earnings per share for the company was $4. If you believe that th

e appropriate discount rate is 15 percent and the long-term growth rate in dividends is 6 percent, and earnings is 6 percent, then the firm's P/E ratio is
Business
1 answer:
tino4ka555 [31]3 years ago
8 0

Answer:

the price earning ratio is 8.33

Explanation:

The computation of the price earning ratio is shown below:

P/E Ratio is

= share price ÷  Earning Per share

where,

The price of a share is

= 3 × 106

= $3.18

And, the earning per share is

= $4 × (1.06) ÷ (0.15 - 1.06)

So, the price earning ratio is

= (3 × (1.06) ÷  4(1.06)÷ (0.15 -0.06))

= 8.33

Hence, the price earning ratio is 8.33

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When using the specific identification inventory method, cost of goods sold equals the ______.
Elenna [48]

When using the specific identification inventory method, the cost of goods sold equals the "revenues from the goods sold."

This is because the specific identification inventory method calculates each unit of n item in an inventory from when it enters the inventory until it leaves it.

The specific identification inventory method is used by many industries such as automobiles, furniture, jewelry, etc.

This method is mostly used when each unit of items can be specified easily, either through serial number, stamped receipt date, or other means of identification.

Hence, in this case, it is concluded that the specific identification inventory method is a good method to use in certain industries.

Learn more here: brainly.com/question/15896939

8 0
3 years ago
Read 2 more answers
The anticipated purchase of a fixed asset for $400,000, with a useful life of 5 years and no residual value, is expected to yiel
Evgesh-ka [11]
The answer is a.True
The cost of the fixed asset is already excluded from the net income. In this case, the rate of return can be computed by the total net income divided by the cost of the fixed asset. So that would be $200,000/$400,000. The rate of return would be 50%
6 0
3 years ago
Dropshot Corporation stock currently sells for $64.53 per share. The market requires a return of 8 percent on the firm’s stock.
Debora [2.8K]

Answer:

D=$1.52914

The most recent dividend per share paid on the stock is $1.52914.

Explanation:

Formula we are going to use is:

P=D*\frac{1+g}{r-g}

Where:

P is the current selling price

D is he recent dividend per share

g is the growth rate

r is the rate of return

Above formula will become:

D=\frac{P*(r-g)}{1+g} \\D=\frac{\$64.53*(0.08-0.055)}{1+0.055}

D=$1.52914

The most recent dividend per share paid on the stock is $1.52914.

7 0
4 years ago
1. Graphically illustrate and explain the effects of an increase in the rate of technological progress on the Solow growth model
ch4aika [34]

Answer:

Explanation:

The Solow Growth Model is a short run growth model of economic growth which shows or illustrates the changes in the level of output in an economy over time, as a result of changes in

- savings rate

- population growth rate

- rate of technological progress.

The diagram attached explains the model.

In the short run, increase in technology will increase the output per worker (looking from the microeconomic perspective) and the aggregate output (looking from the macro perspective) in the economy.

This increase in output is later stabilized in the long run.

6 0
3 years ago
Mackenzie, a successful store manager, leads her employees by encouraging them and showing that she genuinely believes in them.
Rzqust [24]

Mackenzie manages at Kohlberg's conventional level of personal moral development.

8 0
4 years ago
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