1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ElenaW [278]
3 years ago
10

BioScience Inc. will pay a common stock dividend of $4.60 at the end of the year (D1). The required return on common stock (Ke)

is 17 percent. The firm has a constant growth rate (g) of 7 percent. Compute the current price of the stock (P0)
Current Price______________
Business
1 answer:
Angelina_Jolie [31]3 years ago
8 0

Answer:

The current price of the stock is $46

Explanation:

We will use the gordon growth model to calculate the price of the stock. The formula is

Price= D1/R-G

D1 is the year end dividend

R is the required return on the stock and G is the constant growth rate.

We will plug in the numbers in the formula in order to find the price.

4.60/(0.17-0.07)=46

You might be interested in
A property is listed for sale at $235,000. A buyer's offer of $220,000 is rejected by the seller. Six months later, the seller r
atroni [7]

Explanation:

the property's market value is the $210,000

8 0
3 years ago
Larned Corporation recorded the following transactions for the just completed month. $80,000 in raw materials were purchased on
sesenic [268]

Answer and Explanation:

The Journal entry is shown below:-

a. Raw material Dr, $80,000

                To Account payable $80,000

(Being purchase of raw material is recorded)

Here we debited the raw material as it increased the assets and we credited the accounts payable as  it also increased the liabilities

b. Work in process Dr, $62,000

   Manufacturing overhead Dr $9000

           To Raw material $71,000

(Being raw material used is recorded)

Here we debited the work in progress ,  the manufacturing overhead as it increased the assets and expenses and credited the raw material as  it decreased the assets

c. Work in process Dr, $101,000

   Manufacturing overhead Dr, $11,000

                       To Cash $112,000

(Being paid to labor is recorded)

Here we debited the work in progress ,  the manufacturing overhead as it increased the assets and expenses and credited the cash as  it decreased the assets

d. Manufacturing overhead Dr, $175,000

          To Accumulated depreciation-Equipment $175,000

(Being manufacturing overhead is recorded)

Here we debited the manufacturing overhead as it increased the expenses and we credited the accumulated depreciation of depreciation as it reduced the assets

5 0
3 years ago
Which of the following best describes a trial balance?
Lubov Fominskaja [6]

Answer:

A

Explanation:

In the accounting process extracting a trial balance is the final step.

8 0
2 years ago
ANSWER QUICKLY PLEASE: What do certifications show a potential employer? Answer in 3–4 sentences.
Nat2105 [25]

Answer: That you are qualified for the job role

Explanation:

Certifications allows an employees to show a current or future hiring manager that they possess the skill set and expertise needed for the job.

They help the employers hire the most competent and qualified personnel for the job as it shows you know your way around the job. And when that certification is now backed by real world on the job experience, this gives the hiring manager a sense of security.

3 0
3 years ago
Suppose that $2500 is placed in a savings account at an annual rate of 5%, compounded quarterly. Assuming that no withdrawals ar
babymother [125]

Answer:

number of periods = 8 years.

Explanation:

We know,

Future Value = Present value × (1 + r)^{n}

Here,

Present value = PV = $2,500

Future value = FV = $3,500

Interest rate (Compounding) = 5% = 0.05

We have to determine how many years (Periods) it will take, n = ?

Putting the values into the above formula,

$3,500 = $2,500 × (1 + 0.05)^{n}

or, (1 + 0.05)^{n} = $3,500 ÷ $2,500

or, n log 1.05 = 1.4

or, n × 0.17609 = 1.4

or, n =  1.4 ÷ 0.17609

Therefore, number of years = 7.95 or 8 years.

5 0
3 years ago
Other questions:
  • A new business has total net sales of $5,000 and the cost of goods sold is $3000. What is the total gross margin from sales?
    9·1 answer
  • The Plastics Division of Weston Company manufactures plastic molds and then sells them for $70 per unit. Its variable cost is $3
    9·1 answer
  • If Ben & Jerry’s sold more units of its Bonnaroo Buzz Fair Trade-sourced super premium ice cream to U.S. consumers as a resu
    13·1 answer
  • Securitization, the process of forming new securities by bundling or slicing up groups of securities like mortgages and bonds, i
    13·1 answer
  • Palmona Co. establishes a $140 petty cash fund on January 1. On January 8, the fund shows $29 in cash along with receipts for th
    6·1 answer
  • Information related to plant assets, natural resources, and intangibles at the end of 2020 for Cheyenne Corp. is as follows: bui
    7·1 answer
  • Macroeconomics, as opposed to microeconomics, includes the study of what determines the level of:___________
    13·1 answer
  • The traditional economic framework assumes that people make rational economic decisions, that is, that they act in ways that max
    13·1 answer
  • Which of these is a criterion used to select a target market segment?
    5·1 answer
  • Next year baldwin plans to include an additional performance bonus of 0. 5% in its compensation plan. This incentive will be pro
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!