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3 years ago

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The next dividend payment by Savitz, Inc., will be $2.04 per share. The dividends are anticipated to maintain a growth rate of 7

percent forever. If the stock currently sells for $41 per share, what is the required return

1 answer:

Morgarella [4.7K]3 years ago

7 0

I don’t know the answer I just need the points like really badly and I’m really sorry

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Many academic institutions offer a sabbatical policy. Every seventh year a professor is given a year free of teaching and other

Fittoniya [83]

Answer:

$ 127,773.36

Explanation:

The professor will be in sabbatical in years 7, 14, 21, 28, 35 and 42

In each of these years, he receives full pay amounting to=50,000

The PV of the sabbatical full pay

= $\frac{50,000}{1.04^7} + \frac{50,000}{1.04^14} + \frac{50,000}{1.04^21} + \frac{50,000}{1.04^28} + \frac{50,000}{1.04^35} +\frac{50,000}{1.04^42} = 84,101.22$

=50,000/(1+4%)^7+ 50,000/(1+4%)^14+ 50,000/(1+4%)^21+ 50,000/(1+4%)^28+50,000

/(1+4%)^35+ 50,000/(1+4%)^42

==50,000/(1+4%)^7+ 50,000/(1+4%)^14+ 50,000/(1+4%)^21+ 50,000/(1+4%)^28+50,000

/(1+4%)^35+ 50,000/(1+4%)^42

= $\frac{50,000}{1.316} + \frac{50,000}{1.732} + \frac{50,000}{2.279} +\frac{50,000}{2.999} +\frac{50,000}{3.946} + \frac{50,000}{5.193}$

=37,993.92 + 28,868.36 + 21,939.45 + 16,672.22 + 12,671.06 + 9,628.35

= $ 127,773.36

Thus, at an interest rate of 4%, the present value of all the sabbatical earnings amount to $ 127,773.36

6 0

3 years ago

ClearPrint Company sells inkjet printers for a low basic price. Customers need to buy inkjet cartridges repeatedly. What type of

PilotLPTM [1.2K]

Answer:

C; captive

Explanation:

The correct answer here is the captive product pricing. This system enables companies to sell other product known as the captive product alongside the main product which is called the core product.

By selling the printer at a reduced price, the company can make a gain on this by ensuring that the auxiliary product which is the catridge is something that needs to be bought repeatedly.

Thus, the company has enhanced the sales of the ink catridge by ensuring that it’s an important part needed for the main product which is the printer to function.

So in this question, we can see that the catridge is the peripheral or auxiliary product otherwise called the captive product while the core product is the printer which is sold basically at a cheaper price

8 0

2 years ago

Why might a tissue such as the pancreas not be a good source to choose for the isolation?

DIA [1.3K]

LDH production is not associated with pancreatic cell secretions. Pancreas secretes the following pancreatic lipases to convert fats into lipoproteins and triglycerides.

7 0

3 years ago

When are product costs included on the income statement?

ioda

Answer:

The correct answer is D. When the product is sold and delivered to a customer.

Explanation:

It is recognized at the time of the sale, because the company receives an income as a result of the recovery of its cost plus the established profit margin. When the sale has not been made, it remains within the product inventories until the sale occurs and becomes an operational income.

4 0

2 years ago

Turnbull Co. is considering a project that requires an initial investment of $570,000. The firm will raise the $570,000 in capit

ss7ja [257]

Answer:

WACC = 10.868%

Explanation:

The following data table will show the easiest way to calculate weighted average cost of capital.

Capital components Investment ($) Weight

Debt Capital (Wd) 230,000 230,000 ÷ 570,000 = 0.40

Equity Capital (We) 320,000 320,000 ÷ 570,000 = 0.56

Preference capital (Wp) 20,000 20,000 ÷ 570,000 = 0.04

Total Investment $570,000 1.00

We know,

WACC = [Wd × Kd (1 - T)] + [Wp × kp] + [We × ke]

Given,

Kd (1 - T) = 9.6% × (1 - 0.25) = 7.2%

kp = 10.7%

ke = 13.5%

WACC = [0.40 × 7.2%] + [0.04 × 10.7%] + [0.56 × 13.5%]

or, WACC = 2.88% + 0.428% + 7.56%

Therefore, WACC = 10.868%

8 0

3 years ago