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denis23 [38]
4 years ago
8

Parcel Corporation expects to pay a dividend of $5 per share next year, and the dividend payout ratio is 50 percent. If dividend

s are expected to grow at a constant rate of 8 percent forever, and the required rate of return on the stock is 13 percent, calculate the present value of growth opportunities.
Business
1 answer:
irakobra [83]4 years ago
3 0

Answer:

The present value of growth opportunities is $23.08

Explanation:

EPS = dividend/payout ratio

       = 5/50%

       = 10

The present value of growth opportunities

= (Price with growth -EPS)/cost of capital

= (100 - 10)/0.13

= $23.08

Therefore, The present value of growth opportunities is $23.08

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If the demand for a good falls by less than the supply of the good rises, then the good’s equilibrium price will __________ and
STatiana [176]

If the demand for a good falls by less than the supply of the good rises, then the good’s equilibrium price will fall and its equilibrium quantity will rise.
According to the law of demand indicates that as price increases, consumers are willing and able to purchase less so the quantity demanded will fall and cause the downward sloping demand curve. So when price falls, consumers are willing and able to purchase more.
6 0
4 years ago
A company switched from the cash basis to the accrual basis for recognizing warranty expense. The unrecorded liability for warra
Ostrovityanka [42]

Answer:

Report a prior period adjustment decreasing retained earnings by $1,040,000

Explanation:

Report a prior period adjustment decreasing retained earnings by $1,040,000

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Cr Estimated warranty liability $1,600,000

Therefore As a result of this change, the firm would Report a prior period adjustment decreasing retained earnings by $1,040,000

6 0
3 years ago
Which of the following people are structurally unemployed? Select all answer options that apply. Choose one or more: A. A worker
a_sh-v [17]

Answer:

Structural unemployment is present in case of A, B, C, and D.

Explanation:

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Unemployment caused by drought cannot be classified as structural unemployment. The rest of the examples involves cases of structural unemployment.

8 0
3 years ago
26. Currently, Bruner Inc.'s bonds sell for $1,250. They pay a $120 annual coupon, have a 15-year maturity, and a $1,000 par val
maksim [4K]

Answer:

2.11%

Explanation:

From the information given; we use the Excel spreadsheet to compute the  difference between this bond's YTM(Yield to maturity) and its YTC(Yield to call).

From the diagram; we will see that the

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Therefore the difference between this bond's YTM and its YTC = (8.91 - 6.81)%

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7 0
3 years ago
You operate a small catering firm specializing in sit-down dinner parties that you prepare and serve yourself with no helpers. A
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Well I would say B because the passage states that she doesn't have the staff and so on and so forth. But it didn't say that she couldn't cook it so I would cook it but make her subcontract the rest.
7 0
4 years ago
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