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Licemer1 [7]
3 years ago
8

Assume that Bon Temps is expected to experience supernormal growth of 30% for the next 3 years, then to return to its long-run c

onstant growth rate of 6%. What is the stock’s value under these conditions? What are its expected dividend yield and its capital gains yield in Year 1? In Year 4?
Business
1 answer:
svetoff [14.1K]3 years ago
3 0

Answer:

Expected value one year from now=D2/(k-g)

=2.25/(16%-6%)

=22.5

Explanation:

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Ivanhoe company purchased machinery with a list price of $88000. They were given a 7% discount by the manufacturer. They paid $4
cestrela7 [59]

Answer:

A) $6194

Explanation:

Price before discount = $88,000

discount rate = 7%

Amount of discount = 7% *$88,000 = $6,160

Price after discount = Price before discount - Amount of discount

= $88,000 - $6,160

Price after discount = $81,840 (this is the price included in depreciation)

Items included in total cost of machinery;

Price of machinery after discount = $81,840

Shipping  cost = $400

Sales tax = $4,700

Therefore, total cost is therefore = $81,840 + $400 + $4,700 = $86,940

Depreciation per year = (Total cost of the machinery - salvage value) / useful life

= (86,940 - 25,000)/ 10

= 61,940/10

= 6,194

Therefore annual depreciation = $6,194

8 0
3 years ago
Why is investing in a mutual fund less risky than investing in a particular company’s stock?
MrRissso [65]
A mutual funds only invest in blue-chip stocks
8 0
3 years ago
Read 2 more answers
What is the primary role of consumers in a free market economy?
S_A_V [24]

Answer:

The consumer is the one who pays to consume the goods and services produced.

Explanation:

As such consumers play a vital role in the economic system of a nation. In absence of effective demand the producers would lack a key to motivation

4 0
3 years ago
Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of
Verizon [17]

Answer:

=$422,000

Explanation:

As per the contribution margin concept, the contribution margin per unit is equal to the selling price per unit minus variable costs.

Therefore, the total contribution margin is the sales minus variable costs.

The contribution margin for the west will be sales($930,000) minus variable cost($488,000)

=$930 ,000 - $488,000

=$422,000

4 0
3 years ago
Scribd in the marketplace of today, ________ are the primary means of socializing companies and brands.
MrMuchimi

The answer is: Social networks and related tools

Social media and other related tools allow the companies to provide information regarding their products to a wide variety of consumers segmentation with relatively cheaper price. Due to the low barrier of entry, small businesses often find easier success in marketing through these mediums rather than using traditional media.

4 0
3 years ago
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