Answer:
Stock W 3.64%
Stock X 14.00%
Stock Y 21.28%
Stock Z 1.56%
Explanation:
We calculate the horizon value for each one. This will provide us with their price and with that, we solve for dividends yield
Stock W - Horizon Value
3.50 x 1.10 3.85
----------------- = ----------- = 96.25
0.14 - 0.10 0.04
Dividend yield: 3.50 / 96.25 = 0.036363636 = 3.64%
Stock X: g= 0
3.5 / 0.14 = 25
3.5 / 25 = 0.14
Stock Y g = -0.06
3.50 x (1 - 0.06) / (0.14 - (-0.06)) = 16.45
Dividend yield 3.50 / 16.45 = 0,212765957 = 21.28%
Stock Z
![\left[\begin{array}{ccc}#&Dividends&Discounted\\&3.5&\\1&4.2&3.68\\2&5.04&3.88\\2&5.6448&217.17\\&TOTAL&224.73\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccc%7D%23%26Dividends%26Discounted%5C%5C%263.5%26%5C%5C1%264.2%263.68%5C%5C2%265.04%263.88%5C%5C2%265.6448%26217.17%5C%5C%26TOTAL%26224.73%5C%5C%5Cend%7Barray%7D%5Cright%5D)
First we solve for the next two dividends:
next year 3.50 x (1 + 20%) = 4.2
second year 4.20 x (1 + 20%) = 5.04
Here we solve for the horizon value of the constant grow:
5.04 x 1.12 / (0.14 - 0.12) = 282.24
now, we solve for the Present value of each one and add them together.
Getting a value of $224.73
We now solve for dividend yield: 3.50 / 224.73 = 0,01557 = 1.56%
Answer:
See below
Explanation:
1. Cost of the Tramel Job
= Direct material cost + Direct labor cost + Overhead applied
= $1,900 + $500 + (140% × $500)
= $1,900 + $500 + $700
= $3,100
2. Journal entry to record the overhead cost
Overhead cost account Dr $500
To Material account Cr $400
To Labor account Cr $100
3. Effect of additional rework required $200 of direct labor on the cost of Tramel job
= Direct material cost + Direct labor cost + Overhead applied
= $1,900 + ($500 + $200) + (140% × $500)
= $1,900 + $700 + $700
= $3,300
The effect of additional rework required of $200 of direct labor cost is an increase of $200 on the cost of job for Tramel
Professor Simmons will be discussing Convergence Theory. It states that all industrial systems, whether capitalist or communist, would converge in their social, political and economic systems because of the determinant effects of technological development.
Answer:
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Explanation:
