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ella [17]
3 years ago
11

Arcs and Triangles paid an annual dividend of $1.47 a share last month. The company is planning on paying $1.55, $1.63, and $1.6

5 a share over the next three years, respectively. After that, the dividend will be constant at $1.70 per share per year. What is the market price of this stock if the market rate of return is 11 percent?
Business
1 answer:
Fittoniya [83]3 years ago
5 0

Answer:

Price of stock   =$ 15.31

Explanation:

<em>According to the dividend valuation model , the current price of a stock is the present value of the expected future dividends discounted at the required rate of return.</em>

<em>So we will discount the steams of dividend using the required rate of 11% as follows</em>:

Year                                             Present Value(PV)

1       $1.65 × 1.11^(-1)   =               1.486

2     $1.63× 1.11^(-2)     ==            1.322

3       $1.65× 1.11^(-3)               =  1.2064

<em>Year 4 and beyond</em>

This will be done in two steps

Step 1 :

PV of dividend in year 3  = 1.70/0.11 = 15.45

Step 2

PV of dividend in year 0 =15.45×  1.11^(-3)= 11.30

Price of stock =  1.486+  1.322  + 1.2064 + 11.30

                        =$ 15.31

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Nat2105 [25]

Answer:

Cost of goods manufactured= $3,120

COGS= $2,750

Explanation:

<u>To calculate the cost of goods manufactured, we need to use the following formula:</u>

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

Cost of goods manufactured:

beginning WIP= 0

direct materials= 2,200

Direct labor= 1,000

Factory overhead= 520

Ending work in process= 600

Cost of goods manufactured= $3,120

<u>Now, we can determine the cost of goods manufactured:</u>

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 0 + 3,120 - 370

COGS= $2,750

4 0
3 years ago
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Orlov [11]

Answer:

Marketing is the process of getting the right goods or services or ideas to the right people at the right place, time, and price, using the right promotion techniques and utilizing the appropriate people to provide the customer service associated with those goods, services, or ideas. This concept is referred to as the “right” principle and is the basis of all marketing strategy. We can say that marketing is finding out the needs and wants of potential buyers (whether organizations or consumers) and then providing goods and services that meet or exceed the expectations of those buyers. Marketing is about creating exchanges. An exchange takes place when two parties give something of value to each other to satisfy their respective needs or wants. In a typical exchange, a consumer trades money for a good or service. In some exchanges, nonmonetary things are exchanged, such as when a person who volunteers for the company charity receives a T-shirt in exchange for time spent. One common misconception is that some people see no difference between marketing and sales. They are two different things that are both part of a company’s strategy. Sales incorporates actually selling the company’s products or service to its customers, while marketing is the process of communicating the value of a product or service to customers so that the product or service sells.

7 0
3 years ago
For a company using target costing, market price minus profit equals target price.
Sav [38]

Answer:

The answer is false

Explanation:

Market price minus profit equals target cost and not target price.

6 0
3 years ago
Which statement best summarizes the role of businesses in the flow of
Tems11 [23]

Answer: D

Explanation:

apex

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3 years ago
On March 1, 2019, Baltimore Corporation had 60,000 shares of common stock outstanding with a par value of $5 per share. On March
Eva8 [605]

Answer:

The retained earning would be debited by ($60,000)

Explanation:

According to the given data we have the following:

Number of shares outstanding=60,000

par value of $5 per share

stock dividend declared=cc

Therefore,  to calculate the amount either (debited) or credited to retained earnings we would have to make the followin calculation:

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