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hoa [83]
3 years ago
7

You are considering acquiring a common share of Sahali Shopping Center Corporation that you would like to hold for 1 year. You e

xpect to receive both $1.70 in dividends and $30 from the sale of the share at the end of the year. The maximum price you would pay for a share today is __________ if you wanted to earn a 12% return.
Business
1 answer:
Artemon [7]3 years ago
3 0

Answer: $28.30

Explanation:

Given the following :

Expected Dividend = $1.70

Earning from share sale at year end = $30

Expected rate of return on investment = 12%

Maximum price of stock :

(Earning from share + expected Dividend) / (1 + return rate)

(30 + 1.70) / ( 1 + 12%)

(30 + 1.70) / (1 + 0.12)

(31.70) / (1.12)

= $28.303571

= $28.30

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From an operations standpoint, one of the goals of the firm under the theory of constraints is to increase throughput while simu
OverLord2011 [107]

Answer:

True

Explanation:

The theory of constraints focuses on establishing the most important limiting factor or constraint in a business and improve it in order to improve the whole company's performance.

In simple terms, a company recognizes their greatest weakness and tries to improve it, so that it no longer represents a limitation.

This theory was originally developed for manufacturing companies, and it was meant to reduce bottlenecks (manufacturing constraints). Therefore one of its main goals is to lower inventory levels and operating costs while increasing production output.

8 0
3 years ago
Which of the following is the most appropriate topic to address in a college application essay?
Aleksandr [31]

Answer:

C

Explanation:

because I feel that many individuals would select the most basic option, such as A or B.

5 0
3 years ago
Piper Rose Boutique has been approached by the community college to make special polo shirts for the faculty and staff. The coll
Burka [1]

Answer:

Piper Rose Boutique should accept the special order made by the college

Explanation:

Price per unit the college is willing to pay = $6

Total variable cost per unit to be incurred by Piper Rose Boutique = Direct materials + Direct labor + Variable factory overhead = $2.00 + $0.50 + $1.50 = $4,00

Since the price per unit of $6 that the college is willing to pay is greater than the total variable cost per unit of $4 to be incurred by Piper Rose Boutique, Piper Rose Boutique should accept the special order made by the college.

Note: the Fixed factory overhead is not relevant in taking the decision. Only the variable costs are relevant.

3 0
3 years ago
Todd Mountain Development Corporation is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow a
PilotLPTM [1.2K]

Answer:

the intrinsic value of the stock is $60

Explanation:

The computation of the intrinsic value of the stock is as follows:

But before that the cost of equity is

The Cost of Equity is

= Risk Free Rate + Beta × (Market Return - Risk Free Rate)

= 8% + 0.80 × (18% - 8%)

= 16%

Now

Intrinsic Value is

= Next year Dividend  ÷ (Rate of Return - Growth rate)

= $3 ÷ (16% - 11%)

= $60

hence, the intrinsic value of the stock is $60

7 0
3 years ago
The U.S. Department of Agriculture guarantees dairy producers that they will receive at least $1.00 per pound of butter they sup
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the price is 546

because you add all that and you get that muchh

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3 years ago
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