First question, please help. My teacher is super mad rn, need to finish dis.

The FabulousHI Company expects a constant growth in earnings and dividends of 2.5%/year into the foreseeable future. It is expec

Lunna [17]

Answer:

a. $26.67

b. 2.50%

Explanation:

a. Computation of the current value of the stock is given below:-

Price of stock ÷ Required rate of return - Growth rate

= $1.20 ÷ (0.07 - 0.025)

= $1.20 ÷ 0.045

= $26.67

b. Computation of capital gains yield on this stock is shown below:-

= Required rate - Dividend yield

= 7% - ($1.20 ÷ $26.67)

= 7% - 0.04499

= 2.50%

7 0

3 years ago

The following events apply to Gulf Seafood for the 2018 fiscal year: The company started when it acquired $60,000 cash by issuin

Arte-miy333 [17]

Answer:

depreciation per year: 9,000

<u>operating income: </u> 41,000

Explanation:

Q: Adjusted the records to reflect the use of the cooktop.

Under straight-line the company will recognize the same amount of depreciation over the course of the assets life. At year-end the company will adjsut for the loss in value for the asset generated for the past of time.

$\frac{cost - salvage \: \:value}{useful \:\: life}$

$\frac{40,000- 4,000}{4}$

depreciation per year: 9,000

<u>operating income:</u>

revenues 72,000

salaries expense: (25,000)

depreciation per year: (9,000)

total 41,000

6 0

3 years ago

Two months ago, Air-tite Corporation purchased 4,500 pounds of Hydrol, paying $15,300. The demand for this product has been very

Anna007 [38]

Answer: The $4.05 market price

Explanation: Air-tite can buy or sell Hydrol at $4.05. If they decide to accept the order, there has to be a higher return on the use of Hydrol in the return than they would get from selling Hydrol as is.

There may also be an opportunity cost to using the product for this special order if there is an order that would yield higher returns for the use of Hydrol.

The quantity that would remain after making the special order does not have any impact on the decision making process, as they are considering just one order that requires Hydrol.

The purchase price is not relevant as they cannot purchase Hydrol at that price in the present. The total quantity is not relevant either as they have enough for the order.

3 0

3 years ago

You invest all the money you earned during your summer sales job (a total of $45,000) into the stock of a company that produces

erica [24]

Answer:

The annual rate of return of the invesment will be -14,97%

Explanation:

The initial investment is 45.000 and after 5 years the value of the investment is only 20.000. Here we can see a destruction of value (20.000 < 45.000). In finance, the time takes an essential part in calculation, so through the interest rate we calculated how bad was the investment in annual terms. The formula is as follows: Final investment value=(Initial investment*(1+interest rate)^(total years)) in our case would be: 20.000=(45.000*(1+interest rate)^(5)) From this formula we got -14,97%

8 0

3 years ago

To motivate employees, several major department stores are experimenting with incentive compensation plans, although compensatio

Evgen [1.6K]

Stores can make sure their employees are being incentivized when what they do benefits the customer and the store as a whole. Their main goal is to serve the customer because a happy customer comes back and refers their fiends. The employees can be rewarded on referral base actions, feedback cards and other ways that show management they are being honest and truthful to the customer.

3 0

3 years ago