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kompoz [17]
3 years ago
12

The Uptowner will pay an annual dividend of $3.26 a share next year with future dividends increasing by 2.8 percent annually. Wh

at is the market rate of return if the stock is currently selling for $49.10 a share?
Business
1 answer:
romanna [79]3 years ago
4 0

Answer:

rate of return = 9.44 %

Explanation:

given data

dividend D = $3.26

dividends increasing g = 2.8 %

currently selling S = $49.10

to find out

market rate of return

solution

we will apply here rate of return formula that is

rate of return =D / S  +  g   .................1

put here all these value D = 3.26 , S = 49.10 and g = 2.8% in equation 1

rate of return =D / S  +  g

rate of return =3.26 / 49.10  +  2.8%

rate of return = 0.06639 +0.028

rate of return = 0.09439

so rate of return = 9.44 %

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Answer:

net cash from investing activities = -$4,940

operating and financing activities are not affected.

Explanation:

the journal entries should be:

January 1, socks purchased

Dr Investment in Affiliate 5,000

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<u>Dr Cash 60</u>

    Cr Investment in Affiliate 60

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Only the cash flow from investing activities will be affected by Parent's investing in Affiliate. Since the company uses the equity method, the operating and financing cash flows are not affected.

The cash flow from investing activities will:

  • Decrease by $5,000 due to the purchase of stocks.
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3 years ago
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7 0
3 years ago
You are evaluating an investment that will provide the following cash flows at the end of each of the following years: year 1, $
stealth61 [152]

Answer:

$37,680.95

Explanation:

The maximum i would be willing to pay is the present value of the cash flows

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = $12,500

Cash flow in year 2 = $10,000

Cash flow in year 3 = $7,500

Cash flow in year 4 = $5,000

Cash flow in year 5 = $2,500

Cash flow in year 6 = 0

Cash flow in year 7   $12,500

I = 9%

PV = $37,680.95

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

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2 years ago
7. Problems and Applications Q7 Your cousin Vinnie owns a painting company with fixed costs of $200 and the following schedule f
In-s [12.5K]

Answer:

4 houses per month.

Explanation:

Note: See the attached file for the calculation.

Efficient scale of production is can be described as the number of units of production where average total cost (ATC) of production is lowest.

From the attached file, the ATC of $70 is the lowest at 4 houses per month and 4 houses per month is therefore the efficient scale.

Download xlsx
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3 years ago
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Tasya [4]
<span>Automotive industry
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