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suter [353]
3 years ago
10

You are considering buying common stock in Grow On, Inc. The firm yesterday paid a dividend of $7.80. You have projected that di

vidends will grow at a rate of 9.0% per year indefinitely. If you want an annual return of 24.0%, what is the most you should pay for the stock now
Business
1 answer:
Lina20 [59]3 years ago
3 0

Answer:

The answer is $56.68

Explanation:

Solution

We recall that:

The firm paid a dividend of =$7.80

The projected growth of dividends is at a rate = 9.0%

The annual return = 24.0%

Now,

V = ($7.80 * (1.09)/(.24 - 0.9)

= (8.502)/(.24-0.9)

= (8.502) * (-0.66)

= $56.68

Therefore, this would be the most we would pay for the stock. If we paid less than that, our return would be above the 24%.

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Last year, Michelson Manufacturing reported $10,250 of sales, $3,500 of operating costs other than depreciation, and $1,250 of d
Margarita [4]

Answer and Explanation:

The computation is shown below:

Particulars                       Last year            Current year

Sales                               $10,250              $10,250

Operating cost               -$3,500              -$3,500

Operating income           $6,750               $6,750

less:

Interest expense

(6.5% of 3,500)               -$227.50           -$227.50

depreciation expense   -$1,250               -$1,975  ($1,250 + $725)

Earning before tax           $5,272.50          $4,547.50

Less: Income tax

at 21%                              -$1,107.23           -$954.98

Net income                      $4,165.27            $3,592.53

Now the net cash flow is

Net income                       $4,165.27             $3,592.53

Add:

Depreciation                      $1,250                 $1,975

Total net cash flows           $5,145.27          $5,567.53

Change is $422.26

6 0
3 years ago
The Charade Corporation is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable
melisa1 [442]

Answer:

The options are not correct;

Find below question as well:

The Charade Company is preparing its Manufacturing Overhead budget for the fourth quarter of the year.

Budgeted variable factory overhead $5.00 per direct labor hour

Budgeted fixed factory overhead $75,000 per month, of which $15,000 is factory depreciation

Required:

1. If the budgeted direct labor time for November is 7,000 hours then the total budgeted factory overhead for November is:

a) $ 95,000.

b) $110,000.

c) $ 75,000.

d) $125,000.

The answer to your question is $132,500(not one of the options)

The answer to my question is $110,000,option B

Explanation:

The total manufacturing overhead is made of budgeted fixed manufacturing overhead of $90,000 and the budgeted variable manufacturing overhead of $5 per direct labor hour multiplied by budgeted direct labor hours of 8,500 hours.

Total manufacturing overhead=$90,000+($5*8500)

                                                  =$90,000+$42,500

                                                  =$132,500

Answer based on my question

Total manufacturing overhead=$75,000*($5*7000)

                                                  =$110,000

The correct option is B,$110,000

7 0
3 years ago
A company engineer has an idea that by implementing an IoE solution the company will save time in getting a product to market. T
frozen [14]

Answer:

Software system modeling is a technique to deal with the complexity inherent in these systems. The use of models helps the software engineer to "visualize" the system to be built. In addition, models of a higher level of abstraction can be used for communication with the customer. Finally, the modeling tools and those of Automated Software Engineering. They can help verify the correctness of the model.

3 0
4 years ago
Which arrangement represents a long-term company-wide incentive plan that provides employees with the option to purchase ownersh
bezimeni [28]

Employee stock option plans represents long term company wide incentive plan that provides employees with the option to purchase ownership in the company. Many companies use employee stock options plans to compensate, hold, and recruit employees. These are contracts between an employer and its employees that give employees the ability to acquire a particular number of the company's shares at a fixed price.

4 0
3 years ago
The Miller Company earned $111,000 of revenue on account during Year 2. There was no beginning balance in the accounts receivabl
Molodets [167]

Answer:

$31,670

Explanation:

Given that,

Revenue earned on account during Year 2 = $111,000

Cash collected from its receivables accounts during Year 2 = $76,000

Uncollectibles:

= 3% of its sales on account

= 0.03 × $111,000

= $3,330

Net realizable value of Miller's receivables at the end of Year 1:

= Revenue earned on account - Cash collected from its receivables accounts - Uncollectibles

= $111,000 - $76,000 - $3,330

= $31,670

5 0
3 years ago
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