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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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When inspecting a fire extinguisher:
NikAS [45]
B because it the right answer there
7 0
3 years ago
Stock A has the following returns for various states of the economy:
Nadusha1986 [10]

Answer:

The correct answer is b.12.7%

Explanation:

Expected return: It is used to calculate the expected value of the formula

In this question, the formula should be used which is shown below:

Expected return = Return of portfolio × Probability of portfolio

So,

For Recession, the expected return would be equal to

= -72 × 9% = -6.48%

For below average, the expected return would be equal to

= -15 × 16% = -2.4%

For average, the expected return would be equal to

= 16 × 51% = 8.16%

For above average, the expected return would be equal to

= 35 × 14% = 4.9%

For boom, the expected return would be equal to

= 85 × 10% = 8.5%

Now, do the sum of all states of the economy, so that the solution can arrive.

So, the answer would be

= -6.48% + (-2.4%) +8.16% +4.9% + 8.5%

= 12.68% round off = 12.7%

Thus, the Stock A's expected return is 12.7%

And, the correct answer is b.12.7%

6 0
3 years ago
1. Define business. Explain the functions of business.
kotegsom [21]

\large{ \tt{☄ \: ANSWER}} :

↦ Business is an economic activity that is directed towards acquiring and earning profit and wealth through customer's satisfaction. It plays an important role for the economic development of the country and uplift living standard of the people. Some of the functions of business are described below :

  • Creation of utilities : For the fulfillment of needs of customers , business creates various types of utilities. A business has many components and each component is involved in the creation of the certain utility. For instance : manufacturers create from utility , transportation system created place utility , warehousing time utility and insurance companies risk utility.

  • Generation of employment : Business is a source of employment. Various types of employees are required to a business. In industries , both skilled and unskilled manpower are required for production , distribution and auxiliaries functions. Hence , the development of industry and commerce helps to solve the unemployment problem of a nation.

  • Earning Foreign Currency : Business is the main source of earning Foreign Currency. Foreign currency can be earned by exporting surplus products and services to foreign countries. The development of export trade brings favourable balance in payment.

  • Provides investment opportunities : Business provides investment opportunities to the investors in production and distribution activities. Depending on the nature of investment ; investors receive dividend , interest or other financial benefits. The persons of organizations having sufficient capital can invest their money in production and commercial activities according to their interest , capability and knowledge.

\large{ \tt{✺ \: STUDY \: TIP}} :

  • FEED YOUR BRAIN : Foods like apples , walnuts and blueberries can improve your ability to focus , retain information and remain mentally alert. ♪

ツ Hope I helped! ♡

☼ Have a wonderful day / evening ! ☪

# StayInAndExplore ! ☂

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3 0
3 years ago
Helio Company has two products: A and B. The annual production and sales of Product A is 1,850 units and of Product B is 1,250 u
iren2701 [21]

Answer:

Estimated manufacturing overhead rate= $77 per direct labor hour

Explanation:

Giving the following information:

Production:

Product A: 1,850 units

Product B: 1,250

Hours required:

Product A: requires 0.3 direct labor-hours per unit

Product B: requires 0.6 direct labor-hours per unit.

The total estimated overhead for the next period is $100,485.

First, we need to calculate the total amount of direct labor hours required:

Total direct labor hours= 0.3*1,850 + 0.6*1,250= 1,305 hour

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 100,485/1,305= $77 per direct labor hour

4 0
3 years ago
What to put on a job application for education if still in high school?
almond37 [142]
You could put that you are still in high school and working towards your high school diploma. 
8 0
3 years ago
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