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sasho [114]
3 years ago
14

stock has a required rate of return of 10.25%, and it sells for $57.50 per share. The dividend is expected to grow at a constant

rate of 6.00% per year. What is the expected year-end dividend, D1? a. $2.20 b. $2.69 c. $2.96 d. $2.44 e. $3.25
Business
2 answers:
elena-s [515]3 years ago
7 0

Answer:

D; $2.44

Explanation:

In this question, we are asked to calculate expected year-end dividend D1 for a particular stock.

Mathematically,

Current stock price = Expected year end dividend/(Required return rate - growth rate)

Using the information in the question, we identify the following;

Current stock price = $57.50

Expected year end dividend = ?

Required return rate = 10.25%(0.1025)

Growth rate = 6%(0.06)

We can rewrite the equation as ;

Expected year end dividend = Current stock price * (Required return rate - Growth rate)

= 57.5 * (0.1025 - 0.06) = 57.5 * 0.0425 = $2.44375

Hence, the expected year-end dividend D1 = $2.44

Ivan3 years ago
7 0

Answer: D. $2.44

Explanation:

GIVEN the following ;

Required rate of return (r) = 10.25% = 0.125

Price of share (P0) = $57.50

Growth rate = 6% = 0.06

Expected year end dividend(D1)

Price of stock(P0):

= Dividend (D1) ÷ ( rate of return - growrh rate)

$57.50 = (D1) ÷ (0.1025 - 0.06)

$57.50 = D1 / 0.0425

D1 = $57.50 × 0.0475

D1 = $2.44375

Therefore, expected year-end dividend = $2.44

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The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. The fini
saveliy_v [14]

Answer:

Production for 2nd Quarter = 15,000  units

Explanation:

given data

ending inventory of finished goods = 25 %

finished goods inventory at year start =  4,000 units

so we consider here Quarter sales in unit  

1 = 12,000

2 = 14,000

3 = 18,000

4 = 16,000

solution

we get here Production for 2nd Quarter  that is

Production for 2nd Quarter = Quarter 2 sale + Desired Q2 ending inventory - Beginning Q2 inventory  ...................1

so it will be as

Production for 2nd Quarter = Quarter 2 sale + (25% of Q3 Sale) - (25% of Q2 sale)

put here value

Production for 2nd Quarter = 14000 + (18000 × 25%) - (14000 × 25%)

Production for 2nd Quarter = 14000 + 4500 - 3500

Production for 2nd Quarter = 15,000  units

3 0
3 years ago
Drewson Health Foods has 16 comma 000 shares of $ 1 par common stock​ outstanding, which were issued at $ 15 per share. Drewson
earnstyle [38]

Answer:

SE 157,000

Explanation:

We do shares outstanding times issued per share to get the total paid-in capital. Then subtract the retained earnigns negative balance to get the Drewson total stockholders equity

16,000 \times 15 = 240,000 \\Retained \: Earnings \: (83,000) \\Stockholders \: Equity \: 157,000

7 0
3 years ago
Perform online research to find a car you would like to have. Find out how much it would cost to lease the vehicle, and how much
docker41 [41]

Answer:

The average lease payment for a new vehicle is just over $450 per month for a three-year lease, according to Experian's Q1 2019 State of the Automotive Finance Market report. That's about $100 less than the average monthly auto loan payment for a new car, which was $554.The average monthly payment on a new car was $523 in the first quarter of 2018, according to credit reporting agency Experian. But that's far from the true cost to own a car. For vehicles driven 15,000 miles a year, average car ownership costs were $8,469 a year, or about $706 a month, in 2017, according to AAA. The choice between buying and leasing has often been a tough call. On one hand, buying involves higher monthly costs, but you own something in the end. On the other, a lease has lower monthly payments, but you get into a cycle where you never stop paying for a vehicle.

Explanation:

7 0
3 years ago
Read 2 more answers
O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal annual, not semiannual yiel
kiruha [24]

Answer:

7.84%

Explanation:

Given:

Bond's par value (FV) = $1,000

Maturity (nper) = 25 × 2 = 50 periods (since it's semi-annual)

YTM (rate) = 0.0925÷2 = 0.04625 semi annually

Price of bond (PV) = $875

Calculate coupon payment (pmt) using spreadsheet function =pmt(rate,nper,-PV,FV)

PV is negative as it's a cash outflow.

So semi- annual coupon payment is $39.20

Annual coupon payment = 39.2×2 = $78.40

Nominal Coupon rate = Annual coupon payment ÷ Par value

                                     = 78.4 ÷ 1000

                                     = 0.0784 or 7.84%

4 0
3 years ago
New Coffee Company, LLC uses JIT (just-in-time) logistical supply methods. This indicates that the company doesn't really keep l
Leona [35]

Answer:

B) Inventory turnover ratios

Explanation:

Inventory turnover measures how many times a business sells and replaces its merchandise or materials inventory during an accounting period, usually a year.

One of the basic goals of JIT is to lower the total inventories in a company, therefore increasing the inventory turnover ratio. This reduces the company's operating costs.

4 0
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