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ira [324]
2 years ago
13

A stock is expected to pay $ 1.10 per share every year indefinitely and the equity cost of capital for the company is 8.4​%. Wha

t price would an investor be expected to pay per share ten years in the​ future?
Business
1 answer:
Marina CMI [18]2 years ago
5 0

Answer:

$13.06

Explanation:

Data provided in the question

Expected dividend pay every year  = $1.10

And the equity cost of capital is 8.4%

So, the price expected to pay per share ten years in future is

= Expected dividend pay every year ÷ the equity cost of capital

= $1.10 ÷ 8.4%

= $13.06

By dividing the expected dividend by the equity cost of capital we can get the price

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Answer and Explanation:

The computation is shown below:

1.

Direct Material Price Variance = Actual material cost - Actual Quantity × Standard Price

For Silver

= $13848 - 577 × 23

= $577 (U)

For Crystal

= $2926 - 7700 × 0.40

= $154 (F)

Direct Material Quantity Variance = (Actual Quantity - Standard Quantity) × Standard Price

For Silver

= (577 - 1530 × 0.40) × 23

= $805 (F)

For Crystal

= (7700 - 1530 × 5) × 0.40

= $20 (U)

2.

Direct Labor Rate Variance = Actual Cost - Actual Hours × Standard Rate

= $36915 - 3210 × 12

= $1605 (F)

And,

Direct Labor efficiency Variance = (Actual hours - Standard hours) × Standard Rate

= (3210 - 1530 × 2) × 12

= $1800 (U)

6 0
2 years ago
What is capital market?
goblinko [34]
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5 0
3 years ago
The point at which birth and death rates balance is called
yawa3891 [41]

Answer:

B balancing growth

Explanation:

4 0
2 years ago
If a student identifies herself as having strong writing skills and an interest in working on her own, which of the following mi
Mekhanik [1.2K]
She could try becoming an author, they write in magazines, newpapers, books, and articles. She could write what she wishes and it's on her own.
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3 years ago
Read 2 more answers
Paving LLC is a foreign limited liability company in the state of Ohio. In dealing with Paving, Ohio will apply the law of the s
k0ka [10]

Answer: B. Was formed

Explanation:

Limited liability companies that are doing business in the states other than the states that they registered originally may have to seek the status of foreign LLC in such states.

Therefore, since Paving LLC is a foreign limited liability company in the state of Ohio. In dealing with Paving, Ohio will apply the law of the state where the firm was formed. Therefore, the correct option is B.

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2 years ago
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