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dedylja [7]
3 years ago
13

just paid $2.55 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be

increasing by 5.5 percent. If you require a rate of return of 9.7 percent, how much are you willing to pay today to purchase one share of the company's stock?
Business
1 answer:
babymother [125]3 years ago
8 0

Answer:

$64.04.

Explanation:

P0 = [$2.55 (1 + 0.055) / (0.097 - 0.055)]

P0 = 2.69 / 0.042

P0 = $64.04.

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Third one - simpler and less expensive
5 0
3 years ago
On August 1, 2022, Burdick Co. issued bonds with a face value of $600,000. The bonds carry a stated interest rate of 8%; interes
xz_007 [3.2K]

Answer:

$620,000

Explanation:

the total cash received (dirty price) = clean price + accrued interest = (1.02 x $600,000) + ($600,000 x 8% x 2/12) = $612,000 + $8,000 = $620,000

the clean price of a bond refers to the price of the bond without any type of accrued interest, i.e. the price that the issuer would receive if it sold them at the same date that they were issued.

The dirty price includes both the clean price plus any accrued interest

4 0
3 years ago
When comparing the difference between an upstream and downstream transfer of inventory, and using the initial value method, whic
scZoUnD [109]

Answer:

a. Income from subsidiary will be lower by the amount of the ending inventory profit multiplied by the noncontolling interest percentage for downstream transfers.

Explanation:

When we transfer inventory from subsidiary to holding there will be some profit element included in cost. so when we consolidate the account of subsidiary to its holding at the time of reporting we should removed that unrealised profit included in the inventory.

6 0
3 years ago
Sutton Enterprises makes gadgets using a two-step process that involves machining and assembly, respectively. During the period,
MaRussiya [10]

Answer:

Total equivalent units= 11,890

Explanation:

Giving the following information:

Assembly Department completes 10,200 gadgets and transfers them to Finished Goods Inventory.

The Assembly Department has 2,600 gadgets in the process that are 65% complete for conversion.

<u>To calculate the equivalent units, we need to multiply the % complete for the number of units started:</u>

Units completed= 10,200

Units in ending inventory= 2,600*0.65= 1,690

Total equivalent units= 11,890

5 0
3 years ago
A select list of transactions for Anuradha's Goals follows:
umka2103 [35]

Answer:

April 1. Paid six months of rent, $4,800

Requires Deferred expense-type of adjusting entry

April 10. Received $1,200 from customer for six month service contract that began April 1.

Requires Deferred revenue-type of adjusting entry

April 15. Purchased a computer for $1,000.

Requires Deferred expense-type of adjusting entry

April 18. Purchased $300 of office supplies on account

Requires Deferred expense-type of adjusting entry

April 30. Work performed but not yet billed to customer, $500

Requires Accrued revenue-type of adjusting entry

April 30. Employees earned $600 in salaries that will be paid May 2.

Requires Accrued expenses-type of adjusting entry

7 0
3 years ago
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