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andre [41]
3 years ago
11

Zephyr Electricals is a company with no growth potential. Its last dividend payment was $4.50, and it expects no change in futur

e dividends. What is the current price of the company’s stock given a discount rate of 9 percent?
Business
1 answer:
VARVARA [1.3K]3 years ago
6 0

Answer: $50

Explanation:

We can use the Gordon Growth Model of Stock Valuation. The formula is thus,

P = D1 / r – g

D1 = the annual expected dividend of the next year

r = rate of return

g = the expected dividend growth rate (assumed to be constant)

There is no growth potential and dividends are expected to stay the same so no growth rate and D1 will be the same as D0.

Plugging that into the formula therefore will give us

P = D1/r

P= 4.5/0.09

= $50

Current Stock Price is $50.

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It costs Waterway Industries $28 of variable costs and $14.40 of allocated fixed costs to produce an industrial trash can that s
Georgia [21]

Answer:

Special request income 33,000

Explanation:

special request:

3000 units x $39 = 117,000

variable cost:

3000 units x $28 = 84,000

<u>Contribution margin 33,000</u>

special cost:              <em>none</em>

additional fixed cost:   <em>none</em>

Special request income 33,000

Notice:

Non additional shipping or setup cost is request for the order.

Non increase in fixed cost due to excess capacity.

If any of this concept do inccur in additional cost, it should be relevant as well in the calculations.

7 0
3 years ago
Last year Electric Autos had sales of $100 million and assets at the start of the year of $150 million. If its return on start-o
kvv77 [185]

Answer:

22.50%

Explanation:

Amount of return on asset = Rate of return * Asset value

Amount of return on asset = 15% * $150 million

Amount of return on asset = $22.5 million

Operating profit margin = Amount of return on asset / Sales

Operating profit margin = $22.5 million / $100 million

Operating profit margin = 0.225

Operating profit margin = 22.50%

8 0
3 years ago
Suppose a firm currently produces 325 units of output per day with 15 workers. the firm is able to produce 340 units of output w
Vinvika [58]

MPL implies the extra output level, that is being produced by hiring an additional unit of labor.

So when the 16th worker is hired, the output level rises by = (340-325)

= 15 units.

In science education, a word problem is a mathematical exercise (including in a textbook, worksheet, or exam) wherein sizeable background statistics on the problem is offered in everyday language as opposed to in mathematical notation. As most phrase issues contain a narrative of a few sorts, they may be every now and then referred to as story issues and might range in the amount of technical language used.

To clear up trouble like this by algebra, one interprets the phrases into a gadget of equations, expressing the usage of mathematical variables and operations. For this problem, it's far more convenient to work out the solution first in minutes, and then convert it to hours.

Learn more about word problems here: brainly.com/question/1781657

#SPJ4

7 0
2 years ago
Is my answer correct <br> Im not really sure
Harlamova29_29 [7]

I'm sure it's true. A small business can thrive

5 0
4 years ago
Supply chain execution systems provide all of the following functions except:
Elenna [48]

Answer:

tracking the flow of finished goods

7 0
3 years ago
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