1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Natasha2012 [34]
3 years ago
14

Beaksley, Inc. is a very cyclical type of business which is reflected in its dividend policy. The firm pays a $2.00 a share divi

dend every other year with a payment being paid today. Five years from now, the company is repurchasing all of the outstanding shares at a price of $50 a share. What is the current value of one share at a discount rate of 12 percent?
Business
1 answer:
taurus [48]3 years ago
3 0

Answer:

$31.24 is the current value of one share at a discount rate of 12 percent

Explanation:

Price today = [PVF 12%, 2 *d2]+[PVF12%,4 ] + [PVF 12%, 5 * P]

             =[.79719* 2 ] +[.63552*2] + [ .56743*50]

             = 1.5944+ 1.2710+ 28.37

             = 31.24

You might be interested in
The city of New Orleans has 200 advertising companies, 199 of which employ designers of normal ability at a salary of $100,000 a
zepelin [54]

Answer:

a. $700,000

b. 6/7 or 85.7%

c. No they will not.

Explanation:

a. Jacobs will earn the normal salary that the other designers in the other companies are getting in addition to the incremental income he brings to the company as a result of his talents.

Incremental income = Revenue with Jacobs - Revenue without Jacobs

= 1,000,000 - 400,000

= $600,000

Jacobs earnings = Normal designer earnings + incremental income

= 100,000 + 600,000

= $700,000

b. Economic rent is the excess amount that the company is paying Jacobs over what it should normally cost to get a designer.

Normal cost of designer is $100,000. Company is therefore paying an economic rent of $600,000.

Proportion of Jacobs salary that is economic rent = \frac{Economic rent}{Jacobs annual earning}

= \frac{600,000}{700,000}

= 6/7 or 85.7%

c. The company hiring Jacobs will not be making an economic profit because for them to make an economic profit they would have to be making more than the $400,000 that the other firms make. They cannot make this amount because for them to do so they would have to reduce the amount they pay Jacobs. If they do so, Jacobs would leave for greener pastures and then they would be making the same $400,000 that the rest are making.

8 0
3 years ago
Advertising can play a major role in ____________and promoting cultural norms, which has drawn criticism from advocacy groups ar
trapecia [35]

Answer:

C) propagating certain cultural stereotypes

Explanation:

This is true not only for advertising but also for many mass media products. The problem is that sometimes reality is very different than the stereotypes that are portrayed.

One of the most controversial issues is the models' weight. Models tend to be usually much thinner than regular people, and that leads to a misconception that being extremely thin is good and healthy. Besides personal beauty preferences, a girl who is 5 foot 10 and weighs only 100 pounds is not healthy.

Similar issues like portraying certain family or lifestyle stereotypes may also have positive or negative effects on the audience since advertisement reaches millions of people.

3 0
3 years ago
Help me please :( Why is being an operations manager more complicated than it used to be?
Furkat [3]

Answer:

C

Explanation:

Now, you can get anything from anywhere.

Hope this helps!

3 0
2 years ago
Guysss i need helpppp<br> what color is a carrot plzzzzzz this teacher is on my a.ss about it
Fed [463]

Answer:

BLUE Hope this helps :)))))

Explanation:

............

7 0
3 years ago
Read 2 more answers
On September 1, 2017 Magna Highend Vehicles a New York based sole proprietorship needed funds to expand to New Jersey and Connec
Veseljchak [2.6K]

Answer:

a) Journal Entries for 2017: Magna Highend Vehicles

October 3, 2017:

Debit Building with $800,000

Credit Preferred Stock with $750,000

Credit Share Premium (Preferred Stock) with $50,000

Being issue of 15,000 preferred stock in exchange for building.

November 8, 2017:

Debit Cash with $350,000

Credit Preferred Stock with $250,000

Credit Share Premium (Preferred Stock) with $100,000

Being issue of 5,000 preferred stock in cash at $70 per share.

December 3, 2017:

Debit Cash with $750,000

Credit Common Stock with $25,000

Credit Share Premium with $725,000

Being issue of 50,000 common stock at $15 per share.

b) 2016 Journal Entries for QC Delila Catering:

March 1, 2016:

Debit Cash with $270,000

Credit Stock with $270,000

Being issue of 15,000 shares at $18 per share.

April 15, 2016:

Debit Legal Fee with $6,500

Debit Stock Discount with $43,500

Credit Stock with $50,000

Being issue of 5,000 shares worth $10 per share in settlement of a legal fee.

June 10, 2016:

Debit Cash with $550,000

Credit Stock with $550,000

Being issue of 25,000 shares at $22 per share.

Explanation:

Shares at be issued in exchange for cash or other assets, and even in settlement of a liability.

Some shares are issued at a discount while some are issued at a premium or at par.  A share issued at a discount means that the stock was sold for less than its market value or par value.  For example, the issue of stock worth $50,000 in settlement of a legal fee of $6,500.

Shares issued at a premium are sold for more than their par values.  The par value of a stock is the stated nominal value as against the market price.  Usually, if a stock is doing well in the market, the market price is more than the par value.

4 0
3 years ago
Other questions:
  • Cost Behavior; High-Low Method [LO2-4, LO2-5] Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The c
    12·1 answer
  • __________ is setting a price for products that must be used along with a main product, such as blades for a razor and games for
    10·1 answer
  • Western Company allocates $10.00 overhead to each unit produced. The company uses a plantwide overhead rate with machine hours a
    14·1 answer
  • Folsom Advertising, Inc. is considering an investment in a new information system. The new system requires an investment of $1,8
    12·1 answer
  • Your uncle has $340,000 invested at 7.5%, and he now wants to retire. He wants to withdraw $35,000 at the end of each year, star
    13·1 answer
  • During 2015, LeBron Corporation accepts the following notes receivable.a. On April 1, LeBron provides services to a customer on
    5·1 answer
  • Jerry, a partner with 30 percent capital and profits interest, received his Schedule K-1 from Plush Pillows, LP. At the beginnin
    15·1 answer
  • on december 31 of last year, wolfson corporation had in inventory 450 units of its product, which costs $22 per unit to produce.
    14·1 answer
  • In a monopoly:_________.
    15·1 answer
  • What is the price of a coupon bond that has annual coupon payments of $75, a face value of $1000, interest rate of 5%, and a mat
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!