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disa [49]
3 years ago
12

you believe that the Non-stick Gum factory will pay a dividend of $2 on its common stock next year. Thereafter, you expect divid

ends to grow at the rate of 6% a year in perpetuity. If you require a return of 12% on your investment, how much should you be prepared to pay for the stock?
Business
1 answer:
Svetlanka [38]3 years ago
6 0

Answer:

You should pay a stock price of $33.33

Explanation:

We can use the formula below to calculate the price per share that you would be willing to pay;

RRR=(EDP/SP)+EDGR

where;

RRR-required rate of return

EDP-expected dividend payments

SP-share price

EDGR-expected dividend growth rate

This can also be written as;

Required rate of return=(Expected dividend payments/share price)+expected dividend growth rate

In our case;

RRR=12%=12/100=0.12

EDP=$2

SP=unknown

EDGR=6%=6/100=0.06

replacing;

0.12=(2/SP)+(0.06)

0.12-0.06=(2/SP)

0.06=(2/SP)

0.06 SP=2

SP=2/0.06

SP=33.33

You should pay a stock price of $33.33

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Holliman Corp. has current liabilities of $407,000, a quick ratio of 1.90, inventory turnover of 4.50, and a current ratio of 3.
Sati [7]

Answer:

Cost of goods will be $4670325

Explanation:

We have given current liabilities = $407000

A quick ratio = 1.90

Current ratio is 3.40 and inventory turnover = 4.50

We know that current ratio is the ratio of current assets and current liabilities

So 3.4=\frac{current\ assets}{current\ liabilities}

So current assets = $1383800

Now quick ratio is equal to = \frac{current\ assets-inventory}{curtrent\ liabilities}

So 0.85=\frac{1383800-inventory}{407000}\\

Inventory = $1037850

Inventory turnover is given 4.5

So 4.5=\frac{cost\ of\ goods\ sold}{average\ inventory}

4.5=\frac{cost\ of\ goods\ sold}{1037850}

So cost of goods sold = 4.5×$1037850 = $4670325

5 0
3 years ago
Social security and medicare are?
mart [117]

Answer:

I believe it is progressive taxes.

Explanation:

Taxes under the Federal Insurance Contributions Act (FICA) are composed of the old-age, survivors, and disability insurance taxes, also known as social security taxes, and the hospital insurance tax, also known as Medicare taxes.

3 0
3 years ago
From an Associated Press article on Venezuela dated January 22, 2008: "... troops are cracking down on the smuggling of food ...
Sunny_sXe [5.5K]

Answer:

C. Letter C; demand exceeds supply, resulting in a shortage

Explanation:

I had put my answer as A on the test and got it wrong. But this is the correct answer C.

5 0
3 years ago
Alysha Johnson is a manager who communicates effectively, successfully motivates and leads her workers, and allows them leeway i
Alexeev081 [22]

Answer: strategic techniques

Explanation:

Alysha Johnson is a manager who communicates effectively, successfully motivates and leads her workers, and allows them leeway in making decisions. Copeland is said to have good strategic techniques.

Strategic management techniques is necessary for organizations as it helps them plan and also implement projects in a.way that the company's mission and goals.will be achievable. Copeland is utilizing this technique well as he communicates with the workers so that company's goals can be achieved.

8 0
3 years ago
Army Crew Team Case study required questions: Why does the Varsity team lose to the JV team? What should Coach P. have done diff
bagirrra123 [75]

Answer:1. The reason that the varsity team lost to JV team is lack of working together as a team.

2.Coach P. when selecting the rowers for the two teams should have looked at both the psychological(personality types and traits, if they are leader or followers etc.) as well as the physical aspect ( Stamina, Speed ,Coordination, Strength etc.) of each individual.

explanation:

1:Even though the varsity team consisted of the best individuals for speed , strength, coordination and endurance, they lacked the cohesiveness to perform as a unit. Each of the eight individual rowers had to be single-mindedly attuned to one another in order to synchronize their rowing and perform in unison. Unfortunately, the team also too many disruptor and lacked a leader.

2:The Coach should have experimented more by creating different scenarios to see how well the individuals responded and performed to one another in different situations when it came to a team environment. For example, putting the rowers in total control of the team's dynamics is the best hands on lesson they could ever experience. This would have allowed the rowers a deeper understanding what it take to be winner from a loser.

3.Coach P. should switch both the teams for Tuesday since after extensive observations and evaluation he has witnessed JV work as a better team. The JV team possessed better synergy, synchronization, and shared a common goal causing them to win more frequently than the Varsity team, despite the fact that the Varsity team had better individual members. In addition, there has been a precedent for switching boats. During the mid-1990’s, the Cornell Coach faced asimilar situation as Coach P. and as a result of him making the switch, both the JV and Varsity teams ended up winning the Eastern Championships. This demonstrates that it is more likely thatthe teams will win if they agree to switch. Moreover, even if Coach P. decided not to switch the teams, it would have taken quite a while to rebuild Varsity’s team structure, morale, and overall team synergy, implying that they probably would not have been ready in time to compete and win the race as the Varsity team anyway.

3 0
4 years ago
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