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tensa zangetsu [6.8K]
2 years ago
15

Corporation's stock has a required rate of return of 10.25%, and it sells for $57.50 per share. The dividend is expected to grow

at a constant rate of 6.00% per year. What is the expected year-end dividend, D1?
Business
1 answer:
Rudik [331]2 years ago
6 0

Answer:

$6.25 (rounded off)

Explanation:

In this case we first have to find the most recent dividend and then multiply is by (1+Growth rate) in order to find year end dividend. The price of the stock currently is $57.50 and the required rate of return is 10.25% so we can assume that the most recent dividend of the stock was 10.25% of 57.5

Recent dividend = 57.50 *0.1025= 5.89

Year end dividend = Recent dividend *(1 +growth rate)

                            =5.89*(1+0.06)

                             = 6.247

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What do you see as the major deficiencies current information systems budgeting and prioritization processes are run
monitta

Answer:  

The major challenges with the current information systems budgeting and prioritisation process are:

  1. The focus was overly on how the budgeted monies will be spent and how much return it will bring to the business. Not much thought was given to how the monies required for the expenses will be generated. Budgeting not only looks at the outflow, it examines existing and potential sources of income/revenue. When this is balanced, the company can integrate such into their marketing strategy armed with what information about the market that they possess.
  2. The prioritization is all wrong. Budgeting is because there is are organisational objectives to be met with limited resources.

Because those resources are limited, the said objectives have to be prioritized. Income-generating projects must hold more priority over non-revenue generating activities.

If there is a strategic link between the company's Information Systems upgrade and an increase in its bottom line, then it must be given priority.

Cheers!

5 0
2 years ago
Young Company budgets sales of $112,900,000, fixed costs of $25,000,000, and variable costs of $66,611,000. What is the contribu
xenn [34]

Answer:

41 percent

Explanation:

Given : Budgeted Sales $112,900,000

            Fixed Costs $25,000,000

            Variable Costs $66,611,000

Contribution margin =  Net Sales - Variable costs

                                  = $112,900,000 - $66,611,000

                                  = $ 46,289,000

Contribution Margin Ratio = \frac{Contribution\ Margin}{Net\ Sales}  = \frac{46289000}{112900000} =  41%

Contribution margin ratio indicates the percentage of sales remaining so as to cover a firm's fixed expenses. It also represents how much percentage of sales is required to cover the variable costs.

It is also expressed as , 100 - Variable cost ratio (in percentage)

6 0
3 years ago
On January 1, 2009, Diego owed $14,033 to his friend Ricardo, who was kind enough not to charge Diego any interest. Each month d
aleksandrvk [35]

Answer:

$481

Explanation:

Amount paid = Amount lent - Amount left

Amount paid = $14,033 - $8,261

Amount paid = $5,772

Average amount paid each month = Amount paid / Number of months

Average amount paid each month = $5,772 / 12

Average amount paid each month = $481

So, the average amount of Diego's monthly payments is $481.

6 0
2 years ago
Project A requires a $280,000 initial investment for new machinery with a five-year life and a salvage value of $30,000. The com
solong [7]

Answer:

4 years

Explanation:

Payback period is the time in which a project returns back the initial investment in the form of net cash flow.

Initial Investment = $280,000

Net Income = $20,000

To calculate the net cash flows add bask the depreciation expense in Net income each year.

Depreciation = ($280,000 - $30,000) / 5 = $50,000

Net Cash Flow = $20,000 + $50,000 = $70,000

Payback period = Initial Investment / yearly cash flow = $280,000 / $70,000 = 4 years

5 0
3 years ago
"helen is a u.s. citizen and cpa, who moved to london, england three years ago to work for a british company. this year, she spe
balu736 [363]

<u>Answer:</u>

<em>Exclusion upto  $103,900. Taxable amount is $6100.</em>

<u>Explanation:</u>

<em>US natives</em>, just as changeless occupants, are required to document ostracize expense forms with the government consistently paying little mind to where they dwell.

Alongside the <em>common assessment</em> form for money, numerous individuals are likewise required to present an arrival revealing resources which are held in ledgers in remote nations. Notwithstanding where you live, you should record <em>expat imposes in the US.</em>

3 0
3 years ago
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