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pishuonlain [190]
3 years ago
10

Wyatt Oil presently pays no dividend. You anticipate Wyatt Oil will pay an annual dividend of $0.56 per share two years from tod

ay and you expect dividends to grow by 4% per year thereafter. IF Wyatt Oil's equity cost of capital is 12%, then the value of a share of Wyatt Oil today is:__________
Business
1 answer:
erastovalidia [21]3 years ago
5 0

Answer:

The value of a share of Wyatt Oil today is %6.25.

Explanation:

Value after of a share year 2 = (D2*Growth rate)/(Cost of capital-Growth rate)

                        = (0.56×1.04)/(0.12-0.04)

                       = $7.28  

the current value = Future dividends×Present value of discounting factor(12%,time period)

=0.56/[(1.12)^2] + 7.28/[(1.12)^2]

= $6.25

Therefore, the value of a share of Wyatt Oil today is %6.25.

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ratelena [41]

Answer: $14594

Explanation:

The budgeted selling expense for the manager for the month ended June 30 will be calculated thus:

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= [700 × (1 + 3%)]

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= 700 × 1.03

= 721 units

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2 years ago
The legal document identifying the rights and obligations of both the bondholders and the issuer is called the bond ______. This
V125BC [204]

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Therefore, the legal document identifying the rights and obligations of both the bondholders and the issuer is called the bond indenture. This document describes the number of bonds authorized, their par value, and the contract interest rate.

7 0
3 years ago
Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations: Number o
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$303

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= Direct materials per unit + Direct labor per unit + variable manufacturing overhead  per unit + Fixed manufacturing overhead per unit

= $149 + $112 + $7 + $35

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The Fixed manufacturing overhead per unit is measured below:

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6 0
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Gala2k [10]

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6 0
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