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Alexandra [31]
3 years ago
13

Rosita's announced that its next annual dividend will be $1.65 a share and all future dividends will increase by 2.5 percent ann

ually. What is the maximum amount you should pay to purchase a share of this stock if you require a 12 percent rate of return?
a. $17.37
b. $16.94
c. $17.80
d. $15.46
e. $13.75
Business
1 answer:
Leni [432]3 years ago
4 0

Answer:

$17.37

Explanation:

Rosita's made an announcement that the next annual dividend payment will be $1.65 per share

The dividend will increase by 2.5% annually

= 2.5/100

= 0.025

The rate of return is 12%

= 12/100

= 0.12

Therefore, the maximum amount that should be paid to purchase this stock can be calculated as follows

Po= $1.65/(0.12-0.025)

= $1.65/0.095

= $17.37

Hence the maximum amount that should be paid to purchase a share of the stock is $17.37

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Suppose that the external cost associated with chewing gum (sticky sidewalks) is 0.5 cents per packet chewed. Most economists wo
riadik2000 [5.3K]

Answer:

Doing nothing. Ignore small external costs because the cost of administering a chewing gum tax is likely large relative to the harm prevented

Explanation:

As in the given question it can be seen that the external cost that is attached with the chewing cume would not even a cent as it is only 0.5 cents. Here the value is negligible if the tax is t be charged on this than it would not generate any revenue instead of this the cost of administrative would become high

Therefore the first option is correct

7 0
3 years ago
Before month-end adjustments are made, the February 28 trialbalance of Bose's Enterprise contains revenue of $11,000 andexpenses
AleksAgata [21]

Answer:

$2,800      

Explanation:

<u>REVENUE</u>

Revenue                                                                       $11,000

Add:

B.    Revenue earned but not yet billed = $2,800

D. Unearned revenue noe earned         =<u> $2,500  </u>  <u>  $5,300   </u>

Total Adjusted Revenue                                             <u>  $16,300   </u>

<u>EXPENSES</u>

Expenses                                                                       $11,000

Add:

A.   Depreciation for February                  = $1,200.

C. Accrued interest expense                    =   $800    

E. Prepaid insurance                                  =<u>   $500     </u> <u> $2,500       </u>

Total Adjusted expenses                                               <u>  $13,500   </u>

Correct net income = Total Adjusted Revenue - Total Adjusted expenses  

                                 = $16,300 - $13,500

                                 = $2,800                              

6 0
3 years ago
If Vickers Company issues 5,000 shares of $5 par value common stock for $175,000, A. Paid-In Capital in Excess of Par will be cr
Sindrei [870]

Answer:

option A is correct

Paid-In Capital in Excess of Par will be credited for $150,000

Explanation:

Given data

share = 5000

share value = $5 / common stock

cash = $175000

to find out

find the option which is correct

solution

we know here we have cash value $175000

and

total common stock is = share × share value

total common stock  =5000 × 5

total common stock value is $25000

so paid capital in excess = cash - total common stock value

paid capital in excess = 175000 - 25000

paid capital in excess is $150000

so option A is correct

Paid-In Capital in Excess of Par will be credited for $150,000

4 0
3 years ago
The initial cost to rent a bike is 6$. each hour the bike is rented costs 1.50. connor is going to rent a bike an can spend at m
ki77a [65]
$6.00 + 1.50(x) ≤ $12.00
1.50 x ≤ $12 - 6
1.50 x ≤ 6
x = 6.00÷1.50
x= 4 hours
4 0
3 years ago
The arranging of experimental units or subjects into different groups so that the experimental units or subjects are similar to
icang [17]
Usually experiments are done by random assignment of the subjects or objects. This helps the study reduce bias and other potential threats to the credibility of the study. Thank you for your question. Please don't hesitate to ask in Brainly your queries. 
5 0
3 years ago
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