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VikaD [51]
3 years ago
8

Hudson Corporation will pay a dividend of $2.82 per share next year. The company pledges to increase its dividend by 3 percent p

er year indefinitely. If you require a return of 10 percent on your investment, how much will you pay for the company’s stock today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Brilliant_brown [7]3 years ago
5 0

Answer:

An investor will be willing to pay $40.29 for this stock.

Explanation:

A constant growth dividend discount model will be used in this case because Hudson Corporation is expected to grow at a constant rate. The formula to be used is:

Price = Expected Dividend (Dividend of Year 1) / Required Return - Growth Rate

                                                          OR

Price = 2.82 / (.1 - .03) = 2.82 / .07 = $40.29.

Thanks!

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The correct answer is $5,000.

Explanation:

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Direct material = $89,000

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Direct labor = $122,000

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= $20,000

Additional actual manufacturing OH = $214,000

Applied manufacturing OH = $268,000

So, we can calculate the underapplied or overapplied overhead for the month by using following formula:

Underapplied or overapplied overhead = Applied manufacturing OH - Actual OH

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3 years ago
Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as neede
pantera1 [17]

Answer:

34.04%

Explanation:

Data provided :

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on substituting the values, we get

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andrew11 [14]

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c) removing barriers to trade

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The case mentions that deutsche telekom has invested heavily in huawei’s services because it came at a competitive price. Based
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As the deutsche telekom has invested heavily in huawei’s services because it came at a competitive price and based on what you know about how companies expand internationally, this would be an example of an <u>outsourcing</u>.

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