Answer:
The maximum price that should be paid for one share of this stock today is $46.86
Explanation:
Using the dividend discount model, we can calculate the price/fair value of the stock today. The DDM bases the price of the stock on the present value of the expected future inflows from the stock in the form of dividends and terminal value. The discount rate used to discount the cash flows is the cost of equity or required rate of return on stock.
The price of this stock at time zero (t=0) will be,
Prcie = 2 / (1+0.08) + 2.5 / (1+0.08)^2 + 50 / (1+0.08)^2
Price = $46.86
Answer:
C. completed from beginning inventory, started and completed during the month, and units in ending inventory
Explanation:
During the period, the work done is:
the last part of the beginning WIP
If BI is at 40% complete
During the period 60% is assign to this period cost
the started and complete, those count entirely, as they are finished.
and the equivalent work of the endind inventory
this is also work done during the period, so it should be accounted to assing cost into.
Answer:
$52,800
Explanation:
The computation of the increase or decrease in net income is shown below:
Particulars Reject Accept net income or decrease
Revenue
(6,000 × $30) $198,000 $198,000
Less:
Cost
($6,600 × ($21 + $1) $145,200 -$145,200
Net $52,800 $52,800
Since the amount comes in positive so the spcial order should be accepted
Answer:
$23.33
Explanation:
Calculation for the Dividend yield for Baldwin
Using this formula
Dividend yield = Dividend per share + Increase in Dividend
Let plug in the formula
Dividend yield = $19.69+$3.64
Dividend yield =$23.22
Therefore the Dividend yield will be $23.22
Answer:
=8.8%
Explanation:
ROI is return on investments. It is calculated by the formula below.
ROI = net gains/ invested capital x 100
net gains in this case will be
Dividends = $74.06
Appreciation in price = ($61.50 x 25) - ($59.25 x 25)
=$1,537.5 - $1,481.25
=56.25
Total gain = $56.25 + $74.06
=$130.31
ROI = $130.31/1,481.25 x100
ROI= 0.087972 x 100
=8.79
=8.8%
