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Naddika [18.5K]
2 years ago
12

The Jackson–Timberlake Wardrobe Co. just paid a dividend of $1.60 per share on its stock. The dividends are expected to grow at

a constant rate of 6 percent per year indefinitely. Investors require a return of 10 percent on the company's stock. What is the current stock price? What will the stock price be in three years? What will the stock price be in 12 years?
Business
1 answer:
Verizon [17]2 years ago
6 0

Answer:

(1)$42.4 (2)$50.50 (3)$85.32

Explanation:

Solution

Given that:

(1) The current stock price is computed below:

Stock price, P0 = D1÷(r-g)

Where

D₁ = the next dividend expected

r = the return required

g = he growth rate

Thus

= $1.60×(1+6%)/(10%-6%)

$42.4

(2) The formula for the stock price in three years  is given below:

Stock price, P3= D4÷(r-g)

Here

D₁ = the next dividend expected

r = the return required

g = he growth rate

= $1.60×[(1+6%)^4]/(10%-6%)

= $50.50

(3) Now we determine the price of the stock in 12 years

P12 = D13÷(r-g)

Here

D₁ = the next dividend expected

r = the return required

g = the growth rate

= $1.60×[(1+6%)^13]/(10%-6%)

= $85.32

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The following data relate to labor cost for production of 22,000 cellular telephones:
Anuta_ua [19.1K]

Answer:

Results are below.

Explanation:

Giving the following information:

Production= 22,000 units

Actual: 4,220 hrs. at $44.50

Standard: 4,160 hrs. at $46.00

<u>To calculate the direct labor time and rate variance, we need to use the following formula:</u>

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Direct labor time (efficiency) variance= (4,160 - 4,220)*46

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Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

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Answer:

a. estimate the amount to mitigate high impact and probable issues.

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A contingency is an amount of money which is added to the initial or standard cost estimate so as to cover risk exposure and any uncertainty.

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