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Alinara [238K]
3 years ago
13

The Starr Co. just paid a dividend of $1.85 per share on its stock. The dividends are expected to grow at a constant rate of 4 p

ercent per year, indefinitely. Investors require a return of 12 percent on the stock.What is the current price?
What will be the price in three years?
What will be the price in 14 years?
Business
1 answer:
Natasha2012 [34]3 years ago
7 0

Answer:

Explanation:

Last dividend = $1.85 (D0)

growth rate = 4% (g)

Current year dividend (D1) = 1.85*(1+0.04) = $1.924

r = 12%

Current price = D1/(r-g) = 1.924/(0.12-0.04) = 24.05

Price in 3 years = D4/(r-g) = D0*(1+g)^4/(r-g) = 1.85*1.04^4/0.08 = $27.0529792

Price in 14 years = D14/(r-g) = D0*(1+g)^15/(r-g) = 1.85*1.04^15/0.08 = $41.647

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A company had beginning inventory of 11 units at a cost of $17 each on March 1. On March 2, it purchased 11 units at $28 each. O
aliina [53]

Answer:

$583

Explanation:

Under the FIFO method, we considered the first unit first comes out

The computation of the cost of units sold for 26 units is shown below:

The 26 units are taken from

11 units at $17 each, 11 units at $28 each and the remaining 4 units i.e 26 units - 22 units taken at $22 each

So,

= 11 units × $17 + 11 units × $28 + 4 units × $22

= $187 + $308 + $88

= $583

7 0
3 years ago
The payroll register for D. Salah Company for the week ended May 18 indicated the following:
Tema [17]

Answer:

a. May 18

Dr Salaries expense $615000

Cr Social security tax payable $36900

Cr Medicare tax payable $9225

Cr Employment federal income tax payable $165000

Cr Salaries payable $403875

b. May 18

Dr Payroll tax expenses $48915

Cr Social security tax payable $36900

Cr Medicare tax payable $9225

Cr State unemployment taxes payable $2430

Cr Federal unemployment taxes payable $360

Explanation:

a. Preparation of the journal entry to record the payroll for the week of May 18.

May 18

Dr Salaries expense $615000

Cr Social security tax payable $36900

(615000*6%)

Cr Medicare tax payable $9225

(615000*1.5%)

Cr Employment federal income tax payable $165000

Cr Salaries payable $403875

($615000-$36900-$9225-$165000)

(To record the payroll for the week of May 18)

b. Preparation of the journal entry to record the payroll tax expense incurred for the week of May 18.

May 18

Dr Payroll tax expenses $48915

($36,900+$9225+$2430+$360)

Cr Social security tax payable $36,900 (615000*6%)

Cr Medicare tax payable $9225

(615000*1.5%)

Cr State unemployment taxes payable $2430 (45000*5.4%)

Cr Federal unemployment taxes payable $360 (45000*0.8%)

(To record the payroll tax expense incurred for the week of May 18)

8 0
2 years ago
Maria has to choose between driving and taking a train to destination A. Travelling by train will cost her $400 and will take 4
dlinn [17]

Answer:

None of the options are correct

Explanation:

The train would cost her, which is computed as:

= Cost + (Hours × Opportunity Cost)

= $400 + (4 hours × $15 per hour)

= $400 + $60

= $460

The driving would cost her, which is computed as:

= Cost + (Hours × Opportunity Cost)

= $250 + (6 hours × $15 per hour)

= $250 + $90

= $340

Savings = Train Cost - Driving Cost

= $460 - $340

=$120

None of the options are correct as the she would save $120.

4 0
3 years ago
The Omega Corporation has some excess cash it would like to invest in marketable securities for a long-term hold. Its Vice-Presi
Leokris [45]

Answer:1

Explanation:

4 0
2 years ago
Which of the following personal property items has the HIGHEST specific limitation on coverage?
Charra [1.4K]

The personal property items that have the HIGHEST specific limitation on coverage are jewelry, watches, and precious stones or metals because they are saved in a location, especially in banks

<h3 /><h3>The properties having HIGHEST specific limitation on coverage.</h3>

A limit is the highest amount your insurer will pay for a claim that your insurance policy covers.

Some of these specific limits apply to a building or personal property at a single location.

From the listed option, the personal property items that have the HIGHEST specific limitation on coverage are jewelry, watches, and precious stones or metals because they are saved in a location, especially in banks

Learn more on specific limitations on coverage here: brainly.com/question/27015627

8 0
2 years ago
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