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nignag [31]
3 years ago
13

Hardwoods, Inc. is a mature manufacturing firm. The company just paid a $10 dividend, but management expects to reduce the payou

t by 9 percent each year, indefinitely. How much are you willing to pay today per share to buy this stock if you require a 15 percent rate of return
Business
2 answers:
harkovskaia [24]3 years ago
7 0

Answer:

$37.92 is the answer

Explanation:

Stock price, P0 = D1÷(r+g)

D1 is next expected dividend

r is required return

g is growth rate

= $10×(1-9%)÷(15%+9%)

= $37.92

OlgaM077 [116]3 years ago
5 0

Answer:

$37.92

Explanation:

D0 = $10

g = -9% it is negative since the payout will be reduced indefinitely

r =15%

P = ?

dividend discount model

P = D1/r-g

  = 10 (1+(-0.09))/0.15-(-0.09)

   =$37.9167/$37.92

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Lindo Company incurs annual fixed costs of $80,000. Variable costs for Lindo’s product are $40 per unit, and the sales price is
riadik2000 [5.3K]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Lindo Company incurs annual fixed costs of $80,000. Variable costs for Lindo’s product are $40 per unit, and the sales price is $64 per unit. Lindo desires to earn an annual profit of $40,000.

To calculate the sales in volume and dollars we need to use the break-even formula:

Break-even point (units)= (fixed costs + profit)/ contribution margin

Break-even point (units)= (80,000 + 40,000) / (64 - 40)= 5,000 units

Break-even point (dollars)= (fixed costs + profit)/ contribution margin ratio

Break-even point (dollars)= 120,000 / (24/64)= $320,000

6 0
3 years ago
Mary Kay Cosmetics and Amway sell their products through home and office sales parties, online websites, and social media. Both
Sphinxa [80]

Answer:

Direct channel

Explanation:

A channel of distribution (also known as marketing channel) involves a group of interdependent organizations who work together to make a product or service available for use or consumption, as well as providing a means of payment to the provider.

A direct channel of distribution is a type of distribution in which product and services are made readily to the consumer by the producers without using any intermediaries.

6 0
3 years ago
Why do some companies use travel agents to set up their travel arrangements?
Sergio [31]
It is more convenient to use travel agents to set up their travel arrangements due to busy and conflicting schedules of business people. Agents will also do everything for you to meet your travel needs. Travel agents know more than you do. They also have access to benefits you can't get otherwise. After you planned everything, they provide a safety net for your trip that you wont simply won't get by booking yourself or buying insurance.
5 0
4 years ago
In determining whether to issue a loan, banks are not allowed to ask about an applicant's
Firlakuza [10]

Answer:

country of origin.

Explanation:

Banks have a set of requirements that borrowers need to meet to qualify for a bank loan. The banks will ask questions to determine if the customer is eligible for a loan. Most of the questions pertain to the purpose of the loans and the customer's ability to repay.

The bank will ask about employment history, credit history, tax information, personal information, the purpose of the loan,  collateral, and other questions related to the ability to repay. A person's country of origin is unnecessary and may elicit elements of discrimination.

3 0
3 years ago
Read 2 more answers
Natalia worked in an automobile plant. she lost her job when the plant relocated to another state.
Agata [3.3K]

Answer:

$400.65

Explanation:

Natalia's last 26 weekly salaries:

Week Salary

1 715

2 700

3 730

4 730

5 730

6 720

7 700

8 720

9 720

10 720

11 725

12 720

13 725

14 730

15 730

16 735

17 735

18 735

19 740

20 740

21 740

22 740

23 740

24 740

25 740

26 740

The total compensation for the last 26 weeks = $18,940

her average weekly salary = $18,940 / 26 = $728.46

her unemployment compensation = average weekly salary x 55% = $728.46 x 55% = $400.65

6 0
3 years ago
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