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Marianna [84]
3 years ago
9

The Red Bud Co. pays a constant dividend of $1.80 a share. The company announced today that it will continue to do this for anot

her 2 years after which time they will discontinue paying dividends permanently. What is one share of this stock worth today if the required rate of return is 7.4 percent?
Business
1 answer:
Naddika [18.5K]3 years ago
8 0

Answer:

One share of this stock worth today if the required rate of return is 7.4 percent is $ 3.24

Explanation:

According to the details the dividend for the next 2 years = $1.80 a share and the required return is=7.40%.

Hence to calculate current price of stock we have to use the following formula:

current price= present value of future cash flows

current price=$1.80/1.074 + $1.80/1.074∧2

current price= $ 3.24

current price of stock is $ 3.24

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XOLO Ltd. sold its stocks at a face value of $10. The stocks presently have a market value of $45. The earning per share (EPS) i
miss Akunina [59]

Answer: C

Explanation:

dividing a company's current stock price by its earnings per share (EPS)

45/2.25=20

4 0
3 years ago
Gwen owns 357 shares of common stock in a software company. The software company
igomit [66]

Answer:

Dividend Yield = 0.25423 or 25.423% rounded off to 25.42%

Explanation:

The dividend yield is the return provided by a stock in form of dividend which is expressed as a percentage of the current market price. Thus, dividend yield can be calculated as follows,

Dividend Yield = Annual Dividend / Current Market Price

Dividend Yield for Gwen will be,

Dividend Yield = 3.75 / 14.75

Dividend Yield = 0.25423 or 25.423% rounded off to 25.42%

3 0
3 years ago
A company has three product lines, one of which reflects the following results: Sales $ 215,000 Variable expenses 125,000 Contri
oksano4ka [1.4K]

Answer: option C

Explanation: THIS CAN BE REPRESENTED AS FOLLOWS :-

If we eliminate the product there would be no sales, no variable expenses and therefore, no contribution.

  sales                    = nil

-variable expenses= <u>nil</u>

contribution              = nil

- fixed expenses      = <u>56,000</u>

NET LOSS              = <u> (56000)</u>

.

NOTE :-

Fixed expense = (140,000)*(40%)= 56,000

.

.

Thus increase in loss would be 56000- 50,000=6000

6 0
3 years ago
When underapplied or overapplied manufacturing overhead is prorated, amounts can be assigned to which of the following accounts?
laila [671]

Answer:

b. Cost of Goods Sold, Work-in-Process Inventory, and Finished-Goods Inventory.

Explanation:

Whenever manufacturing overheads are prorated and under-applied or over-applied, then they are charged to inventory or cost which includes overheads as part of it.

As for instance, raw material inventory do not include any overheads, it is just the purchase price of inventory, as no work is performed on it.

Cost of goods sold, includes all the cost incurred to sale the good, from acquiring raw material to converting finished goods, and then adding the sales expense the goods are sold.

Finished goods include every material and overhead to convert the item into finished state and usable state.

Work in process is half way completed, or the percentage prescribed and includes raw material, includes overheads, but the product is somewhere more than raw inventory and less than finished good.

Therefore, correct option is:

b.

7 0
3 years ago
An employer can refuse to hire you if you refuse a drug screening test or background check.
Kruka [31]
Yes. this statement is true.
Why?
Because it is one of the Company's requirements to have a medical certificate before you can be deployed to their company.
If in case you will refuse to follow this order from them, they have all the authority to backout from hiring you to their comapany
8 0
3 years ago
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