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Andrews [41]
3 years ago
10

Steve's Cider Shack, Inc. just paid a dividend of $8 per share of common stock. The dollar amount of the dividends is expected t

o grow at a constant 2% per year definitively into the future. The required rate of return from shares of common stock from similar businesses in the current economic climate is 13%
What would you expect the current market price of a share of Steve's Cider Shack common stock to be?

Assuming the cash dividend amount and the growth rate are accurate, what is the annual rate of return on your investment in Steve's stock if you purchased shares for $63 per share?
Business
1 answer:
mamaluj [8]3 years ago
8 0

Answer:

Check the following calculation

Explanation:

Current price : D0(1+g)/(Rs-g)

                  8 (1+.02)/(.13-.02)

                  8* 1.02 / .11

                   = $ 74.18 per share

2) Dividend: 8(1+.02) = 8.16

Annual rate of return : [P1- P0+D ]/P0

             [74.18 - 63 + 8.16 ]/63

                19.34/63

                  .3070 or 30.70%

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The cost of goods for Mandy Manufacturing Company flow through an assembly and a finishing department before being transferred t
laila [671]

Answer:

Option (D) is correct.

Explanation:

Given that,

Beginning work in process = $4,000

Ending work in process in finishing department = $6,000

Cost transferred = $47,000

Direct material = $15,000

Direct labor  = $46,000

Overhead  = $22,000

Cost incurred in finishing department:

= Beginning work in process + Cost transferred + Direct material + Direct labor + Overhead

= $4,000 + $47,000 + $15,000 + $46,000 + $22,000

= $134,000

Cost of goods transferred to the Finished Goods Inventory account:

= Cost incurred in finishing - Ending work in process

= $134,000 - $6,000

= $128,000

5 0
3 years ago
Which set of changes is definitely predicted to lower real gdp in the short run?
Tatiana [17]
D. foreign real national income falls and wages rates rise. 
3 0
3 years ago
Be3bl08r.42.028
Zepler [3.9K]

the answer is b message me if it is wrong

5 0
3 years ago
Gabriel put $6000 in a 2-year CD paying 4% interest, compounded monthly. After 2 years, he withdrew all his money. What was the
NeTakaya
First, we calculate for the effective annual interest given the interest in the scenario. 
                          ieff = (1 + i/m)^m - 1
Substituting the values,
                          ieff = (1 + 0.04/12)^12 - 1 = 0.0407
The effective interest is equal to 4.07%. 

The future amount after 2 years,
                         F = ($6000) x (1.0407)^2 = $6498.86
5 0
3 years ago
Read 2 more answers
Summerdahl Resort’s common stock is currently trading at $36 a share. The stock is expect- ed to pay a dividend of $3.00 a share
Zigmanuir [339]

Answer:

<u>Cost of common equity is 0.1333 or 13.3%</u>

Explanation:

P= D1/(r-g)

D1=3.00

g= 0.05

P=36

Here we have ,

3.00/(r-0.05) = 36

r-0.05= 3/36= 0.08333

r= 0.1333= 13.33%

6 0
3 years ago
Read 2 more answers
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