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erastova [34]
3 years ago
7

1. Stock Values. Integrated Potato Chips paid a $2 per share dividend yesterday. You expect the dividend to grow steadily at a r

ate of 4 percent per year. a. What is the expected dividend in each of the next 3 years? b. If the discount rate for the stock is 12 percent, at what price will the stock sell? c. What is the expected stock price 3 years from now? d. If you buy the stock and plan to hold it for 3 years, what payments will you receive? What is the present value of those payments? Compare your answer to (b). The Club Auto Parts Company has just recently been organized. It is expected to experience no growth for the next 2 years as it identifies its market and acquires its inventory. However, Club will grow at an annual rate of 5% in the third and fourth years and, beginning with the fifth year, should attain a 10% growth rate which it will sustain thereafter. The last dividend paid was $0.50 per share. Club has a cost of capital of 12%. What should be the present price per share of Club common stock?
Business
1 answer:
Blizzard [7]3 years ago
5 0
Hmmmmmmmmm I have no idea this is a tough question
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Splitting water into hydrogen and oxygen

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A frozen foods company changes an ingredient to meet a new government standard. This is an example of
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The company president does not believe that the formula should be altered for fear it will tarnish the company's brand
jonny [76]
<span>The company president does not believe that the formula should be altered for fear it will tarnish the company's brand. </span>She prefers that the company spend more on marketing and increase the price. The company’s accountants believe that if marketing costs are increase by $400,000 then the company can achieve a selling price of $42 per bottle without losing any sales. At this price, will the company achieve its target operating income of 40% of revenue?

Total cost = $9,600,000

Add: Increase in marketing costs= 400 ,000

Total costs of redesigned table = $10 ,000,000

Revised cost per unit ($10,000,000 ÷ 400,000 units) = $25

Target cost per unit ($42 × 0.60) = $25.20

Yes, this proposal allows the company to meet its goal of target costs less than 60% of revenue and target operating income greater than 40% of revenue.

6 0
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