1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Paha777 [63]
2 years ago
6

MTB Industries currently pays an annual dividend of $1.50 per share, and it is expected that these dividend payments will contin

ue indefinitely. If the firm's equity cost of capital is 12%, the value of a share of MTB stock is closest to:
Business
1 answer:
Sergio [31]2 years ago
8 0

Answer:

The value of MTB stock is closest to $12.50

Explanation:

The value of MTB stock is calculated using the below formula for the present of an annuity in perpetuity=dividend/expected rate of return

The expected rate of return in this instance is the equity cost of capital

Value of MTB stock=$1.50/12%

Value of MTB stock=$12.5

A rational investor a price for a stock today that reflects the future cash flows payable by a way of dividends payments promised by such stock considering the investor's rate of return as done above

You might be interested in
Category Value Net exports $ 50 Value of new goods and services produced in the underground economy 75 Personal consumption expe
serious [3.7K]

Answer:

Net exports $ 50

New goods and services $75

Personal consumption expenditures $300

Value of the services of stay-at-home parents $25

Gross domestic investment $100

Government purchases $50

Total $600

Explanation: All these values ​​are used to calculate the balance of payments of a country and represent the changes that occur in the accounts to maintain the balance of the economy

3 0
2 years ago
Read 2 more answers
A consumer is consuming at a point on her budget line. Her income is $50 a week, and she purchases hamburgers and grilled cheese
Ivahew [28]

Answer:

Each grilled cheese costs $1.25

Explanation:

Giving the following information:

Her income is $50 a week. Hamburgers cost $4, and she consumes 10 of them. She consumes eight grilled cheese sandwiches.

To calculate the price of the grilled cheese sandwiches, we need to use the following equation:

Income= cost of hamburgers*number of units + cost of grilled cheese*number of units

50= 4*10 + x*8

10=8x

$1.25= x= grilled cheese

3 0
3 years ago
Yoshino, Inc., a merchandising company, has the following budgeted figures:
erik [133]

Answer:

B

Explanation:

It is said that the required ending inventory for the month is $15000 and 20% of the next month's sales.

We are considering the month of march here, therefore the ending merchandise inventory is $15000- and 20% of April's sales.

Given:

April's sales = $91,000

Hence, 20% of April's sales = 0.2*91000 = $18200

Hence, ending merchandise inventory for March = 15000 + 18200 = $33,200

5 0
3 years ago
Brand __________ is the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the p
timama [110]

Answer:

Equity.

Explanation:

Brand equity is the added value that creates a positive impact about the brand name in the minds of a customer. The given definition of brand equity was proposed by Davis Aaker. We can understand brand equity as the image or reputation that any brand holds in the minds of a customer.

4 0
3 years ago
Variable Costing—Production Exceeds Sales Fixed manufacturing costs are $44 per unit, and variable manufacturing costs are $100
Soloha48 [4]

Answer:

a. The variable costing operating income is less than absorption costing operating income.

b. The difference in variable costing and absorption costing operating income is:

= $739,200.

Explanation:

a) Data and Calculations:

Fixed manufacturing costs per unit = $44

Variable manufacturing costs per unit = $100

Production units =  67,200

Sales units =          50,400

Ending inventory = 16,800

Income Statements             Variable        Absorption

                                             Costing           Costing

Costs of goods sold:        $5,040,000   $7,257,600

Fixed expenses                  2,956,800

Total costs                        $7,996,800   $7,257,600   $739,200

b) The difference in variable costing and absorption costing operating income is because of the absorbed fixed costs in ending inventory, which is now carried forward to the next accounting period.

4 0
2 years ago
Other questions:
  • How would the economy of Canada be likely characterized?
    10·2 answers
  • A company manufactured 50,000 units of a product at a cost of $450,000. It sold 45,000 units at $15 each. The gross profit is a.
    8·1 answer
  • J&E Enterprisesi s considering and investment which produces no cash flows for the first year. In the second year, the cash
    7·1 answer
  • Dyl Inc.'s bonds currently sell for $1,040 and have a par value of $1,000. They pay a $65 annual coupon and have a 15-year matur
    14·1 answer
  • _________was created to reform, and to restore confidence in, the stock market by providing a means to monitor the market and to
    13·1 answer
  • 2. Specify which of the following cash transactions would have resulted in the $2,500 posting to the account. (You may select mo
    10·1 answer
  • Relevant Range and Fixed and Variable Costs Vogel Inc. manufactures memory chips for electronic toys within a relevant range of
    5·1 answer
  • Sheldon Company began Year 1 with $1,900 in its supplies account. During the year, the company purchased $5,600 of supplies on a
    6·1 answer
  • Northern Wood Products is an all-equity firm with 17,500 shares of stock outstanding and a total market value of $357,000. Based
    5·1 answer
  • Refer to the data below to answer the following questions:
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!