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Paha777 [63]
3 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]3 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

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Ernesto owns a house painting company. Total sales for the past year were $75,000. His bills for running the business were $30,0
pentagon [3]

Answer:

Accounting profit = $45,000

Economic profit = $5,000

Explanation:

The computation of accounting profit and economic profit is shown below:-

Accounting profit = Sales - External expenses

= $75,000 - $30,000

= $45,000

Economic profit = Accounting profit - Implicit cost

= $45,000 - $40,000

= $5,000

Therefore for computing the accounting profit and economic profit we simply applied the above formula so that each one could arrive

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Jax Recording Studio purchased $7,800 in electronic components from Music World. Jax signed a 60-day, 8% promissory note for $7,
Lostsunrise [7]

Answer:

Interest revenue = $7800*8%/360*60

Interest revenue = $104

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5 0
3 years ago
Salon Du Jour offers special combination packages at a reduced price. Separately, a haircut is $30 and a conditioning treatment
Andreas93 [3]

Answer:

product bundle

Explanation:

Product bundling is a sales promotion strategy that involves marketers offer a discount on two or more items sold together as a single item.  Complementary goods, or similar items are packaged and offered to consumers. Product bundling is also called package deals.

Product bundling may be targeted to a particular item on the bundle or both. Due to the discount offered, product bundling increases the revenues from the products on offer. It also can increase the market share for each of the products on offer. In this case, a haircut and a conditioning treatment are complementary services. Bundling them together encourages consumption for both.

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<h3>What is a W-4 form?</h3>

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In Step 3 of the W-4 form, an employee is expected to indicate whether or not he or she has dependents. Thus, an employee would write (record) the number of dependents he or she has in Step 3 of the W-4 form.

In this scenario, we can logically conclude that you should record two (2) dependents in Step 3 of the W-4 form because you've two (2) children, aged 2 and 4.

Read more on W-4 form here: brainly.com/question/15507745

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