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gtnhenbr [62]
3 years ago
11

The last dividend on Spirex Corporation's common stock was $4.00, and the expected growth rate is 10 percent. If you require a r

ate of return of 20 percent, what is the highest price you should be willing to pay for this stock?
Business
1 answer:
grandymaker [24]3 years ago
4 0

Answer:

$44

Explanation:

Data provided in the question:

Dividend on Spirex Corporation's common stock = $4.00

Expected growth rate, g = 10%

Required rate of return, r = 20%

Now,

Price willing to pay = \frac{\textup{D1}}{\textup{r - g}}

here,

D1 = dividend at end of year

or

D1 = $4 × (1 + r )

or

D1 = $4 × ( 1 + 0.1 )

or

D1 = $4.4

Thus,

Price willing to pay = \frac{\textup{4.4}}{\textup{0.2 - 0.1}}

or

Price willing to pay = $44

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An unfavorable materials quantity variance indicates that: select one:
Verizon [17]
<span>c. actual usage of material exceeds the standard material allowed for output.</span>
3 0
3 years ago
In 2019, Laureen is currently single. She paid $2,800 of qualified tuition and related expenses for each of her twin daughters S
Anastaziya [24]

Answer:

Answers below

Explanation:

a) Laureen's AGI - $45,000

For 2 daughter - AOTC is - (2000*2child)+(800*25%+2child)

=4000+400

=4400

For Ryan - 1900

AOTC - 6300

Laureen lifetime learning credit - Eligible is 2000 (The amount of the credit is 20 percent of the first $10,000 of qualified education expenses or a maximum of $2,000 per return)

so in above case it is - 1200*20% =240 (Since AGI is below clip of 56000 he can claim same)

=6300+240 = 6540 is eligible deduction

b)

Since AGI is 95000

AOTC can't be calimed if AGI is above 90000 and hence AOTC is zero and Lifetime learning credit can't be claimed if AGI is above 56000.. Hence it is zero education credit

c)

For Daughter it is same as a above i.e. 4,400

For Ryan it is = 2000+(10000*25%) or maximum 4000

=2000+2500 or 4000

so 4000 is allowed

so AOTC total of 8400 and LLC of 240 so claimed is 8640

3 0
3 years ago
The following is information for Palmer Company. Year 3 Year 2 Year 1 Cost of goods sold $ 643,825 $ 426,650 $ 391,300 Ending in
Vlad1618 [11]

If  Palmer Company. Year 3 Year 2 Year 1 Cost of goods sold $ 643,825 $ 426,650 $ 391,300 Ending inventory 97,400 87,750 92,500 compute inventory turnover for Year 3 and Year 2, and its days' sales in inventory at December 31, Year 3 and Year 2:

a) Inventory turnover for Year 2, and its days' sales in inventory at December 31, Year 2

Inventory turnover =$426,650/($92,500+$87,750)/2

Inventory turnover=$426,650/$90,125

Inventory turnover=4.7 times

Days' sales in inventory=$87,750/$ 426,650×365 days

Days' sales in inventory=$87,750

Days' sales in inventory=75.07 days

b) Inventory turnover for Year 3, and its days' sales in inventory at December 31, Year 3

Inventory turnover=$643,825 /($87,750+$97,400)/2

Inventory turnover=$643,825/$92,575

Inventory turnover=6.95 times

 

Days' sales in inventory=$97,400/$643,825×365 days

Days' sales in inventory=55.22 days

Learn more here:

brainly.com/question/15520316

4 0
2 years ago
If an organization with a corporate social responsibility (CSR) strategy is faced with heavy losses, it will______.
damaskus [11]

The organization will continue to try to balance profit and social goals.

The primary reasons why companies are in business is to make profit. However, a company must be responsible in terms of performing corporate social responsibility to the community where it operates.

Contributing to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethically-oriented is what is meant by corporate social responsibility.

However, where an organization is faced with heavy losses, it must continue to balance profit and social goals. When the company makes profit, then salaries will be paid, social goals will be fulfilled.

learn more at : brainly.com/question/22395337

6 0
2 years ago
Over the past several years, like other auto manufacturers, General Motors (GM) has introduced many new models of sport utility
Aleonysh [2.5K]

Answer:

D. Market maturity

Explanation:

Over the past several years, like other auto manufacturers, General Motors (GM) has introduced many new models of sport utility vehicles (SUVs) in all of its major divisions. This proliferation of SUVs and an increase in gasoline prices have caused sales to level off. In response, General Motors offered rebates of up to $5,000, or no-interest financing, on selected models of SUVs. The largest rebates went to current owners of GM vehicles, so that they would replace their current vehicles with a GM model instead of switching to another brand. The rebates have been heavily advertised on national television. Profit margins per vehicle have shrunk as a result of these costly promotions.

General Motors is currently operating in the Market maturity stage of production life cycle.

6 0
3 years ago
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