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ehidna [41]
3 years ago
11

Take Time Corporation will pay a dividend of $4.10 per share next year. The company pledges to increase its dividend by 6 percen

t per year, indefinitely. If you require a return of 10 percent on your investment, how much will you pay for the company's stock today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current stock price $
Business
1 answer:
makkiz [27]3 years ago
3 0

Answer:

So the current stock price will be $102.5

Explanation:

We have given that next year dividend D_1=$4.10

Growth rate = 6 % = 0.06

Required return Ke = 10% = 0.01

We have to find the company current stock price

We know that current stock price is given by

P_0=\frac{D_1}{Ke-g}=\frac{4.10}{0.1-0.06}=$102.5

So the current stock price will be $102.5

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A truck was purchased for $180,000 and it was estimated to have a $36,000 salvage value at the end of its useful life. Monthly d
Nezavi [6.7K]

Answer:

the annual depreciation rate is 25%

Explanation:

The computation of the depreciation rate is shown below:

= Yearly depreciation ÷ (Purchased cost - salvage value)

= ($3,000 × 12 months) ÷ ($180,000 - $36,000)

= $36,000 ÷ $144,000

= 25%

Hence, the annual depreciation rate is 25%

we simply applied the above formula

7 0
2 years ago
Rational investors ________ fluctuations in the value of their investments.
Rudik [331]
<span>Rational investors are averse to fluctuations in the value of their investments.</span>
3 0
3 years ago
The following selected transactions were completed by Interlocking Devices Co., a supplier of zippers for clothing: 20Y7 Dec. 7.
Gnesinka [82]

Answer:

The diagram is well defined showing all the parameters required.

Best Regards.

3 0
3 years ago
Allison is an entrepreneur who has started her own video game development company. She lives in california one of the designers
Mazyrski [523]
<h2>Entrepreneurs will be more likely to build virtual teams than to build brick-and-mortar offices.</h2>

Explanation:

Option A: Entrepreneurs surely depends on social media, but this is true for all the business not only suits given situation. This answer goes invalid.

Option B: Sitting and working in various state alone does not mean that they are doing international business.

Option C: Every organization concentrates on business and economy aspect. The given situation, does not speak anything about school. So this option goes invalid.

Option D: This option is valid. Now the trend is to work in various places and get connected with each other through internet. So it means that the teams are virtual. The teams are not built inside office which is made of brick.

4 0
3 years ago
Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in p
galben [10]

Answer:

See explanation below as attached.

Explanation:

1. Predetermined overhead is 139% of direct labor hour

2. Under applied overhead is $6,200

Please find attached breakdown and solution to question 1, 2, 3, 4 and 5.

5 0
3 years ago
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