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
iragen [17]
3 years ago
13

Goode Inc.'s stock has a required rate of return of 13.50%, and it sells for $15.00 per share. Goode's dividend is expected to g

row at a constant rate of 7.50%. What was the last dividend, D0?
Business
1 answer:
Ray Of Light [21]3 years ago
6 0

Answer:

The last dividend = $0.84

Explanation:

We know,

Current stock price, P_{0} = D_{1} ÷ (r_{s} - g)

Given,

Market rate of return, r_{s} = 13.50% = 0.135

Growth rate, g = 7.50% = 0.075

Expected dividend, D_{1} = D_{0} × (1 + g)

Thus we have to determine D_{0} as it is the current year dividend or most recent dividend.

Current stock price, P_{0} = $15

Putting the values into the above formula, we can get,

$15 = [D_{0} × (1 + g)] ÷ [(r_{s} - g)]

or, $15 = [D_{0} × (1 + 0.075)] ÷ (0.135 - 0.075)

or, $15 = (D_{0} × 1.075) ÷ 0.06

or, $15 = D_{0} × 17.9167

or, D_{0} = $15 ÷ 17.9167

Therefore, the last dividend D_{0},  = $0.84

You might be interested in
Canfield Technical School allocates administrative costs to its respective departments based on the number of students enrolled,
Svetradugi [14.3K]

Answer:

The total amount of administrative cost to the Accounting Department is $ 14,900.

Explanation:

In order to calculate the total amount of administrative cost to the Accounting Department, first we need to calculate the Utilization Ratio of the particulars, using the following formua:

Utilization Ratio=(Total amount particular/Utilised by accounting department)

Hence, the Utilization Ratio of Administration costs =(50/280)

                                                                                    =0.178

             the Utilization Ratio of Maintenance fee =(12,000/36,000)=0.33

             the Utilization Ratio of Utilities=(12,000/36,000)=0.33

Therefore, the total amount of administrative cost to the Accounting Department=(0.178×$50,000)+(0.33×$12,000)+(0.33×$6,000)

                  =$8,900+$4,000+$2,000

                  =$14,900

6 0
3 years ago
George owns a custom pottery business where he makes all types of mugs and drinkware. Which of the following products would dram
liq [111]

Answer:

a. glass coffee mugs

Explanation:

As we know that the glass coffee mugs and the pottery mugs are the subsitutes goods. In the case when the price of glass coffee mugs would decline so it would more consume due to which the demand of the pottery mugs would reduced

Therefore as per the given situation, the product that impact the profit margin is option a

hence, the correct option is a.

7 0
3 years ago
Englewood Company has an opportunity to produce and sell a revolutionary new smoke detector for homes. To determine whether this
Alchen [17]

Answer:

1) Compute the net cash inflow (cash receipts less yearly cash operating expenses) anticipated from the sale of the smoke detectors for each year over the next 12 years.

year              net cash flow

0                   -$140,000

1                    ($20 x 4,000) - $70,000 - $127,500 + $7,500 = -$110,000

2                   ($20 x 7,000) - $70,000 - $127,500 + $7,500 = -$50,000

3                   ($20 x 10,000) - $50,000 - $127,500 + $7,500 = $30,000

4                   ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

5                   ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

6                   ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

7                   ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

8                   ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

9                   ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

10                  ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

11                   ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

12                  ($20 x 12,000) - $40,000 - $127,500 + $7,500 + $40,000 +

                    $10,000 = $130,000

2) Using the data computed in (1) above and other data provided in the  problem, determine the net present value of the proposed investment.

using a financial calculator, the NPV = -$56,801.13

3) Would you recommend that Englewood Company accept the smoke detector as a new product?

Since the NPV is negative, the project should be rejected.

8 0
3 years ago
If you're introducing your boss, Mr. Schott, the company's president, to a visiting sales representative, Ms. West, you would sa
Aneli [31]
You would say "<span>Mr. Schott, Ms. West, sales representative for Seascape Graphics."
In professional introductions like this, you should include both name, position, and the place of the workers of that person. By doing this, your boss will understand the probable intent of that person and understand the relevancy between her and what the company wants to achieve.</span>
3 0
3 years ago
Read 2 more answers
In the long run for a competitive firm,
Andrei [34K]

Answer:

The correct answer is letter "C": the firm is at the bottom of its short run average cost curve.

Explanation:

Competitive firms are companies that accept the equilibrium price of a given good or service within a market. If they try to raise the price, they will not be able to sell their products. It is said that <em>in the long term a competitive firm is at the bottom of its short-run average cost curve because it portraits the most efficient level of production</em>. That curve shows the optimal least-cost input combination for producing output.

8 0
3 years ago
Other questions:
  • You put $500 in an interest-bearing bank account that pays 2% per year has a fee of two dollars per month. Are you getting ahead
    8·1 answer
  • If the market value of a firms assets is greater than the book true or false
    15·1 answer
  • Mueller Company sold merchandise costing $120,000 for $240,000. Mueller estimates that merchandise costing $5,000 will be return
    12·1 answer
  • Complete the bill of materials by calculating the extended cost of each component and the total materials cost for each brake sy
    7·1 answer
  • When the sequel to Star Wars: The Force Awakens eventually shows up on their regular television networks, this group might watch
    14·2 answers
  • Through what process can special interest groups and businesses influence the government?​
    8·1 answer
  • On January 4, 2013, Franc Company purchased for $27,000 a patent that had been filed 8 years earlier. The patent covers a manufa
    15·1 answer
  • If the unemployment rate falls below its long-run level, which policies would be appropriate to stabilize output? a. increase th
    10·1 answer
  • What divergences arise between equilibrium and output and efficient output when(10) a) negative externalities and b) positive ex
    13·1 answer
  • El factor productivo naturaleza se considera originario debido a que??
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!