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AlekseyPX
3 years ago
8

The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 1

9 percent a year for the next 4 years and then decreasing the growth rate to 3 percent per year. The company just paid its annual dividend in the amount of $3.30 per share. What is the current value of one share of this stock if the required rate of return is 8.80 percent?
Business
1 answer:
Firdavs [7]3 years ago
7 0

Answer

The answer and procedures of the exercise are attached in a microsoft excel document.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

Download xlsx
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3 years ago
On December 31, Lowland, Inc., converts its $900,000 par value bonds (carrying value also $900,000) into 90,000 shares of $6 par
Alexeev081 [22]

Answer:

Lowland, Inc., entry to record this conversion includes a

Dr Bonds Payable $900,000

Cr Common Stock $540,000

( 90,000 shares x $6 par value per share)

Cr Paid-In Capital in Excess of Par Value $360,000

($900,000 -$540,000)

Explanation:

Since Lowland, Inc. converted its $900,000 par value bonds and carrying value also $900,000) into 90,000 shares of $6 par value common stock which means we have to Debit Bonds Payable with $900,000 and Credit Common Stock with $540,000 which is

( 90,000 shares x $6 par value per share) , then Credit Paid-In Capital in Excess of Par Value for $360,000 which is ( value of bonds converted of $900,000 - par value of shares of common stock issued of $540,000).

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3 years ago
The United States has laws meant to stop any one company from dominating
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1 year ago
sadiya, who owns a dance studio, consistently reminds her employees that dance lessons are a luxury for customers, so they shoul
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When Sadiya makes statements to her employees about the characteristics of dance classes, which should be informative and fun, she is explicitly stating values ​​and norms preferred by her organization.

As the owner of the dance studio, she manages and coordinates her collaborators for the institution of organizational culture focused on the studio's vision, mission and values.

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Therefore, through her services, Sadiya aims to generate value to her customers through informative and fun dance classes, increasing the loyalty and success of her business.

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2 years ago
Sand Inc., a company that produces and sells a single product, has provided its contribution format income statement for January
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Answer:

$30,870

Explanation:

Sales per unit: 67,200/3,200 = 21

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.......................

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Contribution margin = Sales-Variable expenses = 73,500-42,630

=$30,870

7 0
2 years ago
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