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Bingel [31]
3 years ago
12

Francis Inc.'s stock has a required rate of return of 10.25%, and it sells for $57.50 per share. The dividend is expected to gro

w at a constant rate of 6.00% per year. What is the expected year-end dividend, D1? a. $2.20 b. $2.44 c. $2.69 d. $2.96 e. $3.25 quilzet
Business
1 answer:
aleksandrvk [35]3 years ago
6 0

Answer:            ke = D1/Po + g

                 0.1025 = D1/57.50 + 0.06

        0.1025-0.06 = D1/57.50

            0.0425     = D1/57.50

                      D1    = 0.0425 x 57.50

                      D1    = $2.444

           

Explanation: Cost of equity is equal to dividend in 1 year's time divided by the current market price plus the growth rate. Other variables were provided in the question except the dividend at the end of the year (D1).

Thus, D1 becomes the subject of the formula. The appropriate cost of equity is $2.44. The correct answer is B.

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jacob owns a policy that pays a death benefit only if he dies within the 20-year policy period. if jacob dies anytime that the p
galina1969 [7]

Jacob owns a policy that pays a death benefit only if he dies within the 20-year policy period. if jacob dies anytime that the policy is in force, his beneficiary will receive $100,000. the premium that jacob pays for this policy will be the same throughout the 20-year policy period. jacob owns A level term policy.

A purposeful set of rules designed to direct behavior and produce logical results is called a policy. A policy is a declaration of intent that is carried out through a method or protocol. Typically, a governance board inside a company adopts policies. Both subjective and objective decision-making can benefit from policies.

A government or other institution's policy may be a legislation, rule, process, administrative decision, inducement, or voluntary practice. Resource allocations frequently reflect policy decisions. Policies in many different industries can affect health.

Learn more about policy here

brainly.com/question/1578160

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5 0
2 years ago
Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2021 are as follows:
Lynna [10]

Answer:

Ending inventory : $868

Explanation:

FIFO (First-In-First-Out) is a method of inventory valuation where the inventory that is received first is sold first. In other words, the earliest inventory is used first. This is common for perishable inventory such as fruits and vegetables which if not used fast, will be wasted.

01/01/21 : Beginning Inventory : 200 units x $5 = $1000

01/15/21 : Purchases : 100 units x $5.3 = $530

01/28/21 : Purchases : 100 units x $5.5 = $550

Total units = 200 + 100 + 100 = 400 units

Units sold = Total inventory available for sale - ending inventory

= 400 - 160 = 240 units.

COGS:

Beginning Inventory : 200 units x $5 = $1000

Purchases : 40 units x $5.3 = $212

Cost of goods sold : $1000 + $212 = $1212

Ending inventory:

Purchases : (100 - 40) units x $5.3 = $318

Purchases : 100 units x $5.5 = $550

Ending inventory : $318 + $550 = $868

6 0
3 years ago
A new company to produce state-of-the-art car stereo systems is being considered by Jagger Enterprises. The sales price would be
dybincka [34]

<u>Solution:</u>

The price per variable unit is set at 1.5 times the cost; the VC / unit is estimated at $2.50.

Price = 2.5 * 2.50 = $6.25

Variable cost = $2.50

Fixed cost = $220,000

Break-Even Volume = Fixed cost / (Price - Variable cost)

                                  = $220.000 / (6.25 - 2.50)

Break-Even Volume = 58,667 units

4 0
3 years ago
A sudden stop will be easier to navigate if the country borrows internationally in foreign currencies and lend locally in its do
natulia [17]

Answer: False

Explanation:

A sudden stop refers to the sudden decline in net capital inflows in the economy from outside. This is a significant method by which the economy can have access to foreign exchange.

If the country therefore borrows internationally in foreign currencies whilst lending in domestic currency, the sudden stop will be difficult to navigate because it will impair the country's ability to pay off the international creditors it has because it will not have enough of the required foreign currency to pay them.

8 0
2 years ago
Why do businesses compete in free enterprise system?
Bingel [31]

Answer:

Businesses in free enterprise systems compete with each other to produce better products at better prices. Competition leads to innovation, new ideas and a more competitive market. Competiting allows businesses to control themselves and their ideas in an <em>efficent manner. </em>

<em>However, competition in the free enterprise systmem leads to lower wages and income.</em> It leads to the best product at the lowest price. It leads to a variety of products available to the consumer.

<u>if you liked my answer please mark me as brainliest !! thanks <3 !!</u>

3 0
2 years ago
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