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
Stolb23 [73]
2 years ago
13

Whitewall Tire Co. just paid an annual dividend of $1.70 on its common shares.

Business
1 answer:
r-ruslan [8.4K]2 years ago
6 0

Answer:

10.59%

Explanation:

First, find next year's dividend using dividend discount model formula;

D1 = D0 (1+g)

D0 = current dividend paid = 1.70

D1 = expected next year's dividend

g = growth rate = 2.10% or 0.0210 as a decimal

therefore. D1 = 1.70 (1+0.0210)

D1 = 1.70 *1.0210

D1 = 1.7357

With the current price of $20.44,  find the cost of stock (r) ;

r = \frac{D1}{P0} + g

P0 = Current price

r = \frac{1.7357}{20.44} + 0.0210\\ \\ =0.0849 +0.0210\\ \\ =0.1059

As a percentage, the cost of stock is 10.59%

You might be interested in
Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to proudcts. Mnaufacturing over
tatyana61 [14]

Answer:

2040.

Explanation:

To reach the total manufacturing cost we need to calculate machining and assembling overhead rate first, in order to calculate the rate we need to divide manufacturing overhead cost on number of hours

Machining OH rate = 280000 / 50000 = 5.60  

Assembling OH rate = 360000/40000 = 9.00

 

manufacturing cost:    

                    machine Assembly Total  

Material  425                175             600  

labor               275                300             575  

Overhead                                                 865  

(50*5.60)       280

(65*9)             585            

Total cost                                               2040  

5 0
3 years ago
Is white wine homogeneous or heterogeneous?
Mrac [35]
I think that white winexpensive is heterogeneous
4 0
2 years ago
Mesa Cheese Company has developed a new cheese slicer called Slim Slicer. The company plans to sell this slicer through its cata
m_a_m_a [10]

Answer:

$ 13.21

Explanation:

Data provided:

Selling cost of cheese slicer = $ 19

Cost of the prototype = $ 29

Expected return = 41%

i.e 41% of the selling cost = 0.41 × $ 19 = $ 7.79

Now,

the target cost is calculated as :

Target cost = Selling Price - Expected Return from the Stock

on substituting the values, we get

Target cost = $ 21 - $ 7.79 = $ 13.21

4 0
3 years ago
Consider the relative liquidity of the following assets:
NeTakaya

Answer:

1. A $20 bill

2. A bond issued by a publicly traded company

3. The funds in a money market account

4. Your car

Explanation:

Liquidity means that how easily an asset can be converted into cash.

1. Currency is the most liquid means of medium of exchange, so $20 bill is highly liquid asset.

2. A publicly traded bond can be converted into cash within a couple of days, so it is second most liquid asset.

3. The funds invested in the money market can be withdrawn within agreed period of time which can be in months or days so it can be at seconf or third most liquid asset.

4. A car can take more than a month to locate a customer to sell it at appropriate price so it is the least liquid asset.

4 0
3 years ago
Convexity implies that duration predictions: I. Underestimate the percentage increase in bond price when the yield falls. II. Un
mestny [16]

Answer:

The correct answer is I. Underestimate the percentage increase in bond price when the yield falls; IV. Overestimate the percentage decrease in bond price when the yield rises.

Explanation:

Convexity is the relationship between price and profitability of a bond. The duration has to do with the period in which the bonds mature, where some variables such as redemptions are taken into account in order to finally be able to measure the risk of changes in interest rates.

7 0
3 years ago
Other questions:
  • Sommer, Inc., is considering a project that will result in initial aftertax cash savings of $1.84 million at the end of the firs
    9·1 answer
  • Which option is the most appropriate genre for work-related communication? answer?
    12·2 answers
  • All of the following are among the activities a project manager should undertake to develop a highly effective team EXCEPT: ​ a.
    14·2 answers
  • The SOC categorizes occupations according to _____.
    10·1 answer
  • The constitutions of most of our States assert, that all power is inherent in the people; that they may exercise it by themselve
    8·2 answers
  • What is one example of a planned economy?
    14·1 answer
  • An example of business-to-business sales is selling ________.
    7·1 answer
  • Investors expect the market rate of return this year to be 14.50%. The expected rate of return on a stock with a beta of 1.2 is
    7·1 answer
  • Mo Meek, Lu Ling, and Barb Beck formed the MLB Partnership by making capital contributions of $75,600, $294,000, and $470,400, r
    6·1 answer
  • Identify at least four different types of financial statement users and discuss why each would use the financial statements.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!