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3 years ago

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

Business

1 answer:

r-ruslan [8.4K]3 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%

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Vessels Corporation's net income for the most recent year was $2,532,000. A total of 200,000 shares of common stock and 200,000

Usimov [2.4K]

Answer:

The earnings per share of common stock is closest to

D. $11.41.

Explanation:

To find the Price-Earning Ratio first, it's necessary to deduct from the Net Income the part corresponding to Preferred Stock,

which is , $2,532,000 - (200,000*1,25= $250,000) = $2,282,000

Then we calculate the Earning/Share Ratio : $2,282,000/200,000 = 11,41

Shares of Common stock outstanding 200.000

Shares of Preferred stock outstanding 200.000*$1,25 = $250.000

NET INCOME Available $2,282,000 = $ 2,532,000 - $250,000

6 0

3 years ago

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhea

n200080 [17]

Answer:

Variable overhead efficiency variance $ 8,018  Unfavorable

Explanation:

Variable overhead efficiency variance: Variable overhead efficiency variance aims to determine whether or not their exist savings or extra cost incurred on variable overhead as a result of workers being faster or slower that expected.

Since the variable overhead is charged using labour hours, any amount by which the actual labour hours differ from the standard allowable hours would result in a variance

Hours

2,700 units should have taken (2,700 × 3.20) 8640

but did take (actual hours) 9,400

Efficiency variance in hours 760 unfavorable

standard variable overhead cost per hour $10.55

Variable overhead efficiency variance $ 8,018 Unfavorable

Variable overhead efficiency variance $ 8,018  Unfavorable

8 0

3 years ago

Your portfolio has a beta of 1.28. The portfolio consists of 25 percent U.S. Treasury bills, 31 percent Stock A, and 44 percent

Ivanshal [37]

Answer:

2.21

Explanation:

Portfolio beta = Respective beta*Respective weight

Beta of market=1;Beta of risk-free assets=0

1.28 = (0.25*0) + (0.31*1) + (0.44*Beta of Stock B)

1.28 = 0 + 0.31 + 0.44*Beta of Stock B

1.28 - 0.31 = 0.44*Beta of Stock B

Beta of Stock B = 0.97/0.44

Beta of Stock B = 2.204545454545455

Beta of Stock B = 2.21

7 0

3 years ago

6: the cost of a protein bar increased from $2.50 to $2.80. the percent increase in the $2.80 rate was how much?

fredd [130]

The original cost of protein bar = $2.50
The increased cost of protein bar = $2.80
Therefore, the increase in price of the protein bar = $2.80-$2.50 =$0.30 percentage increase = (Difference in price / Original price) x 100
=(0.30/2.50)x100
=(3/25)x100
=3 x 4
=12%

5 0

3 years ago

Consider a production possibilities frontier (PPF) with good X on the horizontal axis and good Y on the vertical axis. The PPF i

Ahat [919]

Answer:

Explanation:

The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.

As more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.

If the PPF is a straight line, it means there is a constant opportunity cost no matter the point one is on the curve

8 0

3 years ago