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
GalinKa [24]
3 years ago
7

Angelina's made two announcements concerning its common stock today. First, the company announced that its next annual dividend

has been set at $2.16 a share. Secondly, the company announced that all future dividends will increase by 4% annually. What is the maximum amount you should pay to purchase a share of Angelina's stock if your goal is to earn a 10% rate of return?
Business
1 answer:
tensa zangetsu [6.8K]3 years ago
5 0

Answer:

  • What is the maximum amount you should pay to purchase a share of Angelina's stock.

    $36,00

Explanation:

The dividend discount model state that the price of a stock should be the result of the Present Value of all of its future dividends, the Gordon growth model indicates that:  

Price per Share = D / (r - g)  = $2,16 / (0,10-0,04) = $36

Where:

D = the estimated value of next year's dividend  

r = The required rate of return

g = the constant growth rate

To this case the value is: $2,16 / (0,10-0,04) = $36

You might be interested in
The purpose of a financial intermediary is to help channel funds
Triss [41]

Answer:

a. from one banks to another

Explanation:

3 0
4 years ago
Tucker Company makes chairs. Tucker has the following production budget for January - March. January February March Units Produc
ziro4ka [17]

Answer:

Total= 45,684 feet

Explanation:

Giving the following information:

Production budget:

February= 10,993

March= 8,559

Each chair produced uses 5 board feet of wood.

Management wants an ending inventory level of raw materials to equal 20% of the production needs (in wood) for the next month.

Direct material budget:

Production= 10,993*5= 54,965

Desired ending inventroy= (8,559*5)*0.2= 1,712

Beginning inventory= (10,993*5)*0.2= (10,993)

Total= 45,684 feet

6 0
4 years ago
Stuart owns 300 shares of Turquoise Corporation stock and 2,000 shares of Blue Corporation stock. During the year, Stuart receiv
Crank

Answer:

The answer is: A) $0

Explanation:

I am assuming Stuart's stock is part of his retirement account. If this is true, then the stock dividends and stock splits are not taxed as they are earned (but they will be taxed later when Stuart starts receiving his distributions).

If Stuart's stock was not part of his retirement account, then he would have to pay taxes (usually a 15% tax rate applies).

5 0
3 years ago
Read 2 more answers
Landor Appliance Corporation makes and sells electric fans. Each fan regularly sells for $40. The following cost data per fan is
olga55 [171]

Answer:$50

Explanation:

3 0
4 years ago
Midwest Corporation has provided the following data concerning manufacturing overhead for 2020: Estimated manufacturing overhead
Firlakuza [10]

Answer:

$18,000

Explanation:

The computation of the amount of manufacturing overhead is shown below:

But before that first determine the overhead rate which is

= $30,000 ÷ 2,000

= $15

Now the amount of manufacturing overhead applied for Job A-101 is

= $1,200 × $15

= $18,000

Hence, the amount of applied manufacturing overhead is $18,000

5 0
4 years ago
Other questions:
  • Jim left his previous job as a sales manager and started his own sales consulting business. He previously earned $70,000 per yea
    8·1 answer
  • ​As the income of bus riders increased, the wages of bus drivers increased simultaneously. How does this affect the market for b
    5·1 answer
  • Which of the following are generally considered to be uncontrollable government expenditures?
    7·1 answer
  • Zappos segments its B2B customers by sifting through the data it has collected on companies that request the free portion of its
    10·1 answer
  • Which of these is a successful time to management strategy
    11·1 answer
  • The accounting manager of Gateway Inns has noted that every time the inn's average occupancy rate increases by 3.3 percent, the
    10·1 answer
  • WJ Group Inc., a large multinational conglomerate, had begun to experience declining revenues over the years. The top management
    10·1 answer
  • Gasoline and bicycles are substitutes in consumption. Suppose we increase the federal gasoline tax to $1 per gallon.
    8·1 answer
  • Patagonia goes to great lengths to minimize work-family conflict by offering interesting benefits like on-site childcare. As a r
    6·2 answers
  • Examine the relationship between total spending by government and consumers in a nation and the location of the countries gdp on
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!