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
spin [16.1K]
3 years ago
9

Burkhardt Corp. pays a constant $13.60 dividend on its stock. The company will maintain this dividend for the next 9 years and w

ill then cease paying dividends forever. If the required return on this stock is 12 percent, what is the current share price?
Business
1 answer:
zalisa [80]3 years ago
4 0

Answer:

current share price = $72.464197

Explanation:

given data

dividend = $13.60

time = 9 year

required return = 12 percent

solution

we get here current share price that is express as

current share price = dividend × \frac{1-(1+r)^{-t}}{r}    ..................1

put here value and we get current share price

current share price = $13.60 × \frac{1-(1+0.12)^{-9}}{0.12}  

current share price = $72.464197

You might be interested in
"High Risk Investment = High Return Investment", "Low Risk Investment = Low Return Investment"
Nikolay [14]

Answer:  

Monte Carlo Simulation

Explanation:

Monte Carlo simulation refers to a methodology used in monetary, program management, expense, and other prediction frameworks to know the impact of financial risks. A Monte Carlo model allows one to see all or most of the possible results in order to get a better understanding of the probability of a judgment.

In other words, Monte Carlo approaches can also be used in theory to address any issue with a deterministic explanation. By using the law of large numbers, by getting the empirical average of individual variable tests, integrals represented by expected value of a certain independent variables can be estimated.

4 0
3 years ago
A firm produces two goods q1 and q2. for economies of scope to occur, it must be true that:
Oliga [24]
For economies of scope to occur it must be true that THE COST OF PRODUCING THE TWO GOODS TOGETHER IS LESS THAN THE COST OF PRODUCING THE GOODS SEPARATELY.
The economy of scope is the proportionate savings that is gained by producing two or more different goods together, when the cost of doing so is less than that of producing each separately.
5 0
3 years ago
National Art is a new business. During its first year of operations, credit sales were $40,000 and collections were credit sales
zmey [24]

Answer:

The ending balance of Allowance for Bad Debts account is $800

Explanation:

The computation of the ending balance of allowance for bad debt is shown below:

= Credit sales × uncollectible rate

= $40,000 × 2%

= $800

The estimated amount would be considered as an allowance for bad debts i.e $800, So no other amount would be come while computing the ending balance of Allowance for Bad Debts account.

However, the other information which is given in the question is not relevant. Hence, ignored it

6 0
2 years ago
Financial markets and channel to . They also channel money from individuals who want to for the future to those who need cash to
Monica [59]

Answer:

financial intermediaries, saving, real investment, save, mutual funds, ETF, commodity market, shares, stock market, banks, CFO, liquids

Explanation:

The Question is incomplete. Here Is the complete Question.

Fill in the blanks in the following passage by choosing most appropriate word from the list:  CFO, save, financial intermediaries, stock market, saving, real investment, bonds, commodity markets, mutual funds, shares, liquids, ETFs, banks. each term should be used only once.

Financial market and ________ channel______ to_____ . They also channel money from individuals who want to_________ for the future to those who need cash to spend today. A third function of financial markets is to allow individuals and businesses to adjust their risk. For example,______ , such as the Vanguard Index fund, and ______, such as SPDR's or "spiders," allow individuals to spread their risk across a large number of stocks. Financial markets provide other mechanisms for sharing risks. For example, a wheat farmer and a baker may use the______ to reduce their exposure to wheat prices. Financial markets and intermediaries allow investors to turn an investment into cash when needed. For example, the_______ of public companies are because they are traded in huge volumes on the______ .  ________ are the main providers of payment services by offering checking accounts and electronic transfers. Finally, financial markets provide information. For example, the______ of a company that is contemplating an issue of debt can look at the yields on existing______ to gauge how much interest the company will need to pay.

7 0
2 years ago
If estimated annual factory overhead is $480,000; overhead is applied using direct labor hours; estimated annual direct labor ho
VashaNatasha [74]

Answer:

Undeapplied overhead= $200

Explanation:

<u>First, we need to calculate the predetermined overhead rate:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 480,000 / 200,000

Predetermined manufacturing overhead rate= $2.4 per DLH

<u>Now, we can allocate overhead:</u>

<u></u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 2.4*17,000

Allocated MOH= $40,800

<u>Finally, the over/under allocation:</u>

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 41,000 - 40,800

Undeapplied overhead= $200

4 0
2 years ago
Other questions:
  • Rheingold Supply has a seniority system by which employees who have worked the longest are first in line for promotions and last
    14·1 answer
  • Last week stephanie quit her job as a copywriter at an advertising agency. she has spent the past few days browsing the help wan
    7·1 answer
  • Intask Corporation uses the FIFO method in its process costing system. Beginning inventory in the mixing department consisted of
    14·1 answer
  • Lori's Company has the following​ items: cash in a checking​ account, $ 9 comma 000$9,000​; cash in a savings​ account, $ 7 comm
    15·1 answer
  • Sarah is using the needs approach to determine how much life insurance to buy. Her cash needs are $30,000; her income needs are
    10·1 answer
  • Marigold Corp. self-insures its property for fire and storm damage. If the company were to obtain insurance on the property, it
    9·1 answer
  • On December 10, 2020, Jennings, Inc. paid out total dividends of $350,000 (this was the only dividend payment made during the ye
    8·1 answer
  • HELP HELP 10 POINT FOR YOU ILL MAKE IT 20 HELP HELp
    14·2 answers
  • At Sheridan Electronics, it costs $30 per unit ($16 variable and $14 fixed) to make an MP3 player that normally sells for $49. A
    8·1 answer
  • 2. Why might it be a plus for a company to have such a high share price that trading in its stock is discouraged? What drawbacks
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!