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Studentka2010 [4]
3 years ago
6

The Carsons are going on a vacation back to Texas. When they lived there, Gwen Carson loved Blue Bell Cookies. Blue Bell is sold

only in Texas. She plans to buy two boxes at the first store she visits after they arrive. For Gwen, Blue Bell represents a(n) ____ product.
Business
1 answer:
sveticcg [70]3 years ago
6 0

Answer: Specialty Product

Explanation: Blue bell cookie represents a typical example of a specialty product to Gwen, because the cookie bears a special place in her heart.

A specialty product is a product that is very special to a consumer and the consumer can go to any length to purchase them.

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A stock you are evaluating just paid an annual dividend of $2.70. Dividends have grown at a constant rate of 2.4 percent over th
Nady [450]

Answer:

<em>Value of the stock in four years: $22.69</em>

Explanation:

We use the gordon model  to sovle for the intrinsic value (fair value) of the share according to their future cash flow:

\frac{divends_1}{return-growth} = Intrinsic \: Value

the formula uses next year dividends so we need to calcualte:

2.70 x 1.024 = 2,7648‬

Now we can solve for the value of the stock:

g = 0.024

r = 0.158

\frac{2.7648}{0.158-0.024} = Intrinsic \: Value

Present Value = 20.63283582

That is the value of the stock today.

Now we apply the grow factor for the next four year:

Principal \: (1+ r)^{time} = Amount

Principal 20.63283582

time 4.00

rate 0.02400

20.6328358208955 \: (1+ 0.024)^{4} = Amount

<em>Amount 22.69</em>

6 0
3 years ago
If the book value per share is $40 and the market price is 52.50 per share calculate the required rate of return on the stock.
pav-90 [236]

Answer:

0.11 or 11%

Explanation:

The computation of the required rate of return is given below:

Required Rate of Return is

= Next Year Dividend ÷ Current Market Price + Growth Rate

= $3.15 ÷ $52.50 + 0.05

= 0.06 + 0.05

= 0.11 or 11%

working note

Given that

Current Market Price = $52.50

As we know that  

Growth Rate = Return on Equity × Retained Earning Ratio

Now  

Return on Equity = EPS ÷ Book Value of Share

= $5 ÷ 40

= 12.50%

So,  

Retained Earning Ratio is

= 1 - Dividend Payout Ratio

= 1 - 0.60

= 0.40

And,

Dividend Payout Ratio = DPS ÷ EPS

= $3 ÷ $5

= 0.60

Now

Growth Rate = 12.50% × 0.40

= 5%

So,

Next Year Dividend = Dividend Recently paid × (1 + growth rate )

= $3 × 1.05

= $3.15

7 0
3 years ago
Tamara is 52 years old and her divorce became final on September 20, 2014 and has not been modified. The divorce decree stipulat
never [62]

Answer:

Please see attachment

Explanation:

Please see attachment

8 0
3 years ago
Gross Profit Method: Estimation of Flood Loss
Anastaziya [24]

Answer:

                                  Hodge Company

            Calculation of Estimated Loss on Inventory  in the

                 Flood Using Gross Margin (Profit) Method

                                   November 21, 2016

Inventory at November 1, 2016                                       $96,000

Purchases from November 1, 2016                                 <u>$131,000</u>

to date of flood  

Cost of goods available for sale                                     $227,000

<u>Estimated cost of goods sold:</u>

Net sales from November 1, 2016          $250,000

to date of flood  

Less: Estimated gross margin                 <u>$75,000</u>          <u>$175,000</u>

(250,000 * 30%)

Estimated cost of inventory at date of flood                   $52,000

Less: Salvage goods                                                         <u>$9,200</u>

Estimated loss on inventory in the flood                       <u>$42,800</u>

3 0
3 years ago
Nov. 5 Purchased 850 units of product at a cost of $10 per unit. Terms of the sale are 3/10, n/60; the invoice is dated November
pickupchik [31]

Answer: Please see explanation column for answer

Explanation: A perpetual inventory system maintains inventory balances ensuring that records are continually made immediately when purchases or sale are made together with any returns which are recorded in inventory accounts.

To record purchase of merchandise

Date         Account                                    Debit       Credit

Nov 5    Merchandise Inventory         $8500

         Accounts payable                                               $8,500

To record return of merchandise purchased

Nov 7      Accounts payable                  $300

       Merchandise Inventory                                          $300

To record payment of inventory

Nov 15    Accounts payable                $8,200                      

              Cash                                                                  $7,954

          Merchandise Inventory                                         $246

Calculation =

Nov 5 - Cost of merchandise purchased =  No of units x unit price = 850 x 10 =$8500

Nov 7 - Cost of merchandise returned =  No of units returned x unt price = 30 x 10 = $300

discount received = Balance from accounts payable  x discount rate = (8,500- 300) x 3%= 8200 x 0.03=  $246

   Cash  =    Accounts payable    - Merchandise Inventory = $8200 - 246 =$7984.

4 0
3 years ago
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