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sveta [45]
3 years ago
7

Gruber Corp. pays a constant $7.55 dividend on its stock. The company will maintain this dividend for the next 15 years and will

then cease paying dividends forever. The required return on this stock is 11 percent. What is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
OlgaM077 [116]3 years ago
4 0

Answer:

The current share price is $54.29

Explanation:

Hi, to find the price of this share, we need to bring to present value all the future cash flow that this share will provide. Since the dividend is a constant dividend, we can find the price using the following equation.

Price=\frac{Div((1+r)^{n}-1) }{r(1+r)^{n} }

where:

r= required rate of return of the stock

Div = constant dividend (in our case, $7.55

n = years in which the share will provide dividends

Everything should look like this

Price=\frac{7.55((1+0.11)^{15}-1) }{0.11(1+0.11)^{15} }=54.29

So, the price of the stock today would be $54.29

Best of luck.

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Joe Corporation produces and sells two products. In the most recent month, Product C90B had sales of $19,950 and variable expens
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Answer:

Decrease

Explanation:

Calculation to determine overall break-even point for the entire company

Contribution margin for C90B = ($19,950-

$5,985)/$19,950

Contribution margin for C90B = 70%

Contribution margin for Y45E =( $26,190- $10,476)/$26,190

Contribution margin for Y45E= 60%

Therefore Based on the above calculation if the sales mix were to shift toward Product C90B with total dollar sales remaining constant, the overall break-even point for the entire company

Would DECREASE reason been that C90B have more contribution margin ratio of 70% compare to Y45E which had contribution margin ratio of 60%

4 0
2 years ago
When buying highly technical, few-of-a-kind products such as hydroelectric power plants, governments have found that general con
Lubov Fominskaja [6]

Answer:

Cost-plus-fixed-fee pricing

Explanation:

Cost-plus-fixed-fee pricing is when the contractor specifies the expenses of a project and a fixed fee for the services that provides which allows the contractor to earn a profit. In this type of pricing, the overall cost of the project  is determined at the end and all the authorized costs are paid to the contractor in full. According to this, the answer is that these contractors use cost-plus-fixed-fee pricing to compensate them for any cost overruns.

7 0
3 years ago
The cost performance index (CPI): a. can be used to estimate the projected cost of completing the project. b. indicates that the
Evgen [1.6K]

Answer:

The correct answer is letter "A": can be used to estimate the projected cost of completing the project.

Explanation:

The Cost Performance Index or CPI measures the projected cost of work completed compared to the current cost spent. The CPI represents a ratio of earned value to actual cost. If the CPI is greater than one, the project is under budget. When the CPI equals one the planned and actual costs are equal. If the CPI is higher than one, the project is over budget.

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3 years ago
Rowdy's Restaurants cash flow (in millions) Cash received from: Customers $4,200 Interest on investments 360 Sale of land 260 Sa
uranmaximum [27]

Answer:

$440 millions

Explanation:

The computation of the net cash inflows (outflows) from operating activities is shown below:

Cash flow from Operating activities  

Cash received from Customers $4,200

Interest on investments $360

Less: Cash paid

Interest on debt -$460

Income tax -$240

Purchase of inventory -$2,600

Operating expenses -$820

Net Cash flow from Operating activities         $440 millions

8 0
3 years ago
studies of bias in the media have reached which of the following? group of answer choices different conclusions: some found a li
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Studies of bias in the media have reached different conclusions: some found a liberal bias, while others found a conservative bias. The correct answer is option(a).

Bias is an unequal burden friendly or against a plan or thing, normally in a habit that is to say stubborn, undermining, or prejudiced. Biases may be native or learned. People concede the possibility cultivate biases for or against an individual, a group, or an assumption. In learning and metallurgy, a bias is an orderly mistake.

Three types of bias may be distinguished: news bias, option bias, and confusion. These three types of bias and their potential answers are debated utilizing differing instances. In cognitive attitude and conclusion wisdom, orthodoxy or conservative bias is a bias that refers to the bias to correct one's faith barely when bestowed accompanying new evidence.

To know more about bias refer to:

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4 0
1 year ago
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