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Schach [20]
3 years ago
9

The Lighthouse Co. is in a downsizing mode. The company paid a $2.50 annual dividend last year. The company has announced plans

to lower the dividend by $.50 a year. Once the dividend amount becomes zero, the company will cease all dividends permanently. The required rate of return is 16%. What is one share of this stock worth?
Business
1 answer:
Helen [10]3 years ago
5 0

Answer:

$3.7557

Explanation:

The computation of one share of this stock worth is shown below:-

Years    Dividend     Present value         Present value

                                 factor at 16%    

0            $2.50

1             $2.00         0.8621                             $1.7241

2            $1.50           0.7432                            $ 1.1147

3             $1.00         0.6407                            $0.6407

4             $0.50       0.5523                             $0.2761

                                  Total                              $3.7557

Present value factor at 16% = (1 ÷ (1 + discount rate))^years  

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MC Qu. 123 Fallow Corporation has... Fallow Corporation has two separate profit centers. The following information is available
Rzqust [24]

Answer:

$187,750

Explanation:

Computation for operating income for the West Division.

OPERATING INCOME FOR THE WEST DIVISION

Sales $450,000

Less Cost of goods sold ($155,000)

Gross profit $295,000

($450,000-155,000)

Less: Salary Expense ($51,000)

Allocated rent ($56,250)

($90,000 * 11250/18,000)

West Division income $187,750

Total area of both division = 11,250 + 6,750 = 18,000 square feet

Therefore operating income for the West Division is $187,750

7 0
3 years ago
Couurtney bought a shirt for $24. with a coupon for 25% off. what was the original price of the shirt before the discount
kiruha [24]
Let the original price be x.

then,

x- 25% of x= 24
x- 25x/100 = 24
x-   x/4=24
3x/4=24

3x= 96

x= 32

in short...the original price= 32 dollars

3 0
3 years ago
In any collaboration, data ownership is typically determined by:(A) The research team with access to the best lawyers.(B) The ty
Tatiana [17]

Answer: (B)

The type and source of funds used to support the project.

Explanation:

In a research collaboration, the type and source of funding used, determines ownership of the data in most cases.

In situations where the research is quite expensive to conduct, researchers tend to enter into agreements with firms or institutions that fund the data in exchange for ownership rights.

7 0
4 years ago
A customer has $20,000 to invest, but needs immediate access to the funds to pay a variety of bills that will arrive over the ne
tatiyna

Answer:

A. Money Market checking account

Explanation:

A money market account represents a savings account with some features of a checking account provided by a bank. Herein, a customer deposits money, and such funds are invested into money market instruments which are highly liquid, such as commercial papers, treasury bills, certificate of deposits, etc.

Such accounts provide debit card and checks and allow a certain number of withdrawals every month. The rate of interest offered under these accounts is usually higher than the ordinary savings account.

In the given case, the customer has $20,000 to invest and also requires immediate access to the funds to pay his bills. The best recommendation would be to deposit such funds to a money market checking account, which would provide him with access i.e liquidity, a higher rate of interest than on savings account and safety of investment.

It is noteworthy that all other options specified are not as liquid as money market checking account since, those alternatives either require considerable time in redeeming and selling or do not provide immediate access to funds.

4 0
3 years ago
The group of retired executives that work with small businesses as advisors on a wide range of issues is called the:
VLD [36.1K]

Answer:

Service Corps of Retired Executives (SCORE

Explanation:

The SCORE is a non profit organization. Their members are retired executives who are engaged with the provision of free consultation and counseling services and also giving advices to entrepreneurs and small business owners.

This organization has offices in most parts of the united states and their services can be rendered in person or online. Their counseling services are in all areas and the client bears no charges.

7 0
3 years ago
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