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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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Upon your graduation from college, you find that the economy is in recession and the unemployment rate is relatively high. Nonet
monitta

Answer:

high unemployment rates do not usually last for very long

Explanation:

Based on the information provided within the question it can be said that the main reason to continue doing this is because you know that high unemployment rates do not usually last for very long. On average in the United States of America there is a recession every 8 years and the the unemployment rates and economy always end up recovering after a certain amount of time has passed.

6 0
3 years ago
Read 2 more answers
If a company is using the accrual basis accounting method, when should it record its earned revenue?
BigorU [14]

Answer: b

Under the accrual basis of accounting, expenses are matched with the revenues related to it and/or are reported when the expense occurs, and not just when the cash is paid. The company should record its earned revenue when services are rendered. Payment may come at a later date.

4 0
3 years ago
Nora Damus reviews her forecasting triumphs and failures as part of her annual report to the Chief Operating Officer. She notes
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Answer:

The answer is D) Nora has a positive tracking signal.

Explanation:

4 0
3 years ago
If beginning inventory is $60,000, cost of goods purchased is $380,000, sales revenue is $800,000 and ending inventory is $50,00
marysya [2.9K]

Answer:

$390000

Explanation:

Given: Beginning inventory= $60000

          Cost of goods purchased = $380,000

          Sales revenue= $800000.

          Ending inventory= $50000.

The Periodic inventory system is used to determine the amount of inventory available at the end of each accounting period.

Cost of goods sold= beginning\ inventory+ cost\ of\ goods\ purchased- ending\ inventory

⇒ Cost of goods sold= 60000+380000-50000

⇒ Cost of goods sold= \$ 440000 - \$ 50000

∴ Cost of goods sold= \$ 390000.

Hence, $390000 is the cost of goods sold under a periodic system.

6 0
3 years ago
Describe the swot analysis, its components, and how it aids a company in making strategic decisions. provide examples of each co
11Alexandr11 [23.1K]
This is my short version.

SWOT: strengths, weaknesses, opportunities and threats.
This is usually accomplished with a large management team. They can break out into teams, for an amount of time they start with strengths. They record and present. Reviewing the similarities help them focus. The ones that don't watchman be reviewed at another time. Do the same with the other categories. Allow 15 minutes for each discussion and 5 minutes for presentation. Hang them on the walls.
GOAL. To finish the 4 categories in about 2 - 2 1/2 hours.
NEXT STEP. Narrowing down the categories so that it is meaningful, doable and beneficial to the attendees.

This is called "where the rubber meets the road." This is where you need the time to discuss and move them towards decisions.
Example:
Strengths: great employees; good, solid management team
Weaknesses: Takes too long to hire when there is a vacancy; sometimes HR gives us resumes that do not match the vacancy
Opportunities: HR may relook at the hiring process, vacancies may get filled accurately and in less time
Threats: HR has vacancies also and they need additional manpower, finding time to improve

HOPE THIS HELPS!!!


4 0
3 years ago
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