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sladkih [1.3K]
3 years ago
9

You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 4.6 percent indefinitely

. The company just paid a dividend of $3.41 and you feel that the required return on the stock is 11 percent. What is the price per share of the company's stock?
Business
1 answer:
MAXImum [283]3 years ago
6 0

price per share of the company's stock is $53.28

Explanation:

Under dividend growth model a stock is overvalued or undervalued assuming that the firm’s expected dividends grow at a value g forever, which is subtracted from the required rate of return or k.

Therefore, the stable dividend growth model formula calculates the fair value of the stock as P =D1 / ( k – g ).

P= price per share

D1 = current dividend

k = required return

g = growth rate

P= $3.41 ÷ (11 %  - 4.6% ) =( 3.41 ÷ 0.064 )=  $53.28

P= $3.41 ÷ (0.11  - 0.046 ) =( 3.41 ÷ 0.064 )=  $53.28

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EB1. 
aleksandr82 [10.1K]

Answer:

$110

Explanation:

The contribution margin per unit refers to the revenue available per unit to pay for fixed costs and profits.

The formula for contribution margin is selling price per minus variable costs per unit.

, i.e., contribution margin = selling price -variable costs

=$150-$40

=$110

8 0
3 years ago
On January 1, 2022, the Sheridan Company ledger shows Equipment $49,700 and Accumulated Depreciation $18,280. The depreciation r
Lisa [10]

Answer:

revised annual depreciation will be : 13710

Explanation:

After revision the remaining life of equipment shrank down to 2 years, so the depreciation working will be worked out to adjusted the impact of decreasing of useful life.

As per existing information the depreciation charges are calculated as :

(Cost-Salvage Value)/Useful life= (49700-4000)/10 = 4570

Accumulated Depreciation indicates that 4 years have past by (18280/4570)

now remaining years are 6 which will be reduced to 2 after revision so the new working will be as follows:

Remaining Cost :31420  (49700 -18280)

Salvage Value : 4000

Revised Remaining Useful Life  : 2

Revised Calculated Depreciation Annual  : (31420-4000)/2 = 13710

It can be further verified through simple math also:

Adding annual depreciation of remaining 2 years : 13710 +13710 =27420

Value available for depreciation after salvage value : 31420 -4000= 27420

3 0
3 years ago
James Dodgsen is a student in a graduate course in business. The professor in the course has given Dodgsen and his classmates a
nikdorinn [45]

Answer:

d. Dodgsen has been dishonest.

Explanation:

Looking at the scenario in the question above, it is possible to say that James Dodgsen was dishonest in copying Jane's responses.

This question leads us to the conclusion that Dodgen's schedule lacked organization. As much as he was prepared for the other classes and having just coincided with a surprise test when he couldn't find time to study the content of that class specifically, there is a problem looking at his classmate's answers when the test given by the teacher was individual guidance.

The organization of the agenda is essential for a student of business administration, since the corporate environment consists of the functions of organizing, commanding, coordinating and controlling, therefore there must be established times for each task of daily fulfillment, whether in a personal or professional environment. , so that there is a greater possibility of fulfilling the essential tasks and the established objectives are properly achieved

7 0
3 years ago
Common-size statements​ ________. A. show the same percentages that appear in a horizontal analysis B. report dollar amounts and
igor_vitrenko [27]

Answer: C. allow the users to compare numbers in relative terms rather than absolute amounts

Explanation:

By expressing every item as a percentage of sales or revenue, users of these statements are able to compare figures on a relative term. With the relativity being related to the aforementioned sales or revenue.

6 0
2 years ago
An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine featured actress Melina Kanakaredes and offered read
mafiozo [28]

Answer: C) the number of people who redeem the coupon.

Explanation:

The coupon was for people who tried the makeup if they saw the ad. To measure how many people tried the new makeup then based on the ad it would be best to use the number of people who redeemed that coupon when purchasing because it would mean that those people saw the ad and decided to act on it especially if the ad contained an actual physical coupon or a digital coupon that can only be used once. This way Maybelline will know for a fact that those using the coupons saw the ad.

8 0
3 years ago
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