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LUCKY_DIMON [66]
3 years ago
14

Mayfield Inc. will pay a dividend of $3.14 per share next year. The company pledges to increase its dividend by 3.7 percent per

year indefinitely. If you require a return of 10 percent on your investment, how much will you pay for the company's stock today
Business
1 answer:
bulgar [2K]3 years ago
7 0

Answer:

The price that will be paid for the stock today is $49.84

Explanation:

The company is expected to grow the dividends at a constant rate, thus the constant growth model of DDM will be used to calculate the price of the stock today. The formula for the price of the stock is:

P0 = D1 / r - g

Where,

  • D1 is the dividend expected for the next period
  • r is the required rate of return
  • g is the growth rate in dividends

P0 = 3.14 / (0.1 - 0.037)

P0 = $49.84

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An individual buys stock at $40 per share. Many years later, the individual dies when the market value is $60. The estate distri
marissa [1.9K]

Answer:

$60

Explanation:

An individual buys stock at $40 per share. Many years later, the individual dies when the market value is $60. The estate distributes the shares to a beneficiary when the stock is worth $70. Therefore the cost basis to the beneficiary is

The cost basis by definition is usually equal to the fair market value of the property or asset at the time of the decedent's death or when the actual transfer of assets was made.

However for the purpose to be served to reduce the tax due on the inheritance, we have chosen to opt for the fair market value of the property or asset at the time of the decedent's death which is $60

3 0
3 years ago
Supply chain management refers to A. how the firm compensates the employees who work on the​ firm's internal stages of productio
scoundrel [369]

Answer:

B. the decisions around which stages of production to handle internally and which to buy from others.

Explanation:

Supply chain management is fundamentally concerning with the management of a firm's reception of inputs in order to produce output, and with a firm's delivery of those outputs to the final customer.

For example, some firms can have the capability to supply their own raw materials internally, transform them into a finished product, and send the products to the customer.

Other firms have more complicated supply chains: they may buy the raw materials, produce a part of the good in a place, another part in another place, and hire another company to make the deliveries.

3 0
3 years ago
A certain delivery service offers both express and standard delivery. Seventy-five percent of parcels are sent by standard deliv
Elena L [17]

Answer:

Probability, P(n) = 3/8

Explanation:  Let standard delivery be S and express delivery be E.

I) When the parcels were sent:

S(n) = 75/100 and E(n) = 25/100

II) When the parcels arrived:

S(n)← = 80/100 and E(n)← = 95/100

The probability a record of a parcel delivery is chosen, P(n) = S(n)*E(n) + E(n)*S(n) = 75/100*25/100 + 25/100*75/100

P(n) = 3/16 + 3/16 = 6/16

∴ P(n) = 3/8

7 0
3 years ago
The responsibility report for the Augusta Division shows budgeted contribution margin of $2,000,000 and budgeted controllable fi
Mumz [18]

Answer:

D) is 20% above expectations.

Explanation:

The Augusta Division was supposed to earn a net profit of $1,000,000 (= $2,000,000 - $1,000,000). Since the division's manager and his/her team were able to cut reduce fixed costs to $900,000 and increase contribution margin to $2,100,000 (either by increasing selling price or reducing variable costs), then the division earned a net profit of $1,200,000 (= $2,100,000 - $900,000). This net profit is 20% higher than expected, therefore the manager's (and his/her team's) overall performance was 20% above expectations.

5 0
4 years ago
A phone call to a government official by an employee of the enron corporation disclosed the deception and dishonesty of the firm
UNO [17]
This employee played the role of a: whistleblower.
3 0
3 years ago
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