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Thepotemich [5.8K]
3 years ago
11

Singing Fish Fine Foods has a current annual cash dividend policy of ​$2.502.50. The price of the stock is set to yield a return

of 14 %14%. What is the price of this stock if the dividend will be paid a. for 1212 ​years
Business
1 answer:
anygoal [31]3 years ago
6 0

Answer/ explanation:

Using the finite constant dividend model except with f (use infinite constant dividend model)

Price = Dividend × (1 – 1/(1+r)n) / r

a.Price = $2.25 × (1 – 1/(1.12)10/ 0.12 = $2.25 × 5.6502 = $12.71

b.Price = $2.25 × (1 – 1/(1.12)15/ 0.12 = $2.25 × 6.8109 = $15.32

c.Price = $2.25 × (1 – 1/(1.12)40/ 0.12 = $2.25 × 8.2438 = $18.54

d.Price = $2.25 × (1 – 1/(1.12)60/ 0.12 = $2.25 × 8.3240 = $18.73

e.Price = $2.25 × (1 – 1/(1.12)100/ 0.12 = $2.25 × 8.3332 = $18.75

f.Price = $2.25 / 0.12 = $18.754.

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andreev551 [17]

Answer:

Current share price =$77.81

Explanation:

Price of the stock today = \frac{D1}{(1+ke)^1}+\frac{D2}{(1+ke)^2}+\frac{D3}{(1+ke)^3}+\frac{D4}{(1+ke)^4}+\frac{P4}{(1+ke)^4}.

where P4 = \frac{D5}{ke-g}

where D5 = D4(1+g)

Price of the stock today = \frac{16}{(1+0.16)^1}+\frac{12}{(1+0.16)^2}+\frac{11}{(1+0.16)^3}+\frac{7.50}{(1+0.16)^4}+\frac{7.50(1.06)}{(0.16-0.06)(1+0.16)^4} = $77.81

8 0
3 years ago
On June 1, 2022, Elite Service Co. was started with an initial investment in the company of $22,100 cash. Here are the assets, l
Helen [10]

Question Completion:

Cash                         $ 4,600

Accounts receivable   4,000

Supplies                      2,400  

Equipment               26,000

Total assets          $37,000

Notes payable       $12,000

Accounts payable        500

Service revenue       7,500

Supplies expense    1,000  

Maintenance and repairs expense  600

Advertising expense  400  

Utilities expense  300

Salaries and wages expense  1,400

Common stock  22,100

In June, the company issues no additional stock but paid dividends of $1,400.

Prepare an income statement, retained earnings statement, and balance sheet.

Check figures:

·         Net income is $3,800.

·         Total assets are $37,000.

·         Total liabilities are $12,500.

Answer:

Elite Service Co.

a) Income Statement for the month of June 30, 2022:

Service revenue                                         $7,500

Supplies expense                           $1,000  

Maintenance and repairs expense    600

Advertising expense                          400  

Utilities expense                                300

Salaries and wages expense         1,400   3,700

Net Income                                              $3,800

b) Retained Earnings Statement for the month of June 30, 2022:

Net Income                     $3,800

Dividends paid                  1,400

Retained Earnings         $2,400

c) Balance Sheet as of June 30, 2022:

Cash                                   $ 4,600

Accounts receivable             4,000

Supplies                                2,400  

Equipment                         26,000

Total assets                    $37,000

Notes payable                 $12,000

Accounts payable                  500

Total liabilities                $12,500

Common stock                 22,100

Retained Earnings          $2,400

Total liabilities + Equity $37,000

Explanation:

Data and Calculations:

Cash                         $ 4,600

Accounts receivable   4,000

Supplies                      2,400  

Equipment               26,000

Total assets          $37,000

Notes payable       $12,000

Accounts payable        500

Common stock       22,100

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Answer:

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Answer:

The answer is: First line manager

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An increase in the price of maple syrup will decrease both the equilibrium price and quantity in the market for pancakes.
Svetllana [295]
<span>An increase in the price of maple syrup will decrease both the equilibrium price and quantity in the market for pancakes. True

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3 years ago
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