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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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Sheridan Publishing identified the following overhead activities, their respective costs, and their cost drivers to produce the
Ber [7]

Answer:

Deluxe= $4.25 per book

Moderate= $4.25 per book

Economy= $4.25 per book

Explanation:

Giving the following information:

Activity (Cost) Cost Driver Delux Moderate Economy

Machine maintenance ($330,000) machine hours 250 750 1,000

Setups ($630,000)

Packing ($166,000)

Photo development ($574,000)

First, we need to calculate the total overhead cost:

Total overhead= 330,000 + 630,000 + 166,000 + 574,000= 1,700,000

Now, we can calculate the estimated manufacturing overhead rate to allocate overhead to each book type.

The allocation base is machine-hours.

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 1,700,000/ 2,000= $850 per machine hour.

Now, we can allocate overhead to each book:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Deluxe= $850*250hours= $212,500

Moderate= $850*750hours= $637,500

Economy= $850*1,000= $850,000

Based on the number of units, we can calculate the unitary overhead:

Deluxe= $212,500/50,000= $4.25 per book

Moderate= $637,500/150,000= $4.25 per book

Economy= $850,000/200,000= $4.25 per book

4 0
3 years ago
How does a change in a​ country's real exchange rate affect its net​ exports?
Gnom [1K]

Answer: (C) When a​ country's real exchange rate appreciates​, it imports more and exports less​, causing its net exports to fall.

Explanation:

When a country's real exchange rate appreciates i.e the value of its currency increases, it imports more because more products could be bought with the same amount of the currency as a result of its increased value, and it export less because their goods would become more expensive for other countries resulting in reduced demand. Therefore, resulting in the fall of its net export. This is a form of trade balance.

8 0
3 years ago
A person starts her own business after quitting a job in which she made $75,000 a year. Expenses include $100,000 for wages and
romanna [79]
Explicit costs are business expenses that are easily identifiable and can be accounted for.

1) Wages and salaries = 100,000
2) Utilities expenses = 15,000
3) Materials and Supplies = 150,000
4) Gasoline expense = 5,000

100,000 + 15,000 + 150,000 + 5,000 = 270,000 answer is C.
5 0
3 years ago
You are considering two mutually exclusive projects with the following cash flows. Which project(s) should you accept if the dis
larisa [96]

Answer:

NPV Project A = - $825.31

NPV Project B = $6119.89

So, at a discount rate of 8.5%, Project B should be accepted.

NPV Project A = - $6804

Npv Project B = - $3764.48

So, at a discount rate of 13%, neither of the projects should be accepted.

Explanation:

One of the methods to evaluate a project is to determine the NPV or Net Present Value from the project. If a project provides a positive NPV after discounting the cash flows from the project at a set discount rate, the project should be accepted. If the project gives a negative NPV, the project should be discarded.

The NPV is calculated as follows,

NPV = CF1 / (1+r)  +  CF2 / (1+r)^2 + ... + CFn / (1+r)^n - Initial cost

Where,

  • CF1, CF2, ... represents the cash flows in year 1 and year 2 and so on
  • r is the discount rate

<u>At 8.5% discount rate</u>

NPV Project A = 31000/(1+0.085)  +  31000/(1+0.085)^2  +  31000/(1+0.085)^3 - 80000

NPV Project A = - $825.31

NPV Project B = 110000 / (1+0.085)^3  -  80000

NPV Project B = $6119.89

So, at a discount rate of 8.5%, Project B should be accepted.

<u>At 13% discount rate</u>

NPV Project A = 31000/(1+0.13)  +  31000/(1+0.13)^2  +  31000/(1+0.13)^3 - 80000

NPV Project A = - $6804

NPV Project B = 110000 / (1+0.13)^3  -  80000

Npv Project B = - $3764.48

So, at a discount rate of 13%, neither of the projects should be accepted.

4 0
3 years ago
Joe and Mike have been friends since college and both work in the financial industry. The two work for two un-affiliated broker/
castortr0y [4]

Answer:

A) Because Joe and Mike work for un-affiliated broker/dealers, they are not permitted to share or split commissions, making this arrangement un-acceptable.

Explanation:

Even though Joe and Mike are friends and know each other for a long time, in the real world where money has an almost divine status, they must follow the rules. Commissions can only be split between agents that work for the same broker-dealer firm and are registered to work in the same state.

Since Joe and Mike work for unaffiliated broker-dealers, they cannot share clients or split commissions. Following the rules will not only help them professionally, but probably will help their friendship.

5 0
3 years ago
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