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boyakko [2]
4 years ago
6

What should be the current price of a stock if the expected dividend is $4.00, the stock has a required return of 15%, and a con

stant dividend growth rate of 5%?
Business
1 answer:
TiliK225 [7]4 years ago
7 0

Answer:

current price of stock = $40

Explanation:

given data

expected dividend = $4.00

required return = 15% = 0.15

growth rate = 5% = 0.05

to find out

current price of stock

solution

we get here current price of stock that is express as

current price of stock = \frac{D}{r-g}   ....................1

here r is required return and g is growth rate and D is expected dividend

put here value in equation 1 we get

current price of stock = \frac{4}{0.15-0.05}

current price of stock = $40

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During some year a country had exports of $50 billion, imports of $70 billion, and domestic investment of $100 billion. what was
ch4aika [34]

Savings = Investment +Net exports ( where Net export = Export - Imports)

             = 100 + 50-70

             = $80 billion

Imports are goods and services purchased from the rest of the world by residents of a country rather than domestically produced items. Exports are goods and services produced in the United States but sold to customers in other countries.

Total imports and total exports are critical components in calculating a country's GDP. They are categorized as "Net Exports." Net exports are calculated by subtracting the total value of a country's exports from the total value of its imports. A trade surplus is indicated by a positive net exports figure.

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8 0
2 years ago
Saludable Company produces two types of get-well cards: scented and regular. Drivers for the four activities are as follows:
Neporo4naja [7]

Answer:

1.Consumption ratios for the four drivers in relation to both the cards will be consumption for a particular card/total consumption for both the cards which will be as follows :-

Scented cards Regular cards Inspection hours 100/190=0.53 90/190=0.47 Set up hours 90/120=0.75 30/120=0.25 Machine hours 170/800=0.21 630/800=0.79 Number of moves 210/265=0.79 55/265=0.21

2 .There has been diversification of different activities or drivers among both the products, thus increasing significance of activity Based distribution of overheads. Since if we use blanket rate for allocation of overhead on the basis of machine hours, it will certainly leads to a distorted view as machine hours are significantly higher in case of regular cards whereas consumption of other resources is comparatively lower for it. This, in such a situation its significance certainly gets increased.

3. Activity rates which could be used to assign cost to each product will be calculated as Total cost for the driver/number of units of that driver. It is calculated in the table as follows :-

(A) ( B ) number of units (C=A=B) cost per unit Driver/activity total (hours) of (hour) of cost driver/activity driver/activity

Total cost for the driver/number of units of that driver. It is calculated in the table as follows :-

Driver/activity (A) total cost ( B ) number of units (hours) of driver/activity (C=A=B) cost per unit (hour) of driver/activity Inspecting products 4930 190 (100+90) 25.95 Setting up equipment 4700 120 (90+30) 39.17 Machining 6500 800 (170+630) 8.13 Moving material 1370 265 (210+55) 5.17

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5 0
4 years ago
Read 2 more answers
Assume that we are back to talking about bags of oranges (a private good), but that the government has decided that tossed orang
ruslelena [56]

Answer:

If negative externalities pop up in a market, the equilibrium is higher than the efficient output.

Thus when it comes to the government rectification regarding the side effects of that commercial , activity, if the amount of bags is (1) then the new equilibrium would be: <em>p*= $17</em>

8 0
3 years ago
In​ Guadalajara, Mexico, Mercado LibertaddashSan Juan de Dios is a​ vast, crowded, bustling array of booths and vendors selling
Brums [2.3K]

Answer: C. a market

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Buyers and sellers may interact with each either directly or through other intermediaries like dealers or retailers.

A market may be an actual physical place or a virtual market place.


6 0
4 years ago
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VashaNatasha [74]

Answer:

B)  WACC 12.00000%

Explanation:

WACC = K_e(\frac{E}{E+P+D}) + K_p(\frac{P}{E+P+D}) + K_d(1-t)(\frac{D}{E+P+D})

Ke 0.15 (we are asked for the WACC if retained earnings are used, so we ould assing RE rate

Equity weight 0.55

Kp 0.11

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Kd(1-t) (after-tax debt) 0.07

Debt Weight 0.3

WACC = 0.15(0.55) + 0.11(0.15) + 0.07(0.3)

WACC 12.00000%

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