1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Zarrin [17]
3 years ago
11

NoMoreKidSongs Corp. paid a dividend last quarter of $6.18. It is expected to grow at 3% over the next year, 8%, the following y

ear, and 11% the year after that. After this period of non-constant growth, the dividends are expected to grow at a constant rate of 2% indefinitely. What is the dividend paid in year 2 after the first two years of non-constant growth
Business
1 answer:
pantera1 [17]3 years ago
8 0

Answer:

$6.87

Explanation:

The Dividend will grow first with non-constant growth rate and then after 3 years it will grow at a constant rate of 2%.

Last Dividend Paid = $6.18

In the first year the Growth rate is 3%

First Year Dividend = $6.18 ( 1 + 3% ) = $6.18 ( 1 + 0.03 ) = $6.18 ( 1.03 ) = $6.3654

In the Second year the Growth rate is 8%

Second Year Dividend = $6.3654 x ( 1 + 8% ) = $6.3654 x ( 1 + 0.08 ) = $6.3654 x ( 1.08 ) = $6.87

You might be interested in
People who receive the benefit of a good without contributing to its costs of production are called?
masha68 [24]

Free riders are those who gain from a thing without contributing to its manufacturing expenses.

<h3>When the creation of a thing incurs external expenses, the?</h3>
  • An external cost occurs when the production or use of a goods or service imposes a cost (negative effect) on a third party.
  • If a good has external costs connected with it (negative externalities), the social costs will be larger than the private cost.
  • Market failure may occur in the presence of external expenses. This is because the free market frequently ignores the existence of external expenses.
  • The cost to a third party of consuming/producing one more unit is known as the external marginal cost (XMC).

learn more about external costs refer:

brainly.com/question/14203073

#SPJ4

5 0
1 year ago
Forest Components makes aircraft parts. The following transactions occurred in July. Purchased $16,950 of materials on account.
horrorfan [7]

Answer:

Forest Components

Journal Entries:

1. Debit Materials Inventory $16,950

Credit Accounts Payable $16,950

To record the purchase of materials on account.

2. Debit Work in Process Inventory $16,780

Credit Materials Inventory $16,780

To record the issue of materials to the production department.

3. Debit Manufacturing Overhead $1,340

Credit Materials Inventory $1,340

To record the issue of materials to the service department.

4. Debit Accounts Payable $16,950

Credit Cash Account $16,950

To record the payment for the materials purchased on account.

5. Debit Materials Inventory $2,020

Credit Work In Process $2,020

To record the record of materials.

6. Debit Work in Process $32,500

Credit Factory Wages $32,500

To record the direct labor cost.

7. Debit Manufacturing Overhead $17,250

Credit Accounts Payable $17,250

To record the purchase of miscellaneous items for the plant.

8. Debit Manufacturing Overhead $36,700

Credit Depreciation Expense $36,700

To record depreciation expense on manufacturing plant.

9. Debit Work In Process $30,875

Credit Manufacturing Overhead $30,875

To apply overhead for the month.

b. T-accounts:

Materials Inventory

Accounts Titles         Debit    Credit

Balance                    $12,320

Accounts Payable   $14,930

Work in Process         2,020

Work in Process Inventory    $16,780

Balance                                  $12,490

Work-in-Process Inventory

Accounts Titles         Debit    Credit

Balance                    $11,755

Materials Inventory   16,780

Materials Inventory                $2,020

Factory Wages        32,500

Overhead                30,875

Finished Goods Inventory    79,330

Balance                                  10,560

Manufacturing Overhead

Accounts Titles                 Debit    Credit

Materials Inventory         $1,340

Accounts Payable           17,250

Depreciation Expense   36,700

Work In Process                         $30,875

Finished Goods Inventory

Accounts Titles         Debit    Credit

Balance                   $2,700

Work in Process     79,330

Cost of goods sold                75,100

Balance                                 $6,930

Cost of Goods Sold

Accounts Titles         Debit    Credit

Finished Goods      75,100

Explanation:

a) Data and Calculations:

Materials Inventory                 ?         $12,490

Work-in-Process Inventory     ?           10,560

Finished Goods Inventory $2,700       6,930

Cost of Goods Sold                ?         75,1000

Predetermined overhead rate = $412,870/$434,600 = $0.95

Overhead applied = $30,875 ($0.95 * $32,500)

5 0
2 years ago
Problem 10-171 The following labor standards have been ... The following labor standards have been established for a particular
lozanna [386]

Answer:

Labour rate variance    $2,925 unfavorable

Explanation:

<em>The labour rate variance is the difference between the standard labour cost allowed for the actual hours worked and  the actual labor cost for the same hours</em>

                                                                               $

Standard labour cost ($19.70× 6500)                128,050

Actual labour cost                                               <u>130,975</u>    

Labour rate variance                                           <u> 2,925 unfavorable</u>

                                 

4 0
3 years ago
Cullumber Corporation purchased 37000 shares of common stock of the Sherman Corporation for $52 per share on January 2, 2020. Sh
yawa3891 [41]

Answer:

Revenue from investment = 229,400

Explanation:

Given:

Purchased shares = 37,000

Value per share = $52

Sherman Corporation total shares = 100,000

Cash dividends = $162000

Net income = $620000

Find:

Revenue from investment = ?

Computation:

Revenue from investment = Net income (Purchased shares / Sherman Corporation total shares)

Revenue from investment = $620000 (37,000 / 100,000)

Revenue from investment = 229,400

7 0
2 years ago
During the RFP stage, B2B buyers:
Thepotemich [5.8K]

Answer:

The correct answer is c. invite suppliers to bid on supplying what is requested.

Explanation:

B2B sales require special attention due to the profile of your buyer.

In this type of sale, buyers have a position much more linked to decision making, so they spend more time on a detailed and critical analysis of the proposal.

The B2B buyer chooses companies that allow the creation of strong business relationships, with a guarantee of supply and deadlines.

This is because B2B negotiations demand an effort, time and investment that, in case of any inconvenience, it can be difficult to recover and find a new supplier.

7 0
3 years ago
Other questions:
  • Eastern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2018.
    8·1 answer
  • Channing Corporation makes two products (A1 and B2) that require direct materials, direct labor, and overhead. The following dat
    10·1 answer
  • What factors might have caused the auditor to inappropriately accept the assertions by management that the vendor allowances sho
    7·1 answer
  • A customer tells you that they “must have” a particular item that you are out of in your store. You can tell that the customer i
    10·1 answer
  • Bike St. Pete currently produces 1,000 tires per month. The following per unit data apply for sales to regular customers: Direct
    13·1 answer
  • When Tesla receives a $1,000 reservation payment from a customer, what Tesla general ledger accounts does this $1,000 impact? Ex
    11·1 answer
  • ​If a beneficiary wants to make sure that the life insurance proceeds being paid out are not exhausted before he or she dies, th
    9·1 answer
  • Which of the following is a risk (or potential pitfall) of cost leadership?
    8·1 answer
  • This business pays income taxes on the sales of its products each year.<br> This is:
    15·2 answers
  • One year ago, Deltona Motor Parts deposited $17,500 in an investment account for the purpose of buying new equipment three years
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!