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Svetllana [295]
3 years ago
7

Zoom Enterprises expects that one year from now it will pay a total dividend of $4.7 million and repurchase $4.7 million worth o

f shares. It plans to spend $9.4 million on dividends and repurchases every year after that​ forever, although it may not always be an even split between dividends and repurchases. If​ Zoom's equity cost of capital is 13.3% and it has 5.3 million shares​ outstanding, what is its share price​ today?
Business
1 answer:
Ira Lisetskai [31]3 years ago
6 0

Answer:

$13.34

Explanation:

For computing the today price, first we have to determine the present value of equity which is shown below:

The Present value of equity = Spending amount on dividends and repurchases ÷ equity cost of capital

= $9.4 million ÷ 13.3%

= $70,676,691

Now the share price equals to

= Present value of equity ÷ outstanding shares

= $70,676,691 ÷ 5.3 million shares

= $13.34

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Explanation:

The ideal would be to create an advertising message that would bring value and engagement to the target audience that you want to reach, which in this case are young university students. Use more modern and informal communication, elements of youth culture, such as music, films and series, which add value to advertising to attract the desired audience.

It would also be important that advertising communication be carried out in colleges, through advertising on student radio or as a sponsor of sports games.

If the product is well aimed at meeting the needs of university students and has a positive response, in the future it can grow and be consumed by other students and thus become a product of value for young people.

4 0
3 years ago
Which of the following statements are false?
Delicious77 [7]
I want to say it's B but 
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Net sales for the year were $325,000 and cost of goods sold was $240,500 for the company’s existing products. A new product is
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Answer:

The correct answer is B.

Explanation:

Gross profit equals net sales minus cost of sales(Net sales- Cost of Sales).

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6 0
3 years ago
Cargo Industries began the month with a $10,000 debit balance in the Cash account. During the month, the total of the debit entr
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Answer:

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A firm is considering expanding its current operations and has estimated the internal rate of return on that expansion to be 12.
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