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kipiarov [429]
3 years ago
6

Burnett Corp. pays a constant $8.15 dividend on its stock. The company will maintain this dividend for the next 12 years and wil

l then cease paying dividends forever. If the required return on this stock is 11 percent, what is the current share price
Business
1 answer:
PolarNik [594]3 years ago
5 0

Answer:

$52.91

Explanation:

With regards to the above, we will apply the dividend discount model to come up with the price for share.

Under the dividend discount model, the price for share represents the present value of all its future dividend discounted at the required rate of return.

Since the share has 12 annual equal dividend payments of 8.15 each year, while the required rate is 11%, we can apply the below annuity to arrive at the share price.

(8.15/0.11) × [ 1- 1.11^(-12) ] = $52.91

Therefore, the current share price is $52.91

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Old Economy Traders opened an account to short sell 1,000 shares of Internet Dreams from the previous problem. The initial margi
GrogVix [38]

Answer:

a.38%

b. No because the margin is above the requirement at 38%

c.-150%

Explanation:

a.

1000 shares*$40 per share = 40000

margin requirement is 50% so equity = 20000

1 year later price increase to 50

$1000 shares*$50 per share = 50000

dividend = $2*1000 = 2000

margin = 20000/52000 = 38%

b.

No because the margin is above the requirement at 38%

c.

Price of 1000 stock year 1 at 50$/share = 50000

40000 – 50000 = -10000

Rate of return = (-10000 -20000)/20000 = -150%

3 0
3 years ago
A perfectly elastic demand curve implies that the firm: A) must lower price to sell more output. B) can sell as much output as i
dsp73

Answer:

A perfectly elastic demand curve means that the firm can sell as much output as it chooses at the current price.

Explanation:

The perfectly elastic demand implies that the demand curve is horizontal line parallel to the X axis. The price is fixed at a point and the firm can sell any amount of output at this point. The demand is infinite at the given price level. If the firm makes any changes in this price level, the demand will become zero.

4 0
3 years ago
Printers today have many features that include improved quality, photo printing capabilities, digital camera connectivity, built
iVinArrow [24]

Answer:

A printer is a device that accepts text and graphic output from a computer and transfers the information to paper, usually to standard size sheets of paper. Printers vary in size, sophistication, speed, and cost. In general, more expensive printers are used for higher-resolution color printing.

Printers today have many features that include improved quality, photo printing capabilities, digital camera connectivity, built-in flash memory card readers, wireless connectivity, and faster speed.  

The Six important printer qualities are:

  1. Color: It is important for users who need to print pages for presentations or maps, photos and other pages where color is part of the information. Color printers can also be set to print only in black-and-white. Color printers are more expensive to operate since they use two ink cartridges (one color and one black ink, toner) that need to be replaced after a certain number of pages. Users who don't have a specific need for color and who print a lot of pages will find a black-and-white printer cheaper to operate.  
  2. Resolution: Printer resolution (the sharpness of text and images on paper) is usually measured in dots per inch (dpi). Most inexpensive printers provide sufficient resolution for most purposes at 600 dpi.
  3. Speed: If you do much printing, the speed of the printer becomes important. Inexpensive printers print only about 3 to 6 sheets per minute. Color printing is slower. More expensive printers are much faster.
  4. Memory: Most printers come with a small amount of memory (for example, one megabyte) that can be expanded by the user. Having more than the minimum amount of memory is helpful and faster when printing out pages with large images or tables with lines around them (which the printer treats as a large image).
  5. Wireless connectivity : Specialized printer nowadays have wireless connectivity which allows user to communicate with the machine without physical operation. Like one can just give command to the printer to print their projects using their mobile phone while sitting on the couch. This feature might add extra bucks to the bill but its worth it.
  6. Printer languages The commands from the computer to the printer to tell the printer how to format the document being printed. These commands manage font size, graphics, compression of data sent to the printer, color, etc. The two most popular printer languages are Postscript and Printer Control Language.

Conclusively the best printer will be the one which will provide pleasant color contrast, good resolution, enough memory, wireless connectivity and have better language settings.

3 0
2 years ago
During 2021, Angel Corporation had 990,000 shares of common stock and 95,000 shares of 6% preferred stock outstanding. The prefe
frozen [14]

Answer:

$7.23

Explanation:

Basic Earnings per share = (Net Income - Preferred Dividend) / Weighted average of outstanding common shares

Basic Earnings per share = ($7,350,000 - $195,000) / 990,000 shares

Basic Earnings per share = $7,155,000 / 990,000 shares

Basic Earnings per share = 7.22727273

Basic Earnings per share = $7.23

So, the amount of Angel's basic earnings per share for 2021 is $7.23.

6 0
2 years ago
The ____ adds up the money earned by producers plus taxes paid to the government
SCORPION-xisa [38]
Gross Income. Net income is after taxes have been deducted.
7 0
3 years ago
Read 2 more answers
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