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iren [92.7K]
2 years ago
11

Harbour View Company common stock has a $30 par value and is currently selling for $65. Industry analysts are predicting dividen

ds to grow at 7.5 percent per year for the foreseeable future. Recently, Harbour View paid a dividend of $1.70. What is the expected rate of return for the stock
Business
1 answer:
madam [21]2 years ago
4 0

Answer:

The expected rate of return on this stock is 10.31%

Explanation:

The constangt growth model of the DDM approach is used to calculate the price of a share based on the edxpected future dividends from a stock that are growing at a constant rate. The formula for price using constant growth model is,

P0 = D0 * (1+g) / (r - g)

Plugging in the values,

65 = 1.7 * (1+0.075) / (r - 0.075)

65 * (r - 0.075) = 1.8275

65r - 4.875 = 1.8275

65r = 1.8275 + 4.875

r= 6.7025 / 65

r = 10.31% or 0.1031

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Larry manages a grocery store in a country experiencing a high rate of inflation. To keep up with inflation, he spends a lot of
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Answer:

menu costs of inflation

Explanation:

Menu costs of inflation refer to the costs of having to modify the prices as a result of the frequent change in the price levels of the products that force businesses to make constant updates on their sales prices. According to this, the answer is that this is an example of menu costs of inflation as the grocery store has to update the prices of the products frequently because of the high rate of inflation.

6 0
3 years ago
Nora contracts to work for ABC Investments during June for $2,500. On May 31, ABC cancels the contract. Nora refuses to accept a
kap26 [50]

Answer:

c. $500

Explanation:

A contract is an agreement by two or more parties to perform a.certain activity within a given time.

When contract are breached, the beneficiary has the right to gain back the amount promised.

If the beneficiary can get another option, the other party is obligated to pay the balance.

On this instance Nora had the chance to get a new job at $2,000 salary the balance is $2,500 - $2,000= $500. Since she rejected the job she is responsible for that loss.

However ABC is still liable to pay the balance of $500

6 0
3 years ago
Gray is a 50% partner in Fabco Partnership. Gray's tax basis in Fabco on January 1, year 4, was $5,000. Fabco made no distributi
arsen [322]

Answer:

$21000

Explanation:

To determine Gray’s tax basis  for a 50% interest in the Fabco Partnership, The interest is increased by the partner’s  distributive share of all partnership items of income and decreased by the partner’s distributive share of all loss and  deduction items.

Gray’s beginning basis = $5,000  

Gray’s 50% distributive share of ordinary  income = 50% × $20000 = $10000

Gray’s 50% tax-exempt income= 50% × $8000 = $4,000 and  

portfolio income = 50% × $4000  = $2,000

Therefore, the ending basis of  Gray’s Fabco partnership interest = $5000 + $10000 + $4000 + $2000 = $21000

6 0
3 years ago
6 what is electrical Filling ?​
andriy [413]
As charging technology currently has a huge influence on how effortlessly and conveniently drivers can charge their electric vehicles as part of their daily routine, Continental is presenting global innovations for this area of electromobility for the first time.
7 0
2 years ago
Shanna Engel started up a new nonprofit organization in 2013 named Concern for Animal Shelter and Habitats (CASH). The organizat
lesya [120]

Answer:

Net Assets = Total Liabilities - Total Assets

Transaction # 1

Cash comes under Permanantly Restricted Net Assets

Hence -

Net Assets = $50,000 - $50,000 = $0

Transaction # 2

As there was no transaction took place hence nothing to be reported.

Transaction # 3

Inventory comes under supply & its temporarily restricted net assets

Hence

Net Assets = $1750 - $1750 = $0

Transaction # 4

Advertising comes under Permanently Restricted Net Assets

Hence

Net Assets = $0 - (-$5000) = $0 + $5000 = $5000

Transaction # 5

Office Equipments comes under Temporarily Restricted Net Assets

Hence

Net Assets = Total Liabilites - Total Assets

= $ 5000 - [ - $5000 + $10000 ]

= $ 5000 - $5000 = $0

Hence ending balance is

Unrestricted Net Asstes = $0

Temporarily Restricted Net Asstes = $0

Permanently Restrcited Net Asstes = $5000

Explanation:

See attached file for table

8 0
3 years ago
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