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Usimov [2.4K]
3 years ago
6

You expect KT industries​ (KTI) will have earnings per share of $ 6 this year and expect that they will pay out $ 2.25 of these

earnings to shareholders in the form of a dividend. ​ KTI's return on new investments is 13​% and their equity cost of capital is 15​%. The value of a share of​ KTI's stock is closest​ to:
Business
1 answer:
snow_lady [41]3 years ago
7 0

Answer:

Value of a share = $15

Explanation:

<em>According to the </em><u><em>dividend valuation model</em></u><em>, the value of a share is the present value of expected dividend discounted at the required rate of return. </em>

This model is expressed in the formula below;

Value of a share = D/Ke

D- dividend payable in year one

Ke- cost of equity

Value of a share = 2.25/0.15

Value of a share = $15

Value of a share = $15

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Complete the sentence. "When a market failure arises because marginal social benefit exceeds the ability and willingness to​ pay
pochemuha

Answer:

The correct answer is option C.

Explanation:

Market failure refers to the situation when the market is not able to efficiently allocate resources and the government has to intervene. Market failure generally happens because of the presence of externalities.  

When the marginal social cost is greater than the ability and willingness to pay, the market will fail to optimally allocate resources. The government, as a result, will intervene.  

The government will use vouchers which will cause the marginal private benefit curve to shift upwards by the size of the per-unit voucher.

6 0
2 years ago
On December 31, 2020, McDaniel Company had $1,200,000 of short-term debt in the form of notes payable due February 2, 2021. On J
icang [17]

Answer:

Current Liabilities:Notes Payable 250,000

Long-term Debt:Notes Payable 950,000

Explanation:

Calculation to Show how the $1,200,000 of short-term debt should be presented on the December 31, 2017, balance sheet.

Hattie McDaniel Company

Partial Balance Sheet

December 31, 2017

CURRENT LIABILITIES

Notes Payable 250,000

($1,200,000-$950,000)

LONG-TERM DEBT

Notes Payable 950,000

Therefore how the $1,200,000 of short-term debt should be presented on the December 31, 2017, balance sheet is:

Current Liabilities:Notes Payable 250,000

Long-term Debt:Notes Payable 950,000

4 0
3 years ago
How do trade agreements of international organizations affect trade? by incentivizing the development of trade policies by elimi
kupik [55]

Any contractual arrangement between governments addressing their trading interactions is referred to as a trade agreement. Trade treaties can be bilateral or multilateral, that is, among two or more states.

<h3>Why are trade agreements important?</h3>

Countries engage in international trade because there are financial benefits to be had. These benefits include expanded product diversity, cheaper pricing, superior quality, enhanced technological spread, and increased consumption by the country as a whole. Increased trade openness has been associated with higher GDP growth.

Thus Option C is correct about the trade agreement.

For more information about the Trade agreement refer to the link:

brainly.com/question/1550074

7 0
2 years ago
gen-tech sells merchandise on account for $4,000 to acorn company with credit terms of 2/10, n/30. within the discount period, a
pickupchik [31]

Within the discount period, acorn company returns $500 of damaged merchandise and a check for $3,450 to settle the account

Using this formula

Check amount=(Merchandise sold- Merchandise return)-  [(Merchandise sold- Merchandise return)× Discount]

Where:

Merchandise sold=$4,000

Merchandise return=$500

Discount=2%

Let plug in the formula

Check amount=($4,000-$500)-[($4,000-$500)×2%]

Check amount=$3,500-($3,500×2%)

Check amount=$3,500-$70

Check amount=$3,430

Inconclusion within the discount period, acorn company returns $500 of damaged merchandise and a check for $3,450 to settle the account.

Learn more here:

brainly.com/question/19865607

5 0
3 years ago
The___ represents the cost of a loan and is expressed as a percent of the amount borrowed
kiruha [24]

Answer:

I’m pretty sure it’s B. interest rate

3 0
3 years ago
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