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Usimov [2.4K]
2 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]2 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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Donavan spent the day talking with a packaging company in Guam, a lighting specialist in Japan, a touchpad expert in the U.S., a
leva [86]

Answer:

C, distributed product development

Explanation:

Distributed product development can simply be defined as the distribution of the different parts/components of a product to different firms. Distributed product development is usually done when the best of partners are being consulted over a product. Te other firms usually are the best in the production of the components of the product and as such might not be based in the home country of the product's parent company.

From the above question, it is seen that Donavan is speaking to different companies all of the world as regards his product's components. The companies are the best in what they do and he has to have each of them contribute their best ideas to his product.

Cheers.

8 0
3 years ago
Jojo drives a truck for a living but is attending Ashford to earn a degree in business administration because what he really wan
bixtya [17]

Answer:

The correct answer is letter "A": Wait until he enters an area with an available wired network.

Explanation:

It is common that while driving on the road there might be some areas where internet connection can be lost because the antennas of the service provider our mobile lines work with are not nearby. Then, just like in Jojo's case, we should wait to enter into an area where there is enough signal so we can use our mobile internet as usual.

5 0
2 years ago
​business-to-business marketers will sometimes promote their goods directly to consumers. this is because business demand is​ __
MrMuchimi
The request ought to be Derived Demand. This is a term utilized as a part of the financial investigation that portrays the request put on one great or administration because of changes in the cost for some other related great or administration. It is an interest for some physical or immaterial thing where a market exists for both related products and ventures being referred to. The determined request can significantly affect the inferred great's market cost.
3 0
3 years ago
On January 1, 2017, MM Co. borrows $350,000 cash from a bank and in return signs an 4% installment note for five annual payments
frez [133]

Answer:

a. Journal entry to record the issue of notes

Date           Account Title & Explanation   Debit $        Credit $

Jan 1          Cash                                           350,000

                 Notes Payable                                                350,000

                  (To record the issue of notes payable)

b. Calculation of Interest Expenses

                      Particulars                           Amount $

Beginning balance of loan payment         350,000

Annual interest rate                                          4%

Interest expenses                                         14,000

Hence the interest expenses = $14,000

Principal amount is calculated as the difference between the annual payment and the interest expenses as seen below

                   Particulars                           Amount $

Annual payment                                      96,590

Less: Interest expenses                          14,000

Principal Payment                                  82,590

Hence, the principal payment =$82,590

6 0
3 years ago
A plant's fixed overhead costs total $500,000 for a year to produce 400,000 widgets, among other items. If machine‐hours are use
maxonik [38]

Answer:

$0.5

Explanation:

A plant's fixed total overhead cost is $500,000 for a year

400,000 widgets are required to be produced for this period

All processes require a 40,000 machine hours and the widgets use 16,000 hours out of the total hours

The first step is to calculate the fixed overhead application rate

= $500,000/40,000

= $12.5 machine-hour

The fixed overhead that is applied to the widgets can be calculated as follows

= $12.5 × 16,000

= $200,000

Therefore, the fixed overhead that is applied to each of the widgets produced can be calculated as follows

= 200,000/400,000

= $0.5

Hence the fixed overhead that is applicable to each widgets is $0.5

7 0
2 years ago
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