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Sauron [17]
2 years ago
10

BT Alex Brown Analysts are evaluating Energen (NYSE: EGN) for possible inclusion in a small-cap oriented portfolio. EGN is a div

ersified energy company involved in oil & gas products. As a result of EGN’s aggressive program of purchasing oil and gas producing properties, BT Alex Brown expects above-average growth for the next five years. The analysts establish the following facts and forecasts for EGN: Current market price is $20 Current dividends are $0.54 Required return on equity is 11% Initial 2-year period of 15% per year earnings and dividend growth Which of the following is closest to the present value of dividends for the first-two years? $0.62 $1.14 $0.71$1.34
Business
1 answer:
Lady bird [3.3K]2 years ago
6 0

Answer:

The correct option is $1.14

Explanation:

D1=D0*(1+g)

D1 is year 1 dividend

g growth rate of dividend of 15%

D1=$0.54*(1+15%)

D1=$0.54*(1+0.15)

D1=$0.54*1.15

D1=$0.621 00

D2=$0.621*1.15

D2=$0.71415

We need to apply the discount factor to each of the dividends,the discount factor is 1/(1+r)^n

r is the rate of return of 11%

n is the relevant year

present value of year 1 dividend=$0.62100*1/(1+11%)^1

present value of year 1 dividend=$0.559459459

Present value of year 2=$0.71415*1/(1+11%)^2

Present value of year 2=$0.579620161

Total value present values=$0.559459459 +$0.579620161

                                            =$1.14

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Bluestone Company had three intangible assets at the end of the current year: a. A patent purchased this year from Miller Co. on
german

Answer:

Acquisition cost

a. Patent: $6,000

b. Trademark: $4,000

c. Computer licensing rights: $42,000

2. Amortization for current year

a. Patent: $500

Annual Amortization charge = Cost / Estimated life = $6,000 / 12 = $500

b. Trademark: $0. Since it has an indefinite life.

c. Computer licensing rights: $7,000

Annual Amortization charge = Cost / Useful life = $42,000 / 6 = $7,000

3. Balance Sheet (Partial)

Assets  

Intangible Assets=$44,500

($6,000 + $4,000 + $42,000 - $500 - $7,000)

Income Statement (Partial)

Under Continuing operations  

Amortization expense=$7,500

6 0
3 years ago
George works in an office where smoking is allowed. George develops lung cancer and sues his company, Lennie L.L.C., for hazardo
IRINA_888 [86]
I believe the answer is: Civil court

Civil court is the place where the justice department handle all cases that does not involve the infringement of the criminal laws.
The cases that come into this court would revolve around conflict between two legal citizens or organizations, such as conflict between employees and their workers, conflict between divorced couples, conflict between rent owners and tenants, etc.
5 0
3 years ago
Read 2 more answers
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this y
kakasveta [241]

Answer:

Results are below.

Explanation:

<u>Absorption vs Variable costing method</u>

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).

<u>1) First, we need to calculate the total unitary variable cost:</u>

Unitary production variable cost= 35 + 55 + 40= $130

Selling and administrative costs for the year Variable $ 725,000

Unitary total variable cost= 130 + (725,000 / 80,000)= $139.06

<u>Now, the variable income statement:</u>

Sales= 80,000*350= 28,000,000

Total variable cost= (80,000*139.06)=(11,124,800)

Total contribution margin= 16,875,200

Fixed overhead= (6,600,000)

Fixed Selling and administrative costs = (4,250,000)

Net operating income= 6,025,200

<u>2) First, we need to calculate the unitary production cost:</u>

Unitary production cost= 130 + (6,600,000/110,000)= $190

<u>Now, the absorption costing income statement:</u>

<u />

Sales= 28,000,000

COGS= 80,000*190= (15,200,000)

Gross profit= 12,800,000

Total Selling and administrative costs= (725,000 + 4,250,000)= (4,975,000)

Net operating income= 7,825,000

5 0
3 years ago
Hiv and aids disproportionately impact __________ nations. a. low-income b. high-income c. industrialized d. developed please se
Zolol [24]

Correct option is a: low income

Hiv and aids disproportionately impact low income nations.

Acquired immunodeficiency syndrome  or AIDS is a chronic and  potentially life-threatening condition  which is caused by the human immunodeficiency virus (HIV).

By damaging the immune system, HIV interferes with the  ability of the body  to fight with infections and diseases.

HIV is a sexually transmitted infection (STI). HIV can also be spread by contact with infected blood or it can also spread from illicit injection drug use or sharing needles of infected person.

It can also be spread from mother to child during pregnancy or at the time or  childbirth or breastfeeding.

To know more about HIV/aids here:

brainly.com/question/22072504

#SPJ4

4 0
1 year ago
Bernadette's in charge of marketing a new product in a highly competitive segment. She's planning to launch a Google Search camp
ELEN [110]

Answer:

Her business will have a competitive presence with similar businesses during searches

Explanation:

Google search campaign refers to a form of online advertising wherein an advertisement is displayed in the search listings. It refers to advertisements getting displayed in google search results.

A company or the advertiser may choose a keyword for itself which shall initiate the search and displays it's advertisement.

In the given case, the marketing in charge is planning to launch such an advertisement campaign.

Such a strategy would place her business in contention and competition with similar other businesses during the searches. This shall keep and maintain her business presence felt  and active during the searches.

7 0
2 years ago
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