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zysi [14]
3 years ago
9

Cole Company’s stock currently sells for $20 per share. It just paid dividends of $1.00 per share. The dividend is expected to g

row at a constant rate of 6% a year. What is the required rate of return?
Business
1 answer:
Komok [63]3 years ago
3 0

Answer:

The required rate of return is 11.3%

Explanation:

Required rate of return(ke) = D_{0} x (1+g) / P_{0} + g

                                            = 1 x (1 + 0.06) / 20 + 0.06

                                            = 1 x 0.053 / 20 + 0.06

                                             = 0.113

                                              = 11.3%

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Diamond Boot Factory normally sells their specialty boots for $26 a pair. An offer to buy 70 boots for $18 per pair was made by
xxTIMURxx [149]

Answer:

Diamond Boot Factory

Differential income per pair of boots from accepting the special order is:

= $7.00.

Explanation:

a) Data and Calculations:

Selling price of specialty boots = $26 a pair

Variable cost per boot = $9

Special offer for 70 boots at $18 per pair

Additional stitching cost = $2

Total variable cost for the special order = $11 ($9 + $2)

Revenue from the special order = $1,260 ($18 * 70)

Variable cost for the special order    770 ($11 * 70)

Differential income =                       $490 ($7 * 70)

8 0
2 years ago
The _____ of a police officer would state that the purpose of the job is to protect citizens, patrol highways, provide safe and
Rom4ik [11]

Answer:

The correct answer is letter "C": job description.

Explanation:

A job description outlines the role of the employees within their organizations. It establishes the behavior expected from the workers in the work frame and the duties attached to their job position. The job description is a brief summary of what the employees would be doing in their day-to-day activities at work.

7 0
3 years ago
You own a portfolio which is valued at $8.5 million and which has a beta of 1.3. You would like to create a riskless portfolio b
Stells [14]

Answer:

The answer is option (c)  Short 34 contracts

Explanation:

Solution:

Given that

The information about the portfolio is as stated below:

The value of the portfolio = $8.5 million

The beta = 1.3

The future contract of S&P price = $1310

The size of contract  = 250

Now,

To hedge the risk completely, the desired beta is =0

Thus,

The number of contracts is calculated as follows:

The Number of contract = (desired beta - portfolio beta)*portfolio value/(future price*contract size)

So,

The number of contracts = (0 - 1.3)*8500000/(1310*250) = -34

Then,

The negative sign means  it is going short.

Hence,

A total of 340 contracts must be short.

8 0
2 years ago
Change happens within people, but it also happens in how businesses are organized to address their hrmt440
Ivenika [448]
Ummm qa buisness you choose
4 0
2 years ago
Cavy Company accumulated 580 hours of direct labor on Job 456 and 850 hours on Job 777. The direct labor was incurred at a rate
JulsSmile [24]

Answer:

$30,800

Explanation:

Dr Work in progress 30,800

Cr Wages payable 30,800

Direct labour hours × Per direct labour hour

Job 456

580×15 = 8700

Job 777

850×26= 22100

22,100 + 8,700 = 30,800

7 0
2 years ago
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