Answer:
The stock price after the dividend payment is $100 per share
Explanation:
According to the data the Dividend per year is $1,000 and the Required Rate of Return is 10%
.
Hence, in order to calculate the stock price after the dividend payment we have to use the following formula first:
Stock price = [Total Dividend amount / Required rate of return]
Stock price = [$1,000 / 0.10]
Stock price = $10,000
Finally the Stock price after the dividend payment. = [Total Stock Value / Number of outstanding shares]
Total Stock value = $10,000
Number of outstanding shares = 100 shares
Stock price after the dividend payment = [$10,000 / 100 shares]
Stock price after the dividend payment = $100 per share
Answer:
price acts as an incentive to consumers and producers. highest (lowest ) prices to obtain consumer to give up more good consumers react to changing price alternative by stopping the quantity of goods demanded
Answer:
$20,000
Explanation:
If the Rubber Division was dropped at the beginning of last year, the financial advantage (disadvantage) to the company for the year would have been: the segment's margin of $20,000
The president considering the elimination of this division is not advisable. As long as none of the allocated common corporate fixed costs could be avoided, If the Rubber Division was dropped at the beginning of last year, the financial disadvantage to the company for the year would have been it's contributed margin that went towards off-setting corporate fixed costs.
Furthermore, if this segment is closed, it would affect the Cork division because it would be reporting a lower net operating income of $90,000 as a result of bearing all the corporate costs alone.
