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Levart [38]
3 years ago
6

Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years, because

the firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $18 per share exactly 10 years from today and will increase the dividend by 6 percent per year thereafter. If the required return on this stock is 13 percent, what is the current share price
Business
1 answer:
Ierofanga [76]3 years ago
4 0

Answer:

The current share price $85.60

Explanation:

Share Price is the present value of all the future dividends associated with that share.

Use following formula to calculate the value of share at year 9.

Price of share at year 9 = Dividend  / ( Required rate of return - growth rate )

Price of share at year 9 = $18 / ( 13% - 6% )

Price of share at year 9 = $257.14

The Current Price of the bond can be calculated by discounting the Price of share at year 9.

Current Price = Price of share at year 9 x (  1 + r )^-n

Current Price = $257.14 x (  1 + 13% )^-9

Current Price = $85.60

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While approaching a group of colleagues, Patrice overheard what she believed were inappropriate comments about another team memb
aivan3 [116]

Answer:

The question is incomplete, the options are missing. The options are the following:

a) Suggest to Patrice that spreading negative information learned from eavesdropping is not healthy for the workplace.

b) Thank Patrice for speaking up and forward the item to a neutral third party for handling.

c) Immediately fire the team members who made the comments.

d) Contact the team member who was the subject of the comments to see if he or she was offended.

e) Thank Patrice for her input, but based on the harmlessness of the situation, take no further action.

And the correct answer is the option B: Thank Patrice for speaking up and forward the item to a neutral third party for handling.

Explanation:

To begin with, these kind of situations are most common than expected in the workplace so that is why that nowadays exist a lot of seminars about certain subjects that involves the behavior in the organization and furthermore there is the regular action of the Human Resources Department that takes cares of all the penalties and the solutions when it comes to subjects regarding the employees of the business and their relationship both with each other and with the company. So the correct way to act in this scenario would be to thank Patrice and tell her that the manager would inform to the Human Resources Department about it, being this last one a third party in the situation itself.

6 0
3 years ago
A business operated at 100% of capacity during its first month, with the following results: Sales (90 units) $90,000 Production
umka21 [38]

Answer:

d.$18,900

Explanation:

Gross Profit is the net of Sales value and production cost in the period for the units sold. Under absorption costing all the direct and indirect costs incurred in the production of products are included in the total production cost. As the cost is available for 100 units produced we need to calculate the cost of 90 unit and deduct this cost from the sales value to determine the gross profit and then deduct the operating expenses to calculate the operating income.

Sales (90 units)                                                                  $90,000

Less: Production costs:

Direct materials ( $40,000 x 90/100 )              $36,000

Direct labor ( 20,000 x 90/100 )                       $18,000

Variable factory overhead ( 2,000 x 90/100 ) $1,800

Fixed factory overhead ( 7,000 x 90/100 )      <u>$6,300</u>

Total Production cost                                                       <u>($62,100)</u>

Gross Profit                                                                        $27,900

Less Operating expenses:

Variable operating expenses $8,000

Fixed operating expenses      $1,000

                                                                                          <u>($9,000)</u>

Operating Income                                                             <u>$18,900</u>

6 0
3 years ago
The W. J. Clinton Company issued 750 shares of $1 stated value common stock in exchange for land from the Whitewater Investment
MrMuchimi

Explanation:

The journal entry is as follows:

Land  Dr $70,000

Additional paid in capital  $5,000

             To Common stock $75,000

(Being the common stock is issued in exchanged for cash)

The computation of the additional paid in capital is shown below:

= Common stock - the appraised value of land

where,

The common stock = 750 shares × $100 = $75,000

And, the  appraised value of land is $70,000

So, the remaining balance is

= $75,000 - $70,000

= $5,000

The $5,000 would be recorded as an additional paid in capital

4 0
3 years ago
The purpose on<br> objectives<br> Of competition policy<br> in South Africa.
Afina-wow [57]

Explanation: !!!

Der Onkel meines Vaters ist Hitler und saugt gerne an kahlen Köpfen zum Abendessen. Er liebt auch Kniescheiben zum Mittagessen. Er liest auch seinen Namaz

6 0
2 years ago
Which of the following is a function of a commercial bank? *
Zarrin [17]

Answer:

lending of depositor's funds

3 0
2 years ago
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