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andrew11 [14]
3 years ago
8

NoGrowth Industries presently pays an annual dividend of $ 1.50 per share and it is expected that these dividend payments will c

ontinue indefinitely. If​ NoGrowth's equity cost of capital is 12​%, then the value of a share of​ NoGrowth's stock is closest​ to:
Business
1 answer:
enyata [817]3 years ago
4 0

Answer:

$12.5

Explanation:

Given that,

Annual dividend paid = $1.50 per share

Equity cost of capital = 12​%

The value of a share of​ NoGrowth's stock is determined by dividing the annual dividend paid by the equity cost of capital of the firm.

Value of share:

= Annual dividend paid ÷ Equity cost of capital

= $1.50 per share ÷ 0.12

= $12.5

Therefore, the value of a share of​ NoGrowth's stock is closest​ to $12.50.

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g An automobile dealer expects to sell 529 cars a year. The cars cost $11,000 plus a fixed charge of $500 per delivery. If it co
harkovskaia [24]

Answer:

Order size = 23 cars

The number of orders = 23

Explanation:

The economic order quantity (EOQ) is the order size that reduces the balance of holding and ordering cost. It is to be noted that at EOQ, the carrying cost is equal to the holding cost.

The EOQ is computed as shown below;

= √ 2 × Co × D)/Ch

Co = Ordering cost

D = Annual demand

Ch = Carrying cost

EOQ = √ 2 × 500 × 529 / 1,000

EOQ = 23

Number of cars to be ordered per time, I.e optimal order size = 23

Order size = 23 cars

2. The number of times orders should be placed per year would be calculated as;

Number of orders = Annual demand / Order size

Number of orders = 529 / 23

Number of orders = 23

4 0
3 years ago
When I but a what I'm loaning money to an organization
PSYCHO15rus [73]
Bussiness company house idk
5 0
3 years ago
Read 2 more answers
Fenland Co. plans to retire $120 million in bonds in five years, so it wishes to fund a savings account at the beginning of each
solniwko [45]

Answer:

240,000,000

Explanation:

Each year you would need to invest 240,000,000 into the saving account over a period of five years to get to the desired amount. If they are only putting in 12%of the retirement funds that would 14,400,000 and that would take about 8 years.

8 0
3 years ago
Which of these is most likely a short-term goal for a high school freshman? A. Buy a house B. Retire comfortably C. Graduate fro
SVETLANKA909090 [29]

Answer:

D. Attend this afternoon's meeting

Explanation:

So Many high school freshman have a goal just to become familiar with their new setting.

3 0
3 years ago
1. Assume that Lyn Addie is an unmarried employee. Her $1,000 of wages have deductions for FICA Social Security taxes, FICA Medi
fredd [130]

Answer:

Net pay $764.5

Explanation:

given data

wages = $1000

income taxes  = $159

solution

particular                              net pay

Gross wages                        $1000

less  

Income taxes withheld         $159

FICA-social security             (1000×6.2%)    = $62

FICA-Medicare taxes           (1000×1.45%)   =       $14.5

Total taxes withheld             (235.5)

So, Net Pay                            $764.5

5 0
3 years ago
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