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Mrac [35]
3 years ago
7

River City Recycling just paid its annual dividend of $1.15 per share. The required return is 12.3 percent and the dividend grow

th rate is 0.75 percent. What is the expected value of this stock five years from now
Business
1 answer:
Tasya [4]3 years ago
6 0

Answer:

10.34

Explanation:

This question refers to Dividend Growth Rate with respect to Stock valuation

The model estimates the dividends over a defined period based on an assumed growth rate to determine the future value of the stock.

The formular to calculating the expected value is as follows

\frac{Dividend Amount(1+Rate)^{Years}  }{Expected Return - Rate}

Please note:

Expected return and Rate are expressed in percentage i.e divided by 100.

Fitting into the formular:

\frac{1.15(1+0.0075)^{5} }{0.123 - 0.0075}

The resulting answer = 10.34

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A company sells two products with information as follows: ​ A B Sales price per unit $12 $22 Variable cost per unit $10 $10The p
Tanya [424]

Answer:

Option (c) : $80,000

Explanation:

As per the data given in the question,

                                         A        B

Sales price                      $12     $22

Less: Variable cost         $10     $10

Contribution per unit      $2      $10

Time required in hours  0.25    0.50

Contribution per hour     $8      $20

Rank                                 2          1

Company should produce only product B to maximize the contribution.

Total contribution = $20 × 4,000

= $80,000

5 0
3 years ago
Is a company bonus earned income?
katrin2010 [14]
<span>Earned income typically includes salaries and bonuses, wages, commissions and tips. Union strike benefits are also considered earned income, as are long-term disability benefits received prior to minimum retirement age. So yes</span>
7 0
2 years ago
The belief that capital punishment is now unconstitutional because society has changed is an example of what doctrine? A. Evolvi
Tasya [4]
A. Evolving standard??
7 0
3 years ago
Rock Solid Concrete Company does not offer customers a cash discount for early payment of their accounts receivable. As a result
eimsori [14]

Answer:

Time value of money

Explanation:

The reason is that the money invested today worth more tomorrow. If we have option to pay our supplier $5m after a year is more suitable option than paying him today. The reason is that the amount paid today will be worth $5m but if we pay our supplier after a year then in real terms we have paid the supplier less because money lost its worth by certain percentage during the year. So paying late makes the liability cheaper required their are no interest or other costs.

3 0
3 years ago
Crane Company makes and sells umbrellas. The company is in the process of preparing its Selling and Administrative Expense Budge
34kurt

Answer:

$22,050

Explanation:

The computation of the total budgeted variable selling and administrative expenses for October is shown below:

Sales Commission (9,000 × $0.60) $5,400  

Shipping (9,000 × $1.2) $10,800

Advertising (9,000 × 0.3) $2,700

Other (9,000 × .35) $3,150

Budgeted Variable Selling and admin expenses $22,050

We simply added all the variable selling and admin expenses so that the total could arrive

3 0
3 years ago
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