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creativ13 [48]
3 years ago
15

Home Parties is paying an annual dividend of $1.78 every other year. The last dividend was paid last year. The firm will continu

e this policy until two more dividend payments have been paid. Three years after the last normal dividend payment, the company plans to pay a final liquidating dividend of $32 per share. What is the current market value of this stock if the required return is 14.7 percent?
Business
1 answer:
yuradex [85]3 years ago
8 0

Answer:

Home Parties is paying an annual dividend of $1.78 every other year. The last dividend was paid last year. The firm will continue this policy until two more dividend payments have been paid. Three years after the last normal dividend payment, the company plans to pay a final liquidating dividend of $32 per share. What is the current market value of this stock if the required return is 14.7 percent?

The current market value of this stock = $16.78.

Explanation:

Current market value of this stock = $1.78/1.147 + $1.78/1 .147∧3+ $32/1.147∧6

Current market value of this stock= 1.55187 + 1.78/1.509 + 132/2.27709

Current market value of this stock= 1.55187 + 1.17959 +  14.053

The current market value of this stock = $16.78.

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Match the following statements to the appropriate terms. An entry that involves three or more accounts. Transferring journal ent
Evgen [1.6K]

Answer: The answers are given below

Explanation:

• An entry that involves three or more accounts. = Compound entry.

A compound entry is when two or more journal entries are combined together on order to save time.

• Transferring journal entries to ledger accounts. = Posting

• The side which increases an account. = Normal account balance.

• A list of all the accounts used by a company. = Chart of an account.

A chart of accounts (COA) consists of all the financial accounts that are in the company's general ledger. It gives the the details of the financial transactions that is being conducted by a company for a particular accounting period.

• A record of increases and decreases in specific assets, liabilities, and stockholdersl items. = Account

• Left side of an account. = Debit

The debit is an entry used to record the amount that the entity owe and it is always listed on left-hand side of an account.

• An entry that involves only two accounts. = Simple entry

A simple entry is made up of two accounts while a compound entry is made up of more.

• A book of original entry. = Journal

A journal is a record of every financial transactions that a business takes part in.

• A list of accounts and their balances at a given time. = Trial balance

The trial balance consists of a list of all the general ledger accounts that is, both the revenue and capital that are contained in a business ledger.

• Has a credit normal balance = Revenue account

3 0
3 years ago
Some people advise the use of debit cards (rather than credit cards) because the use of debit cards __________.
Dmitry_Shevchenko [17]
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So the main difference is that using a credit card, people can buy more than they can actually afford, so they can have debts as a consequence.
So people advice using debit cards as a way of avoiding debts.
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Advocard [28]
This is a question that was asked on 1995 in one of the “Jeremeab” days. Did you really just ask this Annie? Haha.
4 0
3 years ago
What will be the effect on the contribution margin ratio if the selling price per unit decreases and variable cost per unit rema
RoseWind [281]

Answer:

correct answer is B) It will decrease.

Explanation:

we know that contribution margin ratio is express as

contribution margin ratio = (  Sales Revenue  - Variable Costs ) ÷ Sales Revenue    ...........................1

so here any increase  in selling price increase contribution margin

and if the selling price per unit is decreases

and variable cost per unit remain same

contribution margin ratio will decrease

so here correct answer is B) It will decrease.

7 0
3 years ago
3. Two equal-sized newspapers have overlap circulation of 10% (10% of the subscribers subscribe to both newspapers). Advertisers
Musya8 [376]

Answer:

if both the company integrates together, then this result may not be feasible and marketers must pay the firm's $19.

Explanation:

For one news paper, advertisers were willing to pay $10 for ads.

They were prepared to pay $19 to advertised in both news papers

If somehow marketers exploit and persuade the newspaper with which they negotiate on $10 they'll reach an agreement with profits and that at $9 from other newspaper as well, and if this approach works, then advertisers pay just $9 for both newspapers, which is equivalent to $9+$9=$18

Furthermore, if both the company integrates together, then this result may not be feasible and marketers must pay the firm's $19.

The company's merges give them marketability to influence and decide the cost to enhance the competitiveness of the company as competition decreases. The newspaper now has market dominance, and so it may not work to compromise tactics used by marketers. In other words, there are many more advertisers on the market than the newspaper available.

6 0
3 years ago
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