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Liula [17]
3 years ago
10

Leslie's Unique Clothing Stores offers a common stock that pays an annual dividend of $2.40 a share. The company has promised to

maintain a constant dividend. How much are you willing to pay for one share of this stock if you want to earn a return of 15.70 percent on your equity investments?
Business
1 answer:
Blizzard [7]3 years ago
5 0

Answer:

The maximum amount that should be paid for one share of this stock today is $15.29

Explanation:

The price of a stock which pays a constant dividend forever can be calculated using the zero dividend growth model of the Dividend Discount Model (DDM) approach. The DDM values a stock based on the present value of the expected future dividends from the stock discounted using the required rate of return on stock.

The formula for price under zero growth model of DDM is,

Price today (P0) = Dividend / required rate of return

P0 = 2.4 / 0.1570

P0 = $15.286 rounded off to $15.29

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Which of the following items does not result in an adjustment in the merchandiseinventory account under a perpetual system?
pychu [463]

Answer:

c.Payment of freight costs for goods shipped to a customer

Explanation:

In the inventory account management using the perpetual system, whenever there is an event that may result in a change in the carrying value of inventory, the quantity of the change is immediately determined and adjusting entries are posted.

Examples of such events include purchase of merchandise inventory, return of merchandise inventory to the supplier, .Payment of freight costs for goods received from a supplier (this forms part of the cost of inventory).

From the options given, the only entry that will not result in an adjustment to inventory is c.Payment of freight costs for goods shipped to a customer. This will form part of the selling and distribution cost under operating expenses.

3 0
3 years ago
Which of the following would be considered the highest risk portfolio
algol [13]
The option that would be considered the highest risk portfolio is a<span> portfolio made up of 60% stocks, 30% mutual funds, and 10% Treasury bonds.
There is a lot of risks when investing in anything, because you pay a lot of money for something that may not be a wise idea, because in the end, you may lose a lot more than you get.
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3 0
3 years ago
Read 2 more answers
Mrs. Torres goes out of town on a business trip. She spends 3 nights in a hotel at a charge of $80 per night. She pays 9% tax on
Bumek [7]
We are given the different rates and charges and is asked in the problem the unknown tax rate she pays on meals if the total cost of the trip is equal ot $420.04. In this case, the equation goes: 
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6 0
3 years ago
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Suppose Czech businessmen began purchasing American properties. How would this impact the foreign exchange market for the koruna
Yanka [14]

Answer:

B. Appreciate / Depreciate / Decrease

Explanation:

If the businessmen want to purchase some American Properties them will need to exchange the Koruna by the Dollar, it means Sell Koruna to buy dollar,which is,  increase the Koruna supply and increase the demand by dollars.

It exchange will appreciate the dollar value because of an increase in the Dollar demand as the supply keeps at the same level.

While the Czech Koruna will see its price decrease because of the increase in the supply of Koruna while the demand of Koruna keeps at the same level,

In the meantime, the American Export see their market negatively affected by the increase in the dollar price, as the dollar increase its value and will be more difficult to the Americens sell their products to the rest of the world, because others countries need more money for each dollar.

4 0
3 years ago
Suppose the government decides that every family should own its own home. To bring this about, the government decides to subsidi
stira [4]

Answer:

d. the supply curve of new houses would shift rightward, since builders would be willing to produce and sell more houses at each given price.

Place more oil on the market this year, shifting the curve rightward.

Explanation:

1. In the given scenario the government is willing to give home-construction companies $10,000 for every house that they build.

This will result in more willingness on the part of the construction companies to build more houses.

More houses built means more income coming in from the government.

Therefore the supply curve of home building will shift to the right.

2. When oil producers expect prices of oil to increase in the next year, there is a need to control oil prices by increasing availability of oil in the market.

Increase in price results from a scarcity of oil. So to mitigate this excess oil is supplied to control price increase.

This action will shift the curve rightward.

6 0
3 years ago
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