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timofeeve [1]
3 years ago
6

The U.S. Treasury has Kleine Toymakers is introducing a new line of robotic toys, which it expects to grow their earnings at a m

uch faster rate than normal over the next three years. After paying a dividend of $2.00 last year, it does not expect to pay a dividend for the next three years. After that Kleine plans to pay a dividend of $4.00 in year 4 and then increase the dividend at a rate of 10 percent in years 5 and 6. What is the present value of the dividends to be paid out over the next six years if the required rate of return is 15 percent

Business
1 answer:
nevsk [136]3 years ago
6 0

Answer:

The present  value of the dividends to be paid out over the next six years if the required rate of return is 15 percent is $6.57

Explanation:

Solution:

Given that

The present value =∑ ⁿ t=1 cf/ (1 +r)t

where cf= cash flow

r =the required rate of return

t = the number of years

Now

The present value will be:

cf₁/(1+r)^1 + cf₂/(1 +)^2 + cf₃/(1+r)3 + cf₄/(1 +r)^4) + cf₅/(1 +r)^5 + cf₆/(1+r)^6

Hence,

cf₁, cf₂ cf₃ = 0 as the firm does not expect to pay dividend in the next three years

Note: Kindly find an attached document of the part of the solution to this given question

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Interest rate​ (with changing​ years). Keiko is looking at the following investment choices and wants to know what annual rate o
Ivenika [448]

Answer:

a. 5.18%;

b. 10.12%;

c. 6.32%;

d. 9.22%.

Explanation:

We apply the formula of Annual rate of return to calculate for the four cases.

The formula for calculating annual rate of return as below:

Annual rate of return = \sqrt[year]{Ending value/Beginning value} -1 ;

So, for each of the case given, by applying the formula, the detailed calculations for each case will be:

+ For case a :

\sqrt[12]{769.5/420} -1 = 5.18%;

+ For case b:

\sqrt[14]{11,567.45/3,000} -1 = 10.12%;

+ For case c:

\sqrt[20]{110,000/32,303.47} -1 = 6.32%;

+ For case d:

\sqrt[40]{1,100,000/32,275.63} -1 = 9.22%.

4 0
3 years ago
Consider Derek's budget information: materials to be used, $64,750; direct labor, $198,400; factory overhead, $394,800; work in
natita [175]

Answer:

Option (c) is correct.

Explanation:

Given that,

Materials to be used = $64,750;

Direct labor = $198,400;

Factory overhead = $394,800;

Work in process inventory on January 1, = $189,100;

Work in progress inventory on December 31, = $197,600

Firstly, we are calculating the manufacturing cost by adding direct material, direct labor cost and factory overhead. It is calculated as follows:

= Direct material + Direct labor + Factory overhead

= $64,750 + $198,400 + $394,800

= $657,950

Cost of goods manufactured determine the value of goods produced during a period of time. It refers to the cost that is incurred to convert the raw material into the finished goods.

Therefore, the cost of goods manufactured is calculated as follows:

= Manufacturing cost + Opening work in process - Closing work in in process inventory

= $657,950 + $189,100 - $197,600

= $649,450

3 0
3 years ago
What gives the us government the right to collect taxes?
irakobra [83]
The sixteenth amendment 
8 0
3 years ago
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Absorbing markov chains are used in marketing to model the probability that a customer who is contacted by telephone will eventu
zhannawk [14.2K]
<span>Absorbing markov chains are used in marketing to model the probability that a customer who is contacted by telephone will eventually buy a product. consider a prospective customer who has never been called about purchasing a product.</span>
8 0
3 years ago
1. One of the major changes resulting from managed care is the requirement of providers to assume accountability for: A. The tre
11111nata11111 [884]

Answer:

The correct answer is B) The appropriateness of interventions

Explanation:

Managed care is evolving in many countries around the world.

One of the ways in which changes are becoming more prevalent is in the managed care industry is that due to competition, that players are beginning to take seriously the quality of health care being given to enrollees.

All of this is happening simultaneously with the bid to provide these services at the lowest cost possible with providers playing for marketing share.

In Managed care, if customers are treated fairly, they are most likely to return thus creating the possibility for sustained organic growth.

Cheers!

4 0
3 years ago
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