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Oduvanchick [21]
2 years ago
5

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:
ivanzaharov [21]2 years ago
3 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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Answer: . two-stage area

Explanation:

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3 years ago
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Yakvenalex [24]

Answer:

It is cheaper to make the part in house.

Explanation:

Giving the following information:

Harrison Enterprises currently produces 8,000 units of part B13.

Current unit costs for part B13 are as follows:

Direct materials $12

Direct labor 9

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Administrative costs 10

General factory overhead (allocated) 7

Total $45

If Harrison decides to buy part B13, 50% of the administrative costs would be avoided.

To calculate whether it is better to make the par in-house or buy, we need to determine which costs are unavoidable.

Unavoidable costs:

Factory rent= 7

Administrative costs= 5

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Unitary cost= direct material + direct labor + avoidable administrative costs

Unitary cost= 7 + 5 + 5= $17

It is cheaper to make the part in house.

3 0
3 years ago
Black market dealers are often legitimate businesses with questionable and illegal practices. (points : 2) true false
amm1812
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Can I have a short 150 words paragraph about following?
hichkok12 [17]

Answer:

Explanation:

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