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Bad White [126]
2 years ago
7

Santa Klaus Toys just paid a dividend of $3.00 per share. The required return is 11.7 percent and the perpetual dividend growth

rate is 3.9 percent. What price should this stock sell for five years from today?
Business
1 answer:
givi [52]2 years ago
6 0

Answer:

P5=48.3860

Explanation:

Santa Klaus Toys

The Price of the stock 5 years from today will be :

P5=D6/(r-g)=

D0*(1+g)^6/(r-g)

Where

D0 =3

g =3.9%

r=11.7%

Hence:

P5=3*(1+3.9%)^6/(11.7%-3.9%)

P5=3*(1+0.039)^6/(0.117-0.039)

P5=3*(1.039)^6/(0.078)

P5=3.77410/0.078

P5=48.3860

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3 years ago
Columbia Products produced and sold 1,200 units of the company’s only product in March. You have collected the following informa
Leya [2.2K]

Answer:

1. $70

2. $106.42

Explanation:

(1) Variable manufacturing cost per unit:

= Direct labor + Direct material + Variable overhead

= $10 + $34 + $26

= $70

(2) Full cost per unit:

= Direct labor + Direct material + Variable overhead + Variable selling cost + (Fixed ÷ 1,200)

= $10 + $34 + $26 + $5 + [(19,500 + 18,200) ÷ 1,200)]

= $75 + $31.42

= $106.42

8 0
3 years ago
Sourcing a supply from a small, women-owned business is an example of a corporate social responsibility action to A. E) protect
topjm [15]

Answer:

promote workforce diversity.

Explanation:

Corporate Social Responsibility pertains to corporate responsibility towards society to achieve its goals, missions, and targets.

The organisation could not operate for a longer time without the company's permission because it would harm the community well-being and eventually the organisation needs to shut down its operations.

And we promote or motive or encourage the workforce diversity then it would be an example of corporate social responsibility by considering a supply from a small, owned business

7 0
3 years ago
Competition between banks and nonbanks, such as insurance companies and pension funds, has?
Troyanec [42]

Competition between banks and nonbanks, such as insurance companies and pension funds, has not changed in 50 years, since the creation of the Federal.

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In 2012, PricewaterhouseCoopers estimated that pension funds held more than $33.9 trillion in assets worldwide (expected to exceed $56 trillion by 2020), with mutual funds, insurance companies, and foreign exchange reserves It is the largest category of institutional investors, surpassing gold and sovereign wealth. funds, hedge funds, or private equity; With $2.66 trillion in assets under management, the Federal Endowment Trust Fund is the world's largest public pension fund.

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6 0
2 years ago
Companies that have preferred stock outstanding promise to pay a stated dividend for an infinite period. Preferred stock is trea
mel-nik [20]

Answer:

$74.63 per share

Explanation:

The computation of the value of preferred stock is shown below:

As we know that  

Value of the preferred stock = Annual dividend rate ÷ Returns on the stock

where,

Dividend on the preferred stock = Dividend rate × Par value

= 11% × $100

= $11

And, the return is 14.74%

So, the value of the preferred stock is  

= $11 ÷ 14.74%

= $74.63 per share

6 0
3 years ago
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