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3 years ago

5

A company paid $0.85 in cash dividends per share. Its earnings per share is $3.50, and its market price per share is $35.50. Its

dividend yield equals:___.
a. 2.0%.
b. 2.4%.
c. 9,9%.
d. 21.4%.
e. 24.2%.

1 answer:

mr_godi [17]3 years ago

7 0

Answer:

B

Explanation:

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Which best describes the difference between sole proprietorships and partnerships?

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Sole proprietorship has a single owner while partnerships has two or more owners.

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Godfrey Corporation holds, as a long-term investment available-for-sale securities costing $69,000. At December 31, 2017, the fa

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Answer:

Godfrey Corporation

GOLDFREY CORPORATION

Balance Sheet (Partial)

December 31, 2017

Noncurrent assets:

Investments:

Investment In Stock, at fair value $64,100

Stockholders' Equity:

Common stock

Retained earnings

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Unrealized loss $4,900

Explanation:

a) Data and Calculations:

Long-term investment available for sale:

Cost = $69,000

Fair value 64,100

Unrealized loss $4,900

b) The correct entry would have been to reduce the net income by the unrealized loss. However, for simplicity, this is showed as a reduction of the Retained Earnings in the balance sheet.

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3 years ago

In 1896, the first Green Jacket Golf Championship was held. The winner’s prize money was $160. In 2015, the winner’s check was $

Talja [164]

Answer:

r = 0.080528395 = 8.05%

Winner's Prize at 2044: $ 15,215,114.02

Explanation:

$Principal \: (1+ r)^{time} = Amount$

Principal 160

Amount 1,610,000

time: 2015 - 1896 = 119

$160 \: (1+ r)^{119} = 1,610,000\\ r = \sqrt[119]{1,610,000 / 160} -1$

r = 0.080528395

If the same rate for the winner's prize is being keep by 2044 the winner will get:

$Principal \: (1+ r)^{time} = Amount$

Principal 1,610,000.00

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3 years ago

At AgroCorp, each owner has unlimited liability for the debts of the business. It has several business units that focus on many

Rus_ich [418]

Answer:

general partnership

Explanation:

General partnership -

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All the partner have equal rights on the profit ,loss , and all the financial decisions and income tax .

There are unlimited liability , and any of the partner can be sued for any type of business debts .

Hence , from the given scenario of the question ,

The correct term is general partnership .

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3 years ago

Universal Laser, Inc., just paid a dividend of $3.10 on its stock. The growth rate in dividends is expected to be a constant 6 p

Vadim26 [7]

Answer:

Ans. The current price of the stock is $56.82

Explanation:

Hi, well, the problem here is that we have different discount rates, in other words the required rate of return for the stock changes several times, therefore we are going to break this problem in 3 parts, or bring to present value all the cash flows in 3 steps. Let´s start with the value of the dividends.

We have to use the following formula.

$Dn=D_{(n-1)} *(1+g)$

Where, D(n-1) is last dividend and Dn is the dividend that we are looking for, for example, D1 = 3.10*(1+0.06)=3.29, D2=3.29*(1+0.06)=3.48, and so forth. The amount to pay on dividends per share is,

D1=3.29; D2=3.48; D3=3.69; D4=3.91; D5=4.15; D6=4.40; D(7)=4.66

Since the first 3 years are to be discounted at a 15%, this is how the formula should look like.

$PV(1)=\frac{D1}{(1+r(1))^{1} } +\frac{D2}{(1+r(1))^{2} } +\frac{D3}{(1+r(1))^{3} }$

$PV(1)=\frac{3.29}{(1+0.15)^{1} } +\frac{3.48}{(1+0.15)^{2} } +\frac{3.69}{(1+0.15)^{3} }=7.92$

Now, for the second part, we have to bring all cash flows to year 3 at r(2)=13% and then bring it to present value at r(1)=15%. This is because we have 2 different discount rates, this is as follows.

$PV(2)=(\frac{D4}{(1+r(2))^{1} } +\frac{D5}{(1+r(2))^{2} } +\frac{D6}{(1+r(2))^{3} })*\frac{1}{((1+r(1)^{3} }$

$PV(2)=(\frac{3.91}{(1+0.13)^{1} } +\frac{4.15}{(1+0.13)^{2} } +\frac{4.40}{(1+0.13)^{3} })*\frac{1}{(1+0.15)^{3} } =6.42$

Finally, we need to bring all the future cash flows from year 7 and beyond, notice that we need to use the return rate r(3) to bring everything to year 6, then we have to bring it to year 3 and then to present value, everything as follows.

$PV(3)=(\frac{D7}{(r(3)-g)} )*(\frac{1}{(1+r(2))^{3} } )*(\frac{1}{(1+r(1))^{3} } )$

$PV(3)=(\frac{4.66}{(0.11-0.06)} )*(\frac{1}{(1+0.13)^{3} } )*(\frac{1}{(1+0.15)^{3} } )=42.48$

So, the price of the stock is PV(1) + PV(2) + PV(3), or:

$Price=7.92+6.42+42.48=56.82$

Price= $56.82/share

Best of luck.

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3 years ago