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2 years ago

What is the price of a stock today if it pays a Dividend TODAY of $2. Its growth rate is 5%, and its market return is 12%?

Business

1 answer:

Nutka1998 [239]2 years ago

8 0

Answer:

$30.00

Explanation:

The price of the stock can be derived from the stock theoretical price formula given and explained below:

stock price=expected dividend/(market return-growth rate)

expected dividend=dividend paid today*(1+growth rate)

expected dividend=$2*(1+5%)

expected dividend=$2.10

market rate of return=12%

growth rate=5%

stock price=$2.10/(12%-5%)

stock price=$2.10/7%

stock price=$30.00

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lozanna [386]

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Describe an annuity.

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1 year ago

Castillo Company has a defined benefit pension plan. At the end of the reporting year, the following data were available: beginn

Luda [366]

Answer:

$23,000

Explanation:

Before recording the journal entry, first we have to determine the pension expense amount which is shown below:

Pension expense = service cost + interest cost - expected return on plan assets

= $18,000 + $5,000 - $10,000

= $13,000

Now the journal entry would be

Pension expense A/c Dr $13,000

Plan asset A/c Dr $10,000

To PBO A/c $23,000

(Being the annual pension cost is recorded)

All other information which is given is not relevant. Hence, ignored it

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3 years ago

Fire Chief McGuire could see the problem from a mile away. Flames were leaping out of the old barn, blown by a west wind. Arrivi

EastWind [94]

Answer:

The correct answer is dominating.

Explanation:

Generally, different definitions of "social conflict" are offered, differences that call our attention to complementary aspects of the concept: For example, Stephen Robbins: "A process that begins when one party perceives that another has affected it negatively or that It is about to negatively affect some of its interests ”2 and that of Lewis A. Sew for whom the social conflict is a struggle for values and for the status, power and scarce resources, in the course of which opponents want to neutralize, damage or eliminate their rivals. A conflict will be social when it transcends the individual and comes from the structure of society itself.

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3 years ago

The master budget of Swifty Corporation shows that the planned activity level for next year is expected to be 50000 machine hour

densk [106]

Answer:

Total Manufacturing Overheads = $1198,333

Explanation:

Machine Supplies would vary with the new level of machine hours. therefore flex the overheads to obtain the budgeted manufacturing overheads.

Note ; Depreciation remains constant as this is not affected by new level of machine hours

Total manufacturing overhead costs at a level of 60000 machine hours

Indirect labor (780,000 /50,000×60,000) 650,000

Machine supplies ($250000/50,000×60,000) 208,333

Indirect materials (180,000/50,000×60,000) 150,000

Depreciation on factory building 190,000

Total Manufacturing Overheads 1198,333

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3 years ago

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DochEvi [55]

Answer:

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Explanation:

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3 years ago