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3 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]3 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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Harold Manufacturing produces denim clothing. This year, it produced 5,290 denim jackets at a manufacturing cost of $42.00 each.

Lerok [7]

Answer:please see answer below

Explanation:

Alternative 1 ----sell told a second hand shop

Incremental revenue=5,290*8= f $42,320

Incremental cost=0

Incremental incomea Revenue -cost =$ 42,320

Alternative 2,---disassembling and sell to recycler

Incremental Revenue=5290*11=58,190

Incremental cost 32,220

Incremental income Revenue-cost=58190-32220=$ 25,990

Alternative 3 Reworking to sell at normal price

Incremental revenue =45*2950= 132, 750

Incremental cost=102,500

Incremental income=132,750-102,500= $ 30250

Incremental income for the three alternatives is given as

Ist alternative to sell to second hand shop= $ 42,320

2nd alternative to dissemble and sell to recycler= $ 25,990

3rd alternatively rework to sell at regular price= $ 30,250

5 0

3 years ago

Read 2 more answers

Which labor market strategy is an organization most likely to pursue if it is experiencing a shortage of funds or has a sufficie

avanturin [10]

Answer:

First quartile labor market strategy

Explanation:

In the case when the organization wants to pursue when the organization is experiencing a funds shortage or has the enought number of workers or the rates of the unemployment is quite high

So this situation represents the first quartile labor market strategy

hence, the same is to be considered

Therefore the above is the answer

4 0

2 years ago

Ketchem Corp., a cash basis taxpayer, and Catcham Corp., an accrual basis taxpayer, are parent-subsidiary corporations. In Janua

Softa [21]

Answer: B. $770,000

Explanation:

The taxable income that they would report on the consolidate tax return would be $770,000 ($600,000 + $120,000 + $50,000)

The reason why we have added $50,000 is because the Ketchem sold $50,000 worth of supplies to Catcham and Catcham were able to pay that amount within 20 days. That is in the month of November.

Also, the consolidated report is to be made after December 27, therefore, we will include this transaction as it was before 27th December.

7 0

3 years ago

1. An 80%-owned subsidiary sells land to its parent at a gain of $100,000. The following year, the parent sells the land to an o

EastWind [94]

Answer:

The answer is ""D

Decrease of $22,000

Explanation:

Parents and subsidiary may sell non-current asset s to each other, resulting i n a profit being recorded in the selling ent ity's financial statements.

If these non- current assets are still held by the purchasing entity at the y ear-end, the profit is unrealised from the gr oup’s perspective and should be removed.

The NCI calculation would include an adjustment to reduce the subsidiary's profit by $100,000 to eliminate the profit on disposal of the intra-group transfer.

The NCI would be decreased by $100,000*20% = $20,000 and the gain on disposal $10,000*20% = $2,000

The NCI would be decreased by = $20,000 + $2,000 = $22,000

4 0

3 years ago

6. Concerned about the crowding-out effects of government borrowing on private investment spending, a candidate for president ar

Molodets [167]

Answer:

The overview of the specific issue is outlined in the following section on the explanation.

Explanation:

Mostly during the Great Recession, the crowding outside from private sector investment because of govt spending on financial services spending seemed to be disqualified. But because the economy is growing although interest rates are rising, government spending could theoretically build pressure on inflation.

The advantage and disadvantage of the above is given below.

<u>Advantage:</u>

Avoids the crowding out .

<u>Disadvantage:</u>

Growing unemployment or inflation.

3 0

3 years ago