The following information relates to last year's operations at the Legumes Division of Gervani Corporation:

The stock price of Baskett Co. is $54.20. Investors require a return of 12 percent on similar stocks. If the company plans to pa

Alchen [17]

Answer:

5.08%

Explanation:

using the Gordon growth model we can calculate the expected growth rate:

current stock price = dividend / (required rate of return - growth rate)

$54.20 = $3.75 / (12% - g)

12% - g = $3.75 / $54.20

12% - g = 6.92%

g = 12% - 6.92% = 5.08%

5 0

3 years ago

The president of a poor country has announced that he will implement the following measures that he claims are designed to incre

Studentka2010 [4]

Answer:

The correct answer is number (2): Reduce reliance on market forces because they allocate goods and services in an unfair manner.

Explanation:

Relying on market forces imply letting supply and demand freely decide the levels of quantity demanded and supplied goods and services and their corresponding prices. This scenario could lead to unfair market competition and inhuman labor standards. For that reason, government intervention is necessary to set fair rules for organizations and individuals within society.

3 0

3 years ago

Pina Colada Corp. holds Tamarisk, Inc. $44400, 120-day, 15% note. The entry made by Pina Colada Corp. when the note is collected

Dafna1 [17]

Answer and Explanation:

The journal entry is shown below

Cash $46,620

To Notes Receivable $44,400

To Interest receivable ($44,400 × 15% × 120 days ÷ 360 days)

(Being the cash received is recorded)

Here we debited the cash as it increased the assets and at the same time we credited the interest receivable and the note receivable as it decreased the assets

The same is to be considered

7 0

3 years ago

Agassi Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to

Juliette [100K]

Answer:

Results are below.

Explanation:

To calculate the predetermined overhead rate, we need to use the following formula on each department:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Department D:

Predetermined manufacturing overhead rate= 1,197,000 / 1,496,250

Predetermined manufacturing overhead rate= $0.8 per direct labor dollar

Department E:

Predetermined manufacturing overhead rate= 1,500,000 / 125,000

Predetermined manufacturing overhead rate= $12 per direct labor hour

Department K:

Predetermined manufacturing overhead rate= 720,000 / 120,000

Predetermined manufacturing overhead rate= $6 per machine hour

6 0

3 years ago

If the federal reserve sells securities on the open market, how are the purchases of u.s. financial assets by foreigners and the

Ne4ueva [31]

If the federal reserve sells securities on the open market, purchases of US financial assets by foreigneres will increase which will increase interest rate and appreciate international value of dollar. So my answer would be : increase / increase

3 0

4 years ago