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Helen [10]
3 years ago
7

The next dividend payment by Hot Wings, Inc., will be $4.25 per share. The dividends are anticipated to maintain a 3 percent gro

wth rate forever. Required:If the stock currently sells for $59 per share, what is the required return
Business
1 answer:
NARA [144]3 years ago
8 0

Answer:

10.20%

Explanation:

According to the Gordon constant growth model :

value = D1 / r - g

D1 = next dividend = $4.25

r = required return

g = growth rate = 3%

value = $59

$59 = $4.25 / r - 0.03

4.25 / 59 = r - 0.03

0.072034 = r - 0.03

r = 0.102034

r = 10.20%

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Total expected units produced 6,000 3,000 Total expected material moves 500 100 Expected direct labor-hours per unit 6 9 The tot
andrezito [222]

The total materials handling cost allocated to the wall mirrors is closest to: $5,103.

<h3>Total materials handling cost: </h3>

First step is to calculate the total expected material moves:

Total expected material moves= 500+100

Total expected material moves= 600

Second step is to calculate  the total material handling cost allocated to  wall mirrors:

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Inconclusion the total materials handling cost allocated to the wall mirrors is closest to: $5,103.

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4 0
3 years ago
Once a new fashion becomes popular with the lower classes, what would the upper classes do as per the Traditional Adoption theor
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3 years ago
Barron, Inc. is considering a four-year project that has an initial outlay or cost of $90,000. The future cash inflows from its
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Answer:

D. The IRR is about 22.80%

Explanation:

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