1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
jeka94
3 years ago
10

Metallica Bearings, Incorporated, is a young start-up company. No dividends will be paid on the stock over the next nine years b

ecause the firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $14 per share 10 years from today and will increase the dividend by 3.9 percent per year thereafter. If the required return on this stock is 11.5 percent, what is the current share price
Business
1 answer:
Artyom0805 [142]3 years ago
5 0

Answer:

$69.08

Explanation:

Calculation to determine the current share price?

First step is to determine the price of the stock in year 9

P9=$14/(.115− .039)

P9=$14/0.076

P9=$184

Now let determine the Current price

P0=184.00/(1+.115)^9

P0=184.00/1.115^9

P0=184.00/2.6636

P0=$69.08

Therefore the current price is $69.08

You might be interested in
Because she didn't have a piece of paper handy, mary mentally repeated the long-distance phone number over and over. mary was tr
Ira Lisetskai [31]

long-term memory, so she can recall it later

7 0
3 years ago
The appropriate section in the statement of cash flows for reporting the purchase of equipment for cash is:_______.
VikaD [51]

Answer: Investing activities

Explanation:

The appropriate section in the statement of cash flows for reporting the purchase of equipment for cash is referred to as the investing activities.

The operating activities has to do with the reporting of cash payment for wages. The financing activities has to do with reporting issuance cash for the common stock.

3 0
3 years ago
Identify the risks exist in the conversion cycle of Central Production Limited.
11111nata11111 [884]

Answer:

Authorization of transactions:- Because of unclear subjugation, there is a potential risk of entering a money transfer again and again. To minimize this, all workers should adopt the rules for specific purchases, such as maintaining a set pricing list and guarantee a limited error distance.

Explanation:

The following are the risks which currently exist in the Central Production Limited conversion cycle:-

  • Lack of a "Maker and Checker" concept:- It is important because it executes the role of a sort account executive to check that the instructions and demands presented are correct and are not replicated. It would be extremely effective that someone in a position of power and authority might supervise certain rates and with certain operations.
  • Use of Hard-copies:- The production center supervisor will temporarily suspend the use of such hard copies for each production process. It is not only a resource loss, but risks being lost or duplicated as well. It really would give them a better chance if all online requests could be collected which would be far more effective and could be seen by all stakeholders. It will also lead to better leadership and faster distribution of information.
  • Wastage:- Tests should be in place to determine why additional material is needed above the normal volume, and it should be approved by a senior authority to the superintendent of the production line.
  • Supply Chain Management:- Interactions between a variety of agencies are too many. Use an ERP (Enterprise Resource Planning) device to help in streamlining the entire process flow will serve them well.
5 0
3 years ago
A newly created design business called Smart Art is just finishing up its first year of operations. During the year, there were
vladimir2022 [97]

Answer:

Bad debts expenses shall be $ 850

Explanation:

The balance in the bad debts expense account shall be the aggregate of the amounts written off and the estimated uncollectible accounts based on ageing at the year end.

Amount written off during the year                                                 $ 650

Estimated uncollectible account provided at year end                 <u>$ 200</u>

Total Bad Debts expenses                                                               $ 850

4 0
3 years ago
Read 2 more answers
When the average price level in the united states, relative to the average price levels in other countries, rises, this tends to
vesna_86 [32]
When the average price level rise in the USA relative the to the average price levels in other countries, American products become more expensive for those countries. Hence, there will a fall in imports level. On the other hand, countries with Lowe prices should experience a rise in the price exports because their products are more price-competitive.
8 0
3 years ago
Other questions:
  • Your company has total wages of $321,000. Your revenue is $976,000. You have just read an industry journal that suggests that wa
    11·1 answer
  • Explain why income property cash flow is not the same as taxable income. Property cash flow usually differs from property taxabl
    8·1 answer
  • List at least three examples of capital as a factor of production, and explain how it is different from land.
    14·1 answer
  • Which of the following statements is true of the economic choices that consumers make
    13·1 answer
  • Sonic sells the rights to use the business name and sell its products and services to others in a given territory. This arrangem
    7·1 answer
  • Which technical review is held during the engineering and manufacturing development phase to assess the final design after the “
    8·1 answer
  • Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase
    12·1 answer
  • You have a portfolio that is invested 24 percent in Stock R, 38 percent in Stock S, and the remainder in Stock T. The beta of St
    8·1 answer
  • Assume a central bank exchanges its currency for other foreign currencies in the foreign exchange market, but does not adjust fo
    14·1 answer
  • Freeman Co. acquired another business and paid (among other amounts) $64,800 for its goodwill in 2018. On December 31, 2020, the
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!