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
maw [93]
2 years ago
6

A stock paid $2.64 in dividends at the end of last year and is expected to pay a cash dividend

Business
2 answers:
Sindrei [870]2 years ago
4 0

Answer:

$117.26

Explanation:

Easy.

katrin [286]2 years ago
3 0

Answer:

value of the common stock is $117.26

You might be interested in
Manufacturing costs from a scraped poor-quality product are $6000 per year. AN investment in an employee training program can re
romanna [79]

Answer:

We see that Prog A will give an annual CF of 75%*$6000 = $4500

Prog B will give annual CF of 95%*$6000 = $5700

Disc Rate Kd = 20%

So PV of Annuity of $1 for 5 yrs with Kd = 20% is 2.9906

So NPV of Prog A = CF0+CF1+ ....+Cf5 = -12000+2.9906*4500 = $1,458

So NPV of Prog B= CF0+CF1+ ....+Cf5 = -20000+2.9906*5700 = $(2,954)

So Prog A is more effective as it gives a Positive NPV

8 0
3 years ago
The minimum salary for a running back is $1.35 million per year. One of the Whalers' running backs was hurt during the last game
Reil [10]

Answer: 2

Explanation: $2.7 million divided by $1.35 million is 2.

8 0
3 years ago
Our company manufactures and sells calculators for $90 each. A major University has offered us $70 per calculator for a one-time
sergiy2304 [10]

Answer:

Increase in operating income by $5,000

Explanation:

Firstly, we shall compute the additional cost of this order,

Variable Cost = Direct material + Direct Labor + Variable factory overhead

= $25 + $20 + $15 = $60

Note: Fixed cost will not form part of this decision, as the company has additional capacity lying idle, thus no additional fixed cost will be incurred, and the fixed cost allocated i.e. $12 per unit is not relevant, as is just allocation and not incurred, it is a kind of sunk cost allocated.

Relevant cost = $60 per unit

Selling price per unit = $70 per unit

Contribution to profit = $70 - $60 = $10 per unit

Total increase in operating income = $10 \times 500 = $5,000

Thus operating income will increase by this amount.

Increase in operating income by $5,000

8 0
3 years ago
Which one of the following businesses would be the most difficult to get funding for
Gennadij [26K]
You have not suggested a list considering your question asks "..following businesses..."
8 0
2 years ago
The firm's tax rate is 34 percent. The firm's pre-tax cost of debt is 8 percent; the firm's debt-to-equity ratio is 3; the risk-
MAVERICK [17]

Answer:

WACC = 0.08085  or  8.085% rounded off to 8.09%

Option c is the correct answer.

Explanation:

The WACC or weighted average cost of capital is the cost of a firm's capital structure that can contain one or more of the following components, namely debt, preferred stock and common equity. The formula to calculate the WACC is as follows,

WACC = wD * rD * (1-tax rate)  +  wP * rP  +  wE * rE

Where,

  • w represents the weight of each component
  • D, P and E represents debt, preferred stock and common equity respectively
  • r represents the cost of each component

We first need to calculate the weight of each stock. We know the basic accounting equation is,

Assets = Debt + Equity

We know the debt to equity ratio is 3. Then total assets will be,

Assets = 3 + 1

Assets = 4

Using the CAPM equation, we can calculate the cost of equity.

r = risk free rate  +  Beta  *  Market risk premium

r = 0.03  +  1.5  *  0.09

r = 0.165  or  16.5%

WACC = 3/4  *  0.08  *  (1 - 0.34)  +  1/4  *  0.165

WACC = 0.08085  or  8.085% rounded off to 8.09%

4 0
2 years ago
Other questions:
  • Describe how winning the world series can rapidly increase the supply of a baseball team souvenirs
    5·1 answer
  • After a hurricane in florida destroys half of the orange crop, economists predict:
    14·1 answer
  • Axtara, an automobile manufacturer, has several factories in foreign countries. The management strongly believes in giving prece
    8·1 answer
  • For incentive pay to motivate employees to contribute to the organization's success, the pay plans must be well designed. Which
    8·1 answer
  • nuary 1, Campanella Inc. issued $4,000,000, 8% bonds for $3,756,000. The market rate of interest for these bonds is 10%. Interes
    13·1 answer
  • The bank you own has the following balance sheet: Assets Liabilities Reserves $75 million Deposits $500 million Loans $525 milli
    15·1 answer
  • While writing a formula, what are some ways to insert a cell reference into the formula? Check all that apply
    12·2 answers
  • How has information technology impacted the economy? choose three answers. it has allowed economists to better predict how resou
    12·1 answer
  • _______________operate as for-profit or not-for-profit organizations that facilitate, promote, or encourage B2B relationships be
    5·1 answer
  • Supplies that are not used immediately are recorded as a(n) ______ when purchased.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!