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Olegator [25]
2 years ago
8

Dyer Furniture is expected to pay a dividend of D1 = $1.25 per share at the end of the year, and that dividend is expected to gr

ow at a constant rate of 6.00% per year in the future. The company's beta is 1.95, the market risk premium is 5.50%, and the risk-free rate is 4.00%. What is Dyer's current stock price? Select the correct answer. a. $13.66 b. $12.32 c. $11.65 d. $12.99 e. $14.33
Business
1 answer:
amid [387]2 years ago
5 0

Answer:

$11.65

Explanation:

The first step is to calculate the return

= 4/100 + 1.95(5.50/100)

= 0.04 + 1.95(0.055)

= 0.04 + 0.10725

= 0.14725

The stock price can be calculated as follows

= 1.25/0.14725-0.04

= 1.25/0.10725

= $11.65

Hence the stock price is $11.65

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Lagle Corporation has provided the following information: Cost per Unit Cost per Period Direct materials$5.25 Direct labor$3.90
Vikentia [17]

Answer:

$16,050

Explanation:

The computation of the total amount of the period cost is shown below:

= Sales commission per unit × number of units sold + Fixed selling and administrative expense + Variable administrative expense per unit  × number of units sold

= $1.80 × 4,500 units + $6,600 + $0.30 × 4,500 units

= $8,100 + $6,600 + $1,350

= $16,050

7 0
3 years ago
PC​ Bell, a computer manufacturer that sells computer systems directly to​ customers, buys a computer chip for ​$150​, software
Stella [2.4K]

Answer:

The price is $1,540      

Explanation:

The reason is that the profit share is $1,100 and the cost includes computer chip, software and printer which are worth $150, $250 and $40.

The price can be calculated using the following formula:

Price - Cost = Profit

Here profit is $1100 and cost is $440 (150+250+40)

By putting the values we have:

Price - $440 = $1100

Price = $1100 + $440 = $1540

6 0
2 years ago
High valley antiques would like to issue new equity shares if its cost of equity declines to 10.5 percent. the company pays a co
True [87]

The price of the share would be calculated as -

Price of share = Annual constant dividend / Cost of equity

Given, cost of equity = 10.5 %

Annual constant dividend = $ 1.60

Price of share = $ 1.60 ÷ 10.50 %

Price of share = $ 15.238 or $ 15.24

8 0
3 years ago
The ________ stage of the new-product process assesses the total "business fit" of the proposed new product with the company's m
borishaifa [10]

Answer:

Business analysis

Explanation:

The business analysis refers to the analysis of the business i.e whether the product is profitable or not it contains the attributes that the company want and the consumer wants. It should be done with the help of marketing strategy and research by their taste and preference. Is this product fits with the company mission and objectives or not

So the given situation represents the business analysis stage

5 0
3 years ago
Restaurant Brands International Inc. (RBI) describes itself as follows in its first Restaurant footnote: "We franchise and opera
Tasya [4]

Answer and Explanation:

Data provided

Depreciation = $185 million

The Journal entry is shown below:-

Depreciation expense  $185 million  

      To Accumulated depreciation $185 million

(Being depreciation expenses is recorded)

Here we debited depreciation expense as expenses are increasing whereas we credited the accumulated depreciation as the assets decreasing.

5 0
3 years ago
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