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algol13
2 years ago
11

Universal Air is a no-growth firm and has two million shares outstanding. It expects to earn a constant $20 million per year on

its assets. If it has no debt, all earnings are paid out as dividends, and the cost of capital is 10 percent, calculate the current price per share of the stock.
Business
1 answer:
Whitepunk [10]2 years ago
5 0

Answer:

$100/share

Explanation:

Calculation to determine the current price per share of the stock.

First step

EPS = DPS = $20,000,000/($20,000,000*10%)

EPS = DPS = $20,000,000/$2,000,000

EPS = DPS = $10 per share

Now let determine the current price per share of the stock

P0 = 10/0.10

P0= $100/share

Therefore current price per share of the stock is $100/share

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On April 11 of the current year, Zack Corporation had a market price of $48 per share of common stock. Its par value was $10 per
ki77a [65]

Answer:

8%

Explanation:

Dividend yield is a measure of business performance, used by investors which compares dividend paid by a stock to its market share.

Given the above information,

Dividend yield = $3.90/$48 × 100 = 8.13%

4 0
2 years ago
A gold processor has two sources of gold ore, source A and source B. In order to keep his plant running, at least three tons of
vfiekz [6]

Answer:

that is letter A

Im sorry beacause wrong

3 0
3 years ago
What will happen to a typical isoquant if robots become increasingly good at doing manual and mental labor?A. Isoquants will bec
Troyanec [42]

Answer:

C. Isoquants will become much flatter.

Explanation:

An isoquant which from Latin maeans "equal quantity"can be regarded as counterpart of the consumer's indifference curve of a company, it is curve which shows some kind of consistent amount of output. It can be known with it's negative slope. With isoquant all the inputs that gives rise to the same level of output can be known

Therefore, in a case whereby robots become increasingly good at doing manual and mental labor then a typical isoquant will become much flatter.

4 0
3 years ago
Suppose the government imposes a tax of 10 percent on the first $40,000 of income and 20 percent on all income above $40,000. Wh
yan [13]

Answer:

total tax liability = $6,000

marginal tax rate = 20%

Explanation:

total tax liability = ($4,000 x 10%) + [($50,000 - $40,000) x 20%] = $4,000 + $2,000 = $6,000

The marginal tax rate is the tax rate applicable to an additional dollar of income. Since the $50,000 income falls into the second bracket, the marginal tax rate is 20%.

8 0
3 years ago
I believe this is business but idk but if anyone could help me with this that would be amazing
s2008m [1.1K]

The correct answer is a Car salesman

Explanation:

Event planners are professionals in planning and organizing events, which includes weddings, conferences, birthday parties, festivals, among others. Moreover, planning events involves multiple elements such as music, food, decoration, among others and this makes event planners be in contact with vendors (companies or people that sell specific products or services).

In this context, an event planner is likely to be in contact with musicians because music is an essential element in many events, caterers because food is quite common in events, and florists because flowers are often used as part of the decoration. However, it is not likely event planners are in contact with a car salesman because most events do not require buying cars and this is not a common element in events.

6 0
3 years ago
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