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algol13
3 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]3 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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D , because liability means to be responsible for something, especially by law.
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in a class of p student the average mark is n and in another class of q student the average mark is n. calculate the average mar
lesantik [10]

Answer: The average mark is n.

Explanation: The average mark is a average of averages. The average mark of class of p student is n, and q student is n, so n+n/2= 2n/2=n.

4 0
3 years ago
An employee quits her job where she has a balance of $10,000 in her qualified plan. The balance was paid out directly to the emp
yawa3891 [41]

Answer:

$8,000, and she has to complete 60 days

Explanation:

Whenever money has to be taken out of the first plan, then it is the requirement of IRA to complete the rollover within 60 days, also the amount to be withheld is 20% this is in the case where the amount is directly paid o the concerned participant. Then the person concerned for such payment has to keep 20%

Here in the instance Total amount = $10,000

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3 0
3 years ago
According to the specifications that a customer gave to a manufacturer, the length of a shoe should not deviate from the correct
vichka [17]

Answer:

Capability ratio = 1.04166

Explanation:

Given:

Length of a shoe (not deviate) = 1 mm

Standard deviation of this length = 0.32 mm

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Find:

Capability ratio = ?

Computation:

Capability ratio = [Length of a shoe (not deviate) / Standard deviation of this length] / Number of standard deviations

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4 0
3 years ago
Crane Company borrowed $750000 from BankTwo on January 1, 2019 in order to expand its mining capabilities. The 5-year note requi
Daniel [21]

Answer:

The interest expense of $59,463  must be recognize on its 2020 income statement.

Explanation:

With the given data make an amortization schedule

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N = 5

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<em>Input the elements in a Financial Calculator.</em>

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Conclusion :

The interest expense of $59,463  must be recognize on its 2020 income statement.

7 0
3 years ago
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