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
Free_Kalibri [48]
3 years ago
10

The next dividend payment by Zone, Inc., will be $2.08 per share. The dividends are anticipated to maintain a growth rate of 6 p

ercent forever. If the stock currently sells for $42 per share, what is the required return
Business
1 answer:
Alexeev081 [22]3 years ago
4 0

Answer:

10.95%

Explanation:

According to the gordon growth model,

the value of stock (price) = dividend / required return - growth rate

42 = 2.08/ r - 0.06

42(r-0.06) = 2.08

2.08/42 = r - 0.06

r = 10.95%

You might be interested in
Massillon Company manufactures two models (X100 and Z300) of its product. Its departmental overhead rates have been determined a
ASHA 777 [7]

Answer:

Correct answer is option d

Overhead cost per unit

Product X100 = $825

Product Z300 =  $1400

Explanation:

Overhead cost per unit = (OAR × machine hours/labour hours per unit)

<em>Each product would be charged for overhead in each department using the overhead absorption rate applicable in each department</em>

Overhead cost per unit X100:

($50×15) +($15 × 5) = $825

Overhead cost per unit Z300

($50×25) +($15 × 10) = $1400

4 0
3 years ago
Read 2 more answers
Which is your least urgent concern if you are stranded in a remote area and must await rescue?
Karolina [17]
The least urgent concern if you are stranded in a remote area is that whether you have a shelter or a place that you could stay until the rescue arrives. It is because the most urgent concern that you have to deal with or prioritize first is your food and the materials you need to survive.
3 0
3 years ago
Read 2 more answers
Silver Co. has a $430 petty cash fund. At the end of the first month the accumulated receipts represent $66 for delivery expense
ratelena [41]

Answer:

The correct answer is credit to cash by $320..

Explanation:

According to the scenario, Journal entry of the given data are as follows:

Journal entry

Delivery expense A/c Dr $66

Merchandise inventory A/c Dr $219

Misc. Expense A/c Dr $35

To Cash A/c $320                            ( $66 + $219 + $35)

(Being reimbursement of the account is recorded )

Hence, reimbursement of the account includes  credit to cash by $320.

6 0
4 years ago
Current market prices reflect all relevant information, whether it is known publicly or privately. True or false?.
likoan [24]

<u>True.</u> Current market prices reflect all relevant information, whether it is known publicly or privately.

<h3><u>What does strong-form efficiency mean?</u></h3>

Strong form efficiency is the strictest interpretation of the efficient market hypothesis (EMH) investment theory, which claims that a stock's price takes into account all available information, whether it is public or private. Strong form efficiency advocates contend that even access to insider information cannot benefit an investment.

No matter how much study or information investors have access to, this level of market efficiency indicates that profits above typical returns cannot be realized. The majority of instances of strong form efficiency involve insider knowledge. This is due to the fact that the EMH's strong form efficiency is the sole component that incorporates confidential information.

Contrary to popular opinion, the idea contends, that possessing inside information won't help an investor achieve large market returns.

Learn more about the efficient market hypothesis (EMH) with the help of the given link:

brainly.com/question/20709287

#SPJ4

3 0
2 years ago
A company's balance sheet shows: cash $39,000, accounts receivable $45,000, equipment $80,000, and equity $87,000. What is the a
Alisiya [41]

Answer:

C. $77,000

Explanation:

Calculation for the amount of liabilities

Using this formula

Amount of liabilities=(Cash+Account receivable +Equipment) -Equity

Let plug in the formula

Amount of liabilities=($39,000+$45,000+$80,000)-$87,000

Amount of liabilities=$164,000-$87,000

Amount of liabilities=$77,000

Therefore the Amount of liabilities will be $77,000

8 0
3 years ago
Other questions:
  • Hordel Company needs to determine a markup for a new product. Hordel expects to sell 5,000 units and wants a target profit of $8
    6·1 answer
  • On december 15,2013, Rigsby Sales Co. sold a tract of land that cost $3600000 for $4500000. Rigsby appropriately uses the instal
    8·1 answer
  • At the time of liquidation. Fairchild Co. reported assets of $200,000, liabilities of $120,000, common stock of $90,000, and ret
    13·1 answer
  • "If the liabilities of a business increased $91,000 during a period of time and the owner's equity in the business decreased $38
    15·1 answer
  • The operations, management, and regulation of a financial conglomerate are the same irrespective of the types of services offere
    10·1 answer
  • 8 Time Left:112:35
    5·2 answers
  • Betty checks her e-mail at 6 AM, returns messages and telephone calls from customers by 8 AM, meets with customers during the da
    10·1 answer
  • Omitted variable bias a. will always be present as long as the regression R2 &lt; 1. b. is always there but is negligible in alm
    13·1 answer
  • Shop anywhere. Snap every receipt. Earn FREE gift cards! Sign up for Fetch with my code "GXEBG" and get 2,000 points when you sn
    5·1 answer
  • generally accepted government auditing standards define and describe three broad types of audits that may be performed: financia
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!