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
Alborosie
3 years ago
8

You expect Technomess Company common stock to pay a dividend of $2.40 one year from now. You can buy the stock now for $52, and

you plan to sell the stock at the end of one year. Given the risk of the stock, your required rate of return is 16%. For what price would you need to sell your stock in one year in order to earn your required rate of return
Business
1 answer:
Vinil7 [7]3 years ago
4 0

Answer:

The stock price = $57.92

Explanation:

The return on a stock is the sum of the capital gains(loss) plus the dividends earned.

Capital gain is the difference between he value of the stocks when sold and the cost of the shares when purchased.

Total shareholders Return =  

(Capital gain/ loss + dividend )/purchase price × 100

16% = ((x-52) + 2.40)/52

0.16×52 = (x-52) + 2.40

8.32 = X- 52 + 2.40

52+8.32-240=X

57.92 = X

$57.92= X

The stock would need to be sold for  = $57.92

You might be interested in
Sales taxes are A. based on each individual​ taxpayer's income level. B. levied on purchases of a particular good or service. C.
Elan Coil [88]

Answer:

B. levied on purchases of a particular good or service.

Explanation:

  • A sales tax is a tax that is given to the government body and is provided to the production of the particular goods and the services and its a set of the sales.
  • The crucial good and services and at the point of the purchase, and is directed by the consumers and is called as used tax. And includes the manufacturer's sales and wholesales tax and gross receipt and exercise tax and values added tax.
4 0
3 years ago
Which of the following expresses the value of a levered firm (VL) in the Static Tradeoff model of optimal capital structure [Not
Brut [27]

Answer:

C. VL = VU + PV(Tax Shield) - PV(CFD)

Explanation:

The static trade off theory is a theory of capital structure in corporate finance, first proposed by Alan Kraus and Robert H. Litzenberger. The theory emphasizes the trade-offs between the tax benefits of increasing leverage and the cost of bankruptcy associated with higher leverage. The <u>answer is C</u> as we know relative to the unleveraged firm, leverage provides both costs and benefits. The benefits are the tax shields provided by debt.

7 0
4 years ago
Echo Air Company (EAC)Echo Air Co. is a well-known establishment in the airline business. It is currently one of the top firms i
Katarina [22]

Answer:

A. whistle-blowing.

Explanation:

Whistle-blowing occurs when an employee exposes information of wrong-doing, unethical practice, or illegal actions. The information released can either be to internal authorities or it can be released to external parties.

When an employee does not have confidence that appropriate action will be taken on the information provided, employees tend to go to external parties with the information.

This was the case with EAC above where the staff were going to the press. EAC now set up a whistle-blowing framework that increased employee confidence and reduced turn-over.

4 0
3 years ago
Scottish Company manufactures a variety of toys and games. John Chisholm, president, is disappointed in the sales of a new board
Schach [20]

Answer:

c. $110,000

Explanation:

The computation of profit (loss) from Option One is shown below:-

Profit (loss) from Option One =  Sold unit × (Cut the price - Variable cost) - Fixed cost

=  15,000 × ($70 - $56) - $100,000

= 15,000 × $14 - $100,000

= $210,000 - $100,000

= $110,000

Therefore for computing the profit (loss) from Option One we simply applied the above formula.

4 0
3 years ago
Argue that use of english is important to chartered accountant​
ICE Princess25 [194]

Explanation:

There are several ways that a CA aspirant can become fluent in the English language. The best way is to take short-term English language classes that will give some fluency in English. There are several such English courses available from leading institutes in India. Also, you can take simple online English language courses to improve English language fluency.

English language fluency is important for CA aspirants. It’s not only necessary to pass all exams to become a CA but also in your routine work, after becoming a CA. Hence, learning English and becoming fluent in this language is very important.

4 0
3 years ago
Other questions:
  • Slim made a single deposit of $5,000 in an account that pays 7.2% in 2015. What equal-sized annual withdrawals can Slim make fro
    11·1 answer
  • Due to the nature of the patent laws on pharmaceuticals, the market for such drugs A. switches from monopolistic to competitive
    13·1 answer
  • A budget for a business could best be created in a:
    5·1 answer
  • Wilfred Nadeau owns 300 shares of Consolidated Glue. The​ company's board of directors recently declared a cash dividend of 45 c
    8·1 answer
  • Which of the following statements is/are FALSE, all else the same?
    14·1 answer
  • Bob is a recognized french horn player. Bob has played for several major symphonies. Last year Bob went through bankruptcy and i
    15·1 answer
  • The process of sending and receiving messages without using any spoken words defines _____.
    13·2 answers
  • If the monopolist faces a constant marginal cost of $5, how much output should the firm produce in order to equal marginal reven
    12·1 answer
  • Columbia Products produced and sold 1,400 units of the company’s only product in March. You have collected the following infor
    13·1 answer
  • Suppose that Rafay is only given 5 weeks​ (instead of ​) to complete the project. By how many weeks should each activity be cras
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!