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Leona [35]
3 years ago
11

Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because t

he firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $15 per share 10 years from today and will increase the dividend by 5 percent per year thereafter.
If the required return on this stock is 15 percent, what is the current share price?
Business
1 answer:
dimulka [17.4K]3 years ago
8 0

Answer:

$51.25

Explanation:

P9 = Next dividend / Required rate r - Growth rate g

P9 = $15 / 14% - 5%

P9 = $15 / 9%

P9 = $166.67

Po = P9 / (1 - Required rate of return)^9

Po = $166.67 / (1 + 0.14)^9

Po = $166.67 / 3.2519

Po = $51.25

So, the current stock price is $51.25.

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Would it be more profitable to own 200 shares of pennys pickles or 1 share from exxon?
Sauron [17]

Answer :

Exxon  

Explanation :  

It Would Most Definitely want Exxon. with 200 shares of Penny's Pickles You Only have 2%. Exxon You'd Have Around 3.5 %

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3 years ago
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Which of the following tactics might public sector unions use to increase management's cost of disagreeing with the union positi
rjkz [21]

Answer:

D. All the above are legal tactics that the union can use to pressure management to accept the union's position on an issue.

Explanation:

Each and everyone one of the options mentioned above are tactics adopted by the union in pressuring management to accept their position on most of the issues which they have or are arguing about.

5 0
4 years ago
The Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly.
Bond [772]

Answer:

$60 per unit

Explanation:

Total overheads:

= Overheads of fabrication department + Overheads of assembly department

= $90,500 + $109,700

= $200,200

Total labor hours:

= Blinks + Dinks

= (1,013 × 4) +  (1,859 × 5)

= 4,052 + 9,295

= 13,347

Overhead rate per hour = Total overheads ÷ Total labor hours

                                        = $200,200 ÷ 13,347

                                        = $15 per hour

Total overhead cost for blinks:

= Total hours for blinks × rate per hour

= 4,052 × $15 per hour

= $60,780

Overhead cost per unit for Blinks:

= Total overhead cost for blinks ÷ Total units

= $60,780 ÷ 1,013

= $60 per unit

5 0
3 years ago
Regent Plumbing Corporation provides plumbing services. Selected transactions of Regent Plumbing Corporation are described as​ f
Fynjy0 [20]

Answer:

net income 5,600

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a.- service revenue   3,500

b.- it do not affect the net income. Is trading one asset (cash) for another (equipment)

c.- it do not affect the income. It increase a liability (note payable) and an asset (cash)

d.- rent expense          (900)

e.- it do not affect the net income. Is trading one asset (cash) for another (supplies)

f .- service revenue   3,000

net income = revenue - expenses

service revenue 3,500 + 3,000 =  6,500

rent expense                                    (900)

net income                                      5,600

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4 years ago
What factors maintain differences between countries/religion
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Answer: Different beliefs of "God"

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