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andrey2020 [161]
3 years ago
9

Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $11.15, but management expects to reduce the p

ayout by 6 percent per year indefinitely. If you require a return of 12 percent on this stock, what will you pay for a share today
Business
1 answer:
horrorfan [7]3 years ago
3 0

Answer:

the stock price is $58.23

Explanation:

The computation of the price pay per share today is shown below:

Stock price is

= Current year dividend ÷ (required rate of return - growth rate)  

= $11.15 × (1 - 0.06) ÷ (12% - (-6%)

= $10.48 ÷ 18%

= $58.23

Hence, the stock price is $58.23

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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Cost reduction is still the number one priority for many supply chain executives, according to the MHI and Deloitte survey. Sele
zhenek [66]

Answer:

MHI and Deloitte Survey

Cost Reduction #1 Priority

True

Explanation:

For supply chain companies to achieve their profit targets, they need to curtail costs.  Consumers are not ready to absorb much costs as they are presented with low-priced alternatives.  The competition for customers among supply chain organizations is very high.  Everyone competes for the dollar the consumer is willing to spend on goods.  With property and advertising costs skyrocketing, careful management of the cost structure is required.

7 0
3 years ago
An asset falling under the MACRS five-year class was purchased three years ago for $200,000 (its original depreciation basis). C
Nitella [24]

Answer:

(a) The cash flows is $59,040.

(b) The cash flows is $71,040.

Explanation:

From the  Modified Accelerated Cost Recovery System (MACRS) Tables, the depreciation rates for the first 3 years for an asset falling under the MACRS five-year class are 20%, 32% and 19.2%. Therefore, we have:

Accumulated depreciation rate = 20% + 32% + 19.2% = 71.20%

Accumulated depreciation = Cost of the asset * Accumulated depreciation rate =  $200,000 * 71.20% = $142,400

Net book value of the asset = Cost of the asset - Accumulated depreciation = $200,000 - $142,400 = $57,600

We can now proceed as follows:

(a) Calculate the cash flows if the asset is sold now at $60,000

Capital gains = Sales proceeds - Net book value = $60,000 - $57,600 = $2,400

Capital gains tax = Capital gains * Tax rate = $2,400 * 40% = $960

Net sales proceeds = Sales proceeds - Capital gains tax = $60,000 - $960 = $59,040

Therefore, the cash flows is $59,040 net sales proceeds.

(b) Calculate the cash flows if the asset is sold now at $80,000

Capital gains = Sales proceeds - Net book value = $80,000 - $57,600 = $22,400

Capital gains tax = Capital gains * Tax rate = $22,400 * 40% = $8,960

Net sales proceeds = Sales proceeds - Capital gains tax = $80,000 - $8,960 = $71,040

Therefore, the cash flows is $71,040 net sales proceeds.

3 0
3 years ago
QS 19-10 Computing contribution margin LO P2 D’Souza Company sold 11,500 units of its product at a price of $77.00 per unit. Tot
vivado [14]

Answer: $317,400

Explanation: The first step is to calculate the sales value

Sales = Unit sold × Price per unit

11500 × $77.00 = $885,500

calculation Total variable cost

i. Variable production cost = Units × variable production cost per unit

11500 × $39.70 = $456,550

ii. Variable selling and administrative cost = unit × variable selling and administrative cost per unit

11500 × $9.70 = $111,550

Total variable cost = Variable production cost + variable selling and administrative cost

Total variable cost = $456,550 + $111,550

                               = $568,100

Calculation of contribution margin

Contribution margin = Sales - total variable cost

                                   = $885,500- $568,100

                                    = $317,400

7 0
3 years ago
If scientists discover that steamed milk, which is used to make lattés, prevents heart attacks, what would happen to the equilib
Tatiana [17]

Answer:

a. Both the equilibrium price and quantity would increase.

Explanation:

The point on a demand-supply graph where the demand curve and the supply curve intersects is known as the point of equilibrium.

If scientists discover that steamed milk, which is used to make lattés, prevents heart attacks, what would happen to the equilibrium price and quantity of lattés is that, both the equilibrium price and quantity would increase.

This simply means that, whatever makes the factors of production such as, land, labor, entrepreneurship, capital, or efficiency to either go up or down would certainly result in fluctuations in the economy of a particular country.

Aggregate supply (AS) refers to the total quantity of output (goods and services) that firms are willing to produce and sell at a given price in an economy at a particular period of time.

Aggregate demand (AD) can be defined as the total quantity of output (final goods and services) that is demanded by consumers at all possible price levels in an economy at a particular time.

On a standard Aggregate demand (AD)-Aggregate supply (AS) curve, the y axis denotes the Price (P) of goods and services while the x axis typically denotes the Output (Q) of final goods and services.

In the short-run, a rightward shift in the aggregate supply (AS) curve causes output to increase and result in a price fall (lower price) while a rightward shift in the aggregate demand (AD) curve also cause output to increase and rise in prices.

The short-run nominal fluctuations basically cause a change in the level of production. In the short-run, as a result of a shift in the aggregate supply; an increase in money consequently to result in increase the level of production (output).

Hence, more goods are produced as a result of the increased output (supply) and more goods would be purchased as a result of their lower prices.

5 0
2 years ago
A(n) ________ indicates the decision variables set by the buyer, such as product availability, the backup stock needed to provid
Anestetic [448]

Answer:

Inventory Management Report

Explanation:

Inventory management is the most essential part of every organization where an organization manages its raw material, check their availability of a product, back storage so that company doesn't get a shortage of its product and the quantities. On the other hand inventory management report indicates the strong decision variables are set by the buyers.

Therefore from the above explanation, the correct answer is an inventory management report.

4 0
3 years ago
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