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vovangra [49]
3 years ago
8

The risk-free rate of return is 5%, the required rate of return on the market is 15%, and High-Flyer stock has a beta coefficien

t of 1.4. If the dividend per share expected during the coming year, D1, is $3.92 and = 5%, at what price should a share sell?
Business
1 answer:
densk [106]3 years ago
5 0

Answer:

$28

Explanation:

Calculation to determine at what price should a share sell

First step is calculate the Required return using this formula

Required return=Risk free rate+Beta*(market rate-risk free rate)

Let plug in the formula

Required return=5+1.4*(15-5)

Required return=5+1.4*(10)

Required return=5+14

Required return=19%

Now let determine the Current price using this formula

Current price=D1/(Required return-Growth rate)

Let plug in the formula

Current price=3.92/(0.19-0.05)

Current price=3.92/0.14

Current price=$28

Therefore the price that a share sell is $28

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During the first 11 months of a recent year, a certain charitable organization received an average (arithmetic mean) of $20,600
IgorLugansk [536]

Answer:

$25,400

Explanation:

Average for first 11 months = $20,600

Total amount for first 11 months = 11 x $20,600 = $226,600

Average for 12 months = $21,000

Total amount for 12 months = 12 x $21,,000 = $252,000

Amount received in December =  $252,000 - $226,600 = $25,400

The organization received $25,400 in donations during December

6 0
3 years ago
When Arby's announced in a recent ad campaign that "unlike McDonald's, all of Arby's chicken sandwiches are made with 100% all n
USPshnik [31]

Answer: Comparative

Explanation:

The comparative message is one of the type of business marketing strategy that helps in promoting the various types of products and the services in the market.

 It basically helps in encouraging the improvement and also innovation in the given products to meet the desirable properties in an organization based on the consumer requirement in the market.

The comparative message compare the products in the market with the other competitors in terms of characteristics and features. Therefore, comparative is the correct answer.      

 

8 0
3 years ago
Jallouk Corporation has two different bonds currently outstanding. Bond M has a face value of $50,000 and matures in 20 years. T
Nina [5.8K]

Answer

Current Price of Bond M = $25,202

Current Price of Bond N = $7,102

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

Download xlsx
4 0
2 years ago
Scott Corp. received cash of $20,000 that was included in revenues in its Year 1 financial statements, of which $12,000 will not
Oliga [24]

Answer:

3,000

Explanation:

As the income will be taxed at 25% the income tax liability will be for that amount

12,000 x 25% = 3,000

The tax deferred liability is generated from a temporary difference. The company is paying less income tax today but will pay more in the future. Hence there is a liability.

The accounting reason for this treatment is to match expenses with the time they occur or the revenues which generated.

6 0
3 years ago
What should designers gain from a critique that will enable them to improve their work?
Brilliant_brown [7]

Answer:

A designer gains a list of actionable items to improve the design from the critique.

Explanation:

As we know that critique in a positive manner blows up the positivity. Through that, the designers improve their designs according to the fashion and the requirement of consumers. Consumers most probably like to induce new fashion in accordance with the time. During the critique, actionable products are used to improve the product and improve their work.

For more content like this kindly visit

brainly.com/question/28179473

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8 0
1 year ago
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