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kondaur [170]
3 years ago
14

Sultan Services has million shares outstanding. It expects earnings at the end of the year of million. Sultan pays out​ 60% of i

ts earnings in total​ - 40% paid out as dividends and​ 20% used to repurchase shares. If​ Sultan's earnings are expected to grow by ​% per​ year, these payout rates do not​ change, and​ Sultan's equity cost of capital is ​%, what is​ Sultan's share​ price?
Business
1 answer:
sukhopar [10]3 years ago
7 0

Answer: $73.33

Explanation:

Dividend discount model can be used to calculate the value of the shares:

= Earnings paid out / (Cost of equity - growth rate)

Earnings to be paid out:

= 60% * 5,500,000

= $3,300,000

Value of shares:

= 3,300,000 / ( 9% - 6%)

= $110,000,000

Share price:

= Value of shares / Number of shares outstanding

= 110,000,000 / 1,500,000

= $73.33

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At a sales volume of 30,000 units, Carne Company's total fixed costs are $30,000 and total variable costs are $45,000. The relev
Anna [14]

Answer:

$2.25

Explanation:

sale volume of company = 30,000 unit

total fixed cost are = $30,000

total variable cost $45,000 for 30,000 unit

1 unit = 45000/30000 =  $ 1 . 5

for the sale of 40,000 unit

the  total expected cost

    = Fixed cost + Variable cost

      = $30,000 + 40,000×$1.50

      = $30,000+$60,000

     = $90,000

Cost per unit:

 = $90,000/40,000

=  $2.25

8 0
3 years ago
If a company is using past email responses as a segmentation strategy, the best approach for individuals who have not responded
raketka [301]

Answer: a. offer them free merchandise if they place an offer

Explanation:

When a customer is not replying via email, the best way to get them to be responsive again is to offer them some form of special that would allow them to make savings on a purchase of goods.

One such method would be by offering them free merchandise if they make an offer. Chances are that they would become responsive so as to take advantage of this offer.

3 0
3 years ago
The ____ act criminalized securities fraud and stiffened penalties for corporate fraud.
Arte-miy333 [17]
I believe this is the Sarbanes Oxley act
3 0
3 years ago
Most countries, including the United States, import substantial amounts of goods and services from other countries. Yet the chap
Tju [1.3M]

Answer:

The main determinant is the NET IMPORT, if the net import is higher than the net export then countries like the United States of America will have a low standard of living,while if the net export is higher than the net import then Countries like the United States of America will enjoy a high standard of living.

COMPARED TO NET EXPORTS, COUNTRIES LIKE THE UNITED STATES OF AMERICA HAVE A LOWER NET IMPORT WHICH GIVES THEM A POSITIVE BALANCE OF TRADE.

Explanation: THE VOLUME OF IMPORT IS NOT THE MAIN CONCERN, THE MAIN CONCERN IS THE VOLUME OF NET IMPORT COMPARED TO THE VOLUME OF NET EXPORT COUNTRIES LIKE THE UNITED STATES OF AMERICA HAVE A HIGHER NET EXPORT THAN NET IMPORT WHICH GIVES THEM TRADE ADVANTAGE AND A POSITIVE BALANCE OF TRADE. With a good balance of trade a country like the United States of America will maintain and enjoy a high standard of living as the volume of imports is always lower than the value of what is exported.

3 0
3 years ago
It costs Sunland Company $26 per unit ($18 variable and $8 fixed) to produce its product, which normally sells for $38 per unit.
Triss [41]

Answer:

Effect on income= $4,400 increase

Explanation:

Because it is a special order and there is unused capacity, we will not take into account the fixed costs.

<u>To calculate the effect on income, we need to use the following formula:</u>

Effect on income= number of units*unitary contribution margin

Effect on income= 4,400 (21 - 18 - 2)

Effect on income= $4,400 increase

4 0
3 years ago
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