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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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Answer:

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Explanation:

Giving the following information:

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Apr. 20: Purchase 420 units for $2.63

Dunbar sold 570 units of inventory during the month.

Under LIFO (last-in, first-out) method, the ending inventory is integrated by the first units incorporated into inventory.

First, we need to calculate the number of units in inventory:

Ending inventory in units= total units for sale - units sold

Ending inventory in units= (490 + 420) - 570= 340 units

Ending inventory ($)= 340*2.16= $734.4

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Which aspect of zipcar's strategy makes it a practitioner of conscious marketing?
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Sales of blank______ began to increase in the early 1970s as many cigarette smokers apparently began to look for alternatives th
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4 0
1 year ago
Phoenix Agency leases office space for $7,700 per month. On January 3, Phoenix incurs $105,600 to improve the leased office spac
nadezda [96]

Answer:

$13,200 per year

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Amount incurred to improve the office space = $

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