1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sergey [27]
2 years ago
14

The Fish House is expected to pay annual dividends of $1.23 and $1.25 at the end of the next two years, respectively. After that

, the company expects to pay a constant dividend of $1.35 a share. What is the value of this stock at a required return of 16.4 percent?a. $6.07b. $8.55c. $8.05d. $11.08e. $8.23
Business
1 answer:
lorasvet [3.4K]2 years ago
4 0

Answer:

c. $8.05

Explanation:

Calculation to determine What is the value of this stock at a required return of 16.4 percent

First step is to calculate the P2

P2 = ($1.35/.164)

P2= $8.23

Now let calculate the value of the stock

P0 = [$1.23 /1.164] + [($1.25 + 8.23)/1.164^2]

P0 = $8.05

Therefore the value of this stock at a required return of 16.4 percent is $8.05

You might be interested in
In exchange for $1,500 legal services to help set up the new company, Hickory Grove Corporation issued 100 shares of $10 par val
SSSSS [86.1K]
A credit to common stock for 1000

8 0
3 years ago
Vaughn Manufacturing has two divisions; Sporting Goods and Sports Gear. The sales mix is 75% for Sporting Goods and 25% for Spor
Cerrena [4.2K]

Answer:

The correct answer is 35%.

Explanation:

According to the scenario, the computation of the given data are as follows:

We can calculate the Weighted average contribution margin ratio by using following formula:

weighted-average contribution margin ratio =  (Contribution margin ratio × Sales of sporting goods) + (Contribution margin ratio × Sales of sporting gears)

= ( 30 × 75% ) + ( 50 × 25%)

= 22.5% + 12.5%

= 35%

3 0
3 years ago
Problem 16-15 MM and Taxes [LO2] Meyer & Co. expects its EBIT to be $111,000 every year forever. The firm can borrow at 8 pe
Aleks04 [339]

Answer:

a) 12.87%

b) 11.03%

Explanation:

EBIT with no debt = $111,000

net income = $111,000 x (1 - 22%) = $86,580

total value of the firm with no debt = $86,580 / 12% = $721,500

value of the firm after debt is taken = $721,500 + ($165,000 x 22%) = $757,800

debt to equity ratio after debt is taken = $165,000 / ($757,800 - $165,000) = 27.834%

new cost of equity (Re) = 12% + [(12% - 8%) x 27.834% x (1 - 22%)] = 12.87%

WACC = (0.72166 x 12.87%) + (0.27834 x 8% x 0.78) = 9.288% + 1.737% = 11.025$ = 11.03%

4 0
3 years ago
At the end of 2021, Kingbird Co. has accounts receivable of $762,000 and an allowance for doubtful accounts of $22,520. On Janua
mixer [17]

Answer:

a. Debit Allowance for doubtful debt $4,398

   Credit Accounts receivable $4,398

   Being entries to write off receivable due from Madonna Inc.

b. $739,480  before and after the write-off

Explanation:

When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.  

To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

The realizable value of accounts receivable before the write off is the net of the accounts receivable and the allowance for doubtful debt

=  $762,000 - $22,520

= $739,480

This amount remains the same after the write off as the write off will reduce the balances in both the allowance for doubtful debt account and accounts receivable.

6 0
3 years ago
determine the operating cash flow​ (ocf) for​ kleczka, llc., based on the following data. during the year the firm had sales of
12345 [234]

The operating cash flow of kleczka llc. is: 474000

It is calculated as:

Sales                                                                                            2500000

Less: Cost of Goods Sold                                                          -1800000

Gross Profit                                                                                   700000

Less: Operating Expenses                                                          - 300000

Operating Income                                                                         400000        

Add: Depreciation                                                                          200000  

Operation Cash Flow                                                                     600000

Less Tax                   (600*21%)                                                       126000

Net Operating Cash Flow                                                               474000

Operating cash flow  or OCF is a measure of the amount of cash which is generated by a company's normal business operations.

To know more about operating cash flow here:

brainly.com/question/17001006

#SPJ4

8 0
1 year ago
Other questions:
  • Assume that a profit maximizing monopolist is producing a quantity such that marginal revenue exceeds marginal cost. we can conc
    13·1 answer
  • The focus of the Manufacturing career cluster is to make useful products. to use machines. to perform maintenance and installati
    9·1 answer
  • Having a low credit score can make it more difficult to: a obtain a car loan b open a new credit card c secure an apartment leas
    14·1 answer
  • Name at least two primary forms of identification needed to obtain a learners license
    8·1 answer
  • Merchandise inventory is Select one: a. None of the above b. Reported under the classification of Property, Plant and Equipment
    7·1 answer
  • If Tex's Manufacturing Company purchases the component externally, $20,000 of the fixed costs can be avoided. At what external p
    15·1 answer
  • Suppose Will gives his wallet containing $100 to Alex to hold while he works out. During Will’s workout, Alex uses the $100 to p
    6·1 answer
  • What ways you could use to increase market share
    8·1 answer
  • A property owner owned a tract of land that he leased to a baker for 27 years. The baker built a large bakery on the property. T
    13·1 answer
  • from a company's viewpoint, the existence of an active, liquid, well-organised market in existing shares:
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!