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sergey [27]
3 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]3 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

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Weighted Average Method, FIFO Method, Physical Flow, Equivalent Units Heap Company manufactures a product that passes through tw
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Answer:

<u>Physical flow schedule</u>

Inputs

Beginning Work in Process                86,300

Add Units Started                              105,900

Total                                                    192,200

Outputs

Units Completed and Transferred   172,900

Units in Ending Work in Process       19,300

Total                                                    192,200

Explanation:

A physical flow schedule is simply a schedule of units introduced into the process and units outputs without expressing them to equivalent units.

Units Introduced must always be equal to units outputs in physicals terms.

<em>Units Completed and Transferred = Beginning Inventory + Units Started - Units in Ending Work in Process</em>

                                                        = 86,300 + 105,900 - 19,300

                                                        = 172,900

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Which of the following is a challenge faced by developing nations? A. Growing population B. Declining population C. Lack of effo
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A growing population
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Marginal utility is equal to which of the following? (A) total income divided by the price of the product (B) the change in tota
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Utility is the total satisfaction that occurs from consuming a commodity or service.

Average utility is total utility divided by the number of goods consumed.

8 0
3 years ago
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