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daser333 [38]
3 years ago
9

The Back Room just paid an annual dividend of $1.50 a share. The firm expects to pay dividends forever and to increase the divid

end by 4.5 percent annually. What is the expected value of this stock six years from now if the discount rate is 12 percent
Business
1 answer:
umka2103 [35]3 years ago
6 0

Answer:

$26.05

Explanation:

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid = d0 x (1 + growth rate)

d0 = dividend that was just paid

r = cost of equity

g = growth rate

1.5 x (1.045^6) / 12 - 4.5 = $26.05

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Mercury Corporation issued 7,000 shares of no-par common stock for $15 per share. Mercury also issued 2,800 shares of $70 par, 6
inessss [21]

Answer:

Issue of  7,000 shares of no-par common stock for $15 per share

Financing Activity (FA).

Issue of 2,800 shares of $70 par, 6 percent noncumulative preferred stock at $80 per share

Financing Activity (FA)

Explanation:

Issue of  7,000 shares of no-par common stock for $15 per share

This represents capital funding and is included in the Cash Flow Statement as Cash Flow from Financing Activity.

Issue of 2,800 shares of $70 par, 6 percent noncumulative preferred stock at $80 per share

This transaction also represents capital funding and is included in the Cash Flow Statement as Cash Flow from Financing Activity.

7 0
3 years ago
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Cedric is planning to major in business management and would like to work for an international company someday. What program mig
borishaifa [10]
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Definitely right

The city news stations gives the opportunity for them to learn about culture and trade in the business community.
6 0
2 years ago
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Assets Liabilities and Net Worth Reserves $51 Checkable Deposits $140 Loans 109 Stock Shares 130 Securities 100 Property 10 Refe
erastovalidia [21]

Answer:

$9 billion

Explanation:

Calculation to determine what The commercial banking system has excess reserves of

Using this formula

Excess Reserve= Net Worth Reserves -Required reserve

Let plug in the formula

Excess Reserve=$51 billion - (.30*$140 billion)

Excess Reserve=$51 billion-$42 billion

Excess Reserve=$9 billion

Therefore The commercial banking system has excess reserves of $9 billion

5 0
3 years ago
Under the FLSA, regular rate of pay does not include: A. vacation pay. B. severance pay. C. overtime pay. D. earned bonuses. E.
Galina-37 [17]

Answer:

The correct answer is A

Explanation:

FLSA stands for Fair Labor Standard Act, which is defined as the act that usually requires, the covered non- exempt employees to receive the overtime pay, at least 1 and 1/2 times of their regular pay for the time they worked in excess of the 40 hours per week of the work.

The regular rate is defined as the remuneration which involves all the employment remuneration that are subject to the exclusions mentioned in the Section 7 under sub section (e) of the FLSA.

So, the vacation pay is the one which is not involved in the regular rate as any time earned gained over 40 along with the vacation is the straight time which will not be paid.

5 0
3 years ago
Janice and Shunil are both senior software analysts. They have worked together on projects OF Six years and get along great. Jan
Natali [406]

Answer:

The appropriate response is Option D (Job sharing).

Explanation:

  • Only by seeking less time can Janice as well as Shunil partake throughout the sharing of jobs, which further enables conventional forty-hour-a-week employment to have been shared between multiple individuals.
  • The remaining structural solutions were indeed obligations still forty hours each week.

Additional options are not connected with the situation. Thus the answer above is correct.

7 0
3 years ago
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