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kobusy [5.1K]
3 years ago
12

The Sisyphean Company's common stock is currently trading for $25.50 per share. The stock is expected to pay a $2.80 dividend at

the end of the year and the Sisyphean Company's equity cost of capital is 10%. If the dividend payout rate is expected to remain constant, then the expected growth rate in the Sisyphean Company's earnings is closest to
Business
1 answer:
coldgirl [10]3 years ago
6 0

Answer:

0.98%

Explanation:

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

the growth rate can be determined from the above equation

$25.50 = $2.8 / ( 0.1 -g)

Multiply both sides of the equation by 0.1 - g

$25.50( 0.1 -g) = $2.8

Divide both sides by  $25.50

0.1 - g = 0.1098

g = 0.1 -  0.1098

g = - 0.0098

g = -0.98%

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Annual Percentage Rate (APR), credit limit, and penalties
Artyom0805 [142]

Answer:

Choosing a credit card.

Explanation:

A credit card is a plastic rectangular card issued by financial institutions such as banks, that allows the cardholder to purchase goods or services from merchants on credit.

Credit cards offers it's users convenience to access a line of credit and thus, eliminates the need to carry cash (money) or check around.

The important criteria to consider when choosing a credit card are;

1. Annual Percentage Rate (APR).

2. Credit limit.

3. Penalties and fees.

4. Cash back.

3 0
3 years ago
Jamie is analyzing the estimated net present value of a project under various conditions by revising the sales quantity, sales p
Juliette [100K]

Answer:

The answer is option E) The type of analysis that Jamie is doing is best described as scenario analysis.

Explanation:

scenario analysis assesses the effect of changing all the input variables at the same time.

Scenarios being considered can relate to a single variable, such as the relative success or failure of a new product launch, or a combination of factors, such as the results of the product launch combined with possible changes in the activities of competitor businesses. The goal is to analyze the results of the more extreme outcomes to determine investment strategy.

In this case, scenario analysis is used in analyzing the estimated net present value of a project under various conditions by revising the sales quantity, sales price, and the cost estimates.

4 0
3 years ago
Problem 2 (9 points) The following information was taken from the income statement and balance sheet of The Perryman Company for
Len [333]

Answer and Explanation:

The computation is shown below;

The net profit margin is

= Net income ÷ sales revenue

= $184,000 ÷ $574,000

= 32%

The asset turnover is

= Sales revenue ÷ average of assets

= $574,000 ÷ ($2,142,000 + $1,998,000)  ÷ 2

= $574,000 ÷ $2,070,000

= 0.28 times

c. The return on assets is

= Net income ÷ average of assets

= $184,000 ÷ $2,070,000

= 0.089

= 8.89%

3 0
3 years ago
Income Statement Sections During the current year, David Corporation sold a segment of its business at a gain of $210,000. Until
Montano1993 [528]

Answer:

Answer is given below.

Explanation:

-Income from Continuing Operation                                  700000

-Discontinued Operations  

-Loss from operations of                                        60000

discontinued segment (75000*80%)  

-Gain on disposal of discontinued                         168000           108000

segment (210000*80%)

-Net Income                                                                             808000

8 0
3 years ago
Which of the following is best classified as an ethnocentric policy of strategic approaches to international staffing? a. Host-c
madam [21]

Answer:

b. Managers from headquarters staff key positions.

Explanation:

In an international organisation when only managers from the headquarters are allowed to staff key positions, it is an indication of ethnocentric policy on staffing.

This usually occurs when the management of the organisation feels more comfortable working with a particular ethnic group they share the same culture with, and so understand easily. This is a way to avoid culture shock.

6 0
3 years ago
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