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Charra [1.4K]
3 years ago
6

NU YU announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $.4

1 a share. The following dividends will be $.46, $.61, and $.91 a share annually for the following three years, respectively. After that, dividends are projected to increase by 3 percent per year. How much are you willing to pay today to buy one share of this stock if your desired rate of return is 11 percent
Business
1 answer:
storchak [24]3 years ago
4 0

Answer:

$9.51

Explanation:

The computation of the price willing to pay for purchasing one share is shown below:

But before that following calculation need to be done

Value after year 4 is

= (D4 × Growth rate) ÷ (Required return - Growth rate)

= ($0.91 × 1.03) ÷ (0.11 - 0.03)

= $11.71625

Now the current price is

= Expecte dividends × Present value of discounting factor(11%,time period)

= $0.41 ÷ 1.11 + $0.46 ÷ 1.11^2 + $0.61 ÷ 1.11^3 + $0.91 ÷ 1.11^4 + $11.71625 ÷ 1.11^4

= $9.51

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saw5 [17]

Answer:

FIFO        87100

LIFO        92600

AVERAGE 88400

Explanation:

a)FIFO 1000 12 1000 12 12000  

       2000 18 1500 18 27000  

                 2500    

     

              0 12 0  12 0  

         500 18 500         18 9000  

              3000 23 1700 23 39100  

                 2200  87100  

     

b)LIFO 1000 12 500         12 6000  

       2000 18 2000 18 36000  

                  2500    

     

            500 12       0 12 0  

                 0 18 0 18 0  

          3000 23 2200 23 50600  

                 2200  92600  

     

c)average 1000 12 12000 500  

               2000 18 36000 2000  

               3000 16 48000 2500 16 40000

     

                  500 16 8000 0  

                  3000 23 69000 0  

               3500 22 77000 2200 22 48400

                                             88400

3 0
4 years ago
Managers of a discount store chain are considering whether to add a new auto service department. In reaching this decision, the
pishuonlain [190]

Answer:

Both direct and indirect costs

Explanation:

Direct costs refer to those costs which can be directly related to and identified with a production activity. These costs often vary with the production level i.e these costs are usually variable in nature. These are usually factory costs. Examples of direct costs are, direct material, direct labor, worker wages etc.

Indirect costs are those costs which are incurred for multiple activities. Such costs cannot be identified and applied to one activity alone. Office expenses, rent for the whole building, utility expenses etc comprise examples of indirect costs.

In the given case, managers of a discount store chain are considering addition of a new auto service department. The addition of such a department will incur both direct and indirect costs in the form of wages, utilities, rent, etc. Thus, the managers need to consider both direct and indirect costs.

8 0
3 years ago
Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months: Jan
gladu [14]

Answer:

The expected January 31 Accounts Payable balance is $6,590

Explanation:

The December Accounts Payable balance is $7,900 - this is the 50% purchase amount in December and will be paid in January.

In January, Fortune Company will pay 50% purchase amount in December and 50% purchase amount in January.

Expected payment = $7,900 + 50% x $13,180 = $14,490

At January 31, the expected Accounts Payable balance:

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6 0
3 years ago
Which level of government is currently “in charge” of planning controls for california property?
stira [4]

The level of the government that is the one in charge with the planning controls are the state housing law because this is considered to be a uniformed law in which all of the cities should follow and adopt for this has been made and established.

6 0
3 years ago
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Alik [6]

Answer:

It would decrease by $7,504.

Explanation:

The current ratio determines liquidity of a company. The current ratio is calculated by dividing total current assets from total current liabilities. The change in inventory will affect the current ratio of the company. In the consolidated financial statements the value of inventory is decreased due to exchange rate fluctuations. The change in value of inventory will affect the amount reported in the balance sheet of the parent and will ultimately result in reduction of current ratio.

3 0
3 years ago
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