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baherus [9]
3 years ago
11

Michael's, Inc., just paid $2.60 to its shareholders as the annual dividend. Simultaneously, the company announced that future d

ividends will be increasing by 5.6 percent. If you require a rate of return of 9.8 percent, how much are you willing to pay today to purchase one share of the company's stock
Business
1 answer:
mixas84 [53]3 years ago
6 0

Answer:

$65.37

Explanation:

Calculation for how much are you willing to pay today to purchase one share of the company's stock

Using this formula

P/0 = D0 ( 1 + g ) / R-g

Let plug in the formula

P/0 = $2.60 (1 + .056) / .098 - .056

P/0 = $2.60 (1 .056)/0.042

P/0=$2.7456/0.042

P/0=$65.37

Therefore how much are you willing to pay today to purchase one share of the company's stock will be $65.37

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I️ don’t know for sure which one it would be
6 0
3 years ago
The following data are available for the Phelps Corporation for a recent month: Product A Product B Product C Total Sales $ 150,
mrs_skeptik [129]

Answer:

$277,000

Explanation:

Break even is the point where neither profit nor a loss is made by the company.

<u>Determination of Break-even Sales</u>

Sales - Variable Expenses - Fixed Expenses = 0

Therefore, Solving Algebraically

Sales = Variable Expenses + Fixed Expenses

         = 222,000 + 55,000

         = 277,000

Therefore Break-even sales for the month for the company is closest to $277,000

5 0
3 years ago
Which is a measure of quality control equal to one fault in one million opportunities problems?
snow_tiger [21]

The six 9s of the quality rule are a measure of quality control that is equivalent to one error in a million potential for problems.

<h3 /><h3>What does "quality control" mean?</h3>
  • A technique or collection of procedures known as quality control (QC) is designed to make sure that a service or product is made in accordance with a specified set of quality criteria or that it satisfies the needs of the client or customer.
  • There are various approaches to quality control. These include the Taguchi Method, Six Sigma, an x-bar chart, and 100% inspection mode.
  • Setting standards and conducting tests to ensure that anything, such as a product or service, is completed correctly is known as quality control.

To learn more about quality control, refer to:

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5 0
2 years ago
Project A requires a $ 385,000 initial investment for new machinery with a five year life and a salvage value of . The company u
Papessa [141]

Answer:

4.2 years

Explanation:

Here is the complete question

Project A requires a $ 385,000 initial investment for new machinery with a five year life and a salvage value of $44,000. The company uses straight - line depreciation . Project A is expected to yield annual net income of $ 23,100 per year for the next five years.

Required:

Compute Project A's payback period.

Payback = amount invested / cash flow

cash flow = net income + depreciation

depreciation = (cost of asset - salvage value) / useful life

(385,000 - 44,000) / 5 = 68,200

Cash flow = 68,200 + $ 23,100 = 91300

$ 385,000 / 91300 =4.2

6 0
3 years ago
A large firm in the automotive aftermarket business wants to improve its current situation, which is characterized by excess inv
oksano4ka [1.4K]
<span>Yes,Supply chain management will be helpfull to automotive aftermarket business in this scenario.Supply chain management is designed to coordinate and integrate all the activities from raw materials to product consumption.Supply chain management is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage</span>
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3 years ago
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