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Blababa [14]
2 years ago
10

Alpha Wood Interiors announced that it is going out of business. As of today, no more regular dividends will be paid. The firm w

ill, however, pay two liquidating dividends. The first will be paid one year from now in the amount of $17 a share. The second and final payment will be paid two years from now at an estimated $32 a share. What is the value of this stock today at a discount rate of 6 percent
Business
1 answer:
xz_007 [3.2K]2 years ago
4 0

Answer:

$44.52

Explanation:

The value of the stock today can be determined by finding the present value of the liquidating dividends

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = 17

Cash flow in year 1 = 32

I = 6%

PV = $44.52

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

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Which of the following statements about the consideration set is false? Group of answer choices
Sunny_sXe [5.5K]

Answer:A). A consideration is always at least 2 brands.

Explanation:A consideration set consists of all the brands a person intends to purchase.

7 0
3 years ago
The section of Waterways that produces controllers for the company provided the following information.
stepladder [879]

Answer:

Instructiond are listed below.

Explanation:

Giving the following information:

Sales for the month of February 3,800

Variable manufacturing cost per unit $9.00

Sales price per unit $46.00

Fixed manufacturing overhead cost (per month for controllers) $82,000

Variable selling and administrative expenses per unit $4.80

Fixed selling and administrative expenses (per month for controllers) $13,130

A) contribution margin ratio = (selling price - unitary variable cost)/selling price

ontribution margin ratio = (46 - 13.8)/46= 0.7

B) degree of operating level= contribution margin/ EBIT

EBIT= sales - variable costs  - fixed costs= (46-13.8)*3,800 - 82,000 - 13,130= 27,230

degree of operating level= 32.2/27230= 0.0012= 0.12%

C) Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 95,130/0,7= $135,900

D) Margin of safety ratio= (current sales level - break-even point)/current sales level

Margin of safety ratio= (3,800 - 2,954)/3,800= 0.22= 22%

8 0
3 years ago
The differences between small data and big data for companies
Ivenika [448]
Answer:

Small data is data in a volume and format that makes it accessible, informative and actionable. ... Big data is often said to be characterized by 3Vs: the volume of data, the variety of types of data and the velocity at which it is processed, all of which combine to make big data very difficult to manage.
8 0
2 years ago
The following data reflects the number of defects produced on a assembly line at the Deerfield electronics company for the past
Dominik [7]

Answer:

see below

Explanation:

a: sum of all numbers divided by 8 equals:

b: 231 (231+230)/2 rounded

c: no mode

7 0
3 years ago
Purchase Company recently acquired several businesses and recognized goodwill in each acquisition. Purchase has allocated the re
netineya [11]

Answer:

Purchase Company

                                                                  RU-1           RU-2          RU-3

Goodwill Impairment loss (gain)           $8,300      $44,600 ($383,250)

Explanation:

a) Data and Calculations:

Carrying Amounts

                                   RU-1           RU-2          RU-3

Tangible assets   $215,500   $261,000   $158,250

Trademark            257,000

Customer list        154,500

Unpatented technology        232,500

Licenses                                 100,000

Copyrights                                                  65,500

Goodwill               190,250       187,550     136,500

Liabilities              (35,000)

Book values      $782,250    $781,050  $360,250

Fair values        $773,950    $736,450  $743,500

Goodwill Impairment

 loss (gain)           $8,300      $44,600 ($383,250)

b) Purchase Company will recognize Goodwill impairment expense for RU-1 and RU-2.  It will recognize a Goodwill impairment gain for RU-3.  A goodwill impairment gain results when the fair value is higher than the book value of the net realizable assets.

6 0
2 years ago
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