1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Lelechka [254]
3 years ago
13

Brickhouse is expected to pay a dividend of $3.45 and $2.58 over the next two years, respectively. After that, the company is ex

pected to increase its annual dividend at 4.1 percent. What is the stock price today if the required return is 11.9 percent
Business
1 answer:
ICE Princess25 [194]3 years ago
5 0

Answer:

$32.6

Explanation:

Brickhouse is expected to pay a dividend of $3.45 and $2.58 over the next 2 years

The company is expected to increaser it's annual dividend at 4.1%

= 4.1/100

= 0.041

Required return is 11.9%

= 11.9/100

= 0.119

Therefore the stock price for today can be calculated as follows

= 2.58(1+0.041)/0.119-0.041

= 2.58(1.041)/0.078

= 2.6857/0.078

= 34.43

3.46/(1+0.119)+2.58/(1+0.119)^2+34.43/(1+0.119)^2

= 3.46/1.119+2.58/1.119^2+34.43/1.119^2

= 3.093+2.060+27.5

= 32.6

Hence the stock price for today is $32.6

You might be interested in
What Is margin of safety?
skelet666 [1.2K]

Answer:

Margin of safety is a principle of investing in which an investor only purchases securities when their market price is significantly below their intrinsic value. ... Alternatively, in accounting, the margin of safety, or safety margin, refers to the difference between actual sales and break-even sales

5 0
2 years ago
What careers are in the Information Support and Services career pathway of the IT career cluster? (15 points for you)
yKpoI14uk [10]
I think it’s “help desk specialists, PC support specialists”
6 0
3 years ago
Please follow me..........​
GarryVolchara [31]

Answer:

okay I will :) if I do can I get brainliest?

8 0
3 years ago
Read 2 more answers
Observe the Sales Budget and determine which primary responsibility the managerial accountant uses todetermine which quarter gen
pantera1 [17]

Answer:

"Directing" seems to be the right response.

Explanation:

  • Directing seems to be the major concern of the financial analyst to ascertain whether the significant proportion obtained that much sales figures for every unit cost of production throughout addition to changing the marketing campaign.
  • Strategy formulation, trying to organize, staff numbers would not have any significance if the management function doesn't take place.

Therefore the method above is the right one.

4 0
2 years ago
Magic City Enterprises manufactures a beautiful bookcase. Listed below are a number of costs incurred. Identify each cost as eit
FrozenT [24]

Answer:

1. Factory Rent  = Fixed , Product (Indirect Cost)

2. Advertising   = Fixed , Period

3. Packing Supplies for Shipping  = Variable, Period

4. Factory Security Guard  = Fixed, Product (Indirect Cost)

5. Wages of Employees Who Sand the wood  = Variable, Product (Direct Cost)

6. Administrative Assistant in Corporate office  = Fixed , Period

7. Paper Towels in the Men's Room in the Factory  = Fixed , Product (Indirect Cost)

8. Executive Jet  = Fixed, Period

9. Lumber  = Variable, Product (Direct Cost)

10. Depreciation on Factory Tools (Straight-Line) = Fixed, Product (Indirect Cost)

Explanation:

Product versus Period Cost.

A product cost is attached to the cost object and is included in the valuation of the cost object.All manufacturing costs are product costs.

Period costs are not attached to the products. Non-manufacturing costs are Period costs.

Fixed versus Variable.

Behavior of costs in relationship with Activity will tell us whether a cost is a Fixed cost or Variable Cost.

Fixed Costs remain the same for any level of activity, whilst variable costs vary in direct proportion to with the level of activity.

Direct versus Indirect.

By observation of the cost object, we are able to identify is a cost is a direct cost or indirect cost.

Direct costs can be easily traced on the cost object. Indirect costs are difficult to trace on the cost object.

4 0
2 years ago
Other questions:
  • The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to the following information:
    10·1 answer
  • The _____ serves as the jfc's principal organization to draft the commander's information dissemination policy and coordinates i
    13·1 answer
  • Which of the following is a common type of MSD?
    15·2 answers
  • In the​ 1950s, the economist Bela Balassa compared 28 manufacturing industries in the United States and Britain. In every one of
    12·1 answer
  • McKendrick Shoe Store has a beginning inventory of $45,000. During the period, purchases were $195,000; purchase returns, $6,000
    12·1 answer
  • Which of the following is considered to be an entrepreneur? Multiple Choice a self-employed person a production-line worker an M
    10·1 answer
  • On January 1, 2020, Oriole Company had Accounts Receivable $137,400, Notes Receivable $24,000, and Allowance for Doubtful Accoun
    7·1 answer
  • Which of the following is a result of a lower interest rate?
    6·1 answer
  • g Romans sells the Regular blend for $3.60 per pound and the DeCaf blend for $4.40 per pound. Romans would like to place an orde
    15·1 answer
  • Kelly has decided to start his own business giving sailing lessons. To purchase equipment for the business, Kelly withdrew $1,00
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!