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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

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On January 2, 2020, Orange Corporation purchased equipment for $300,000 with an ADS recovery period of 10 years and a MACRS usef
Sveta_85 [38]

Answer:

decrease $49,605

Explanation:

corporation purchased eqipment = $ 300000

ADS recovery period = 10 years

MACRS useful life of 7 years

th eequipment sold for $290,000

The result is option d. Decrease $ 49,605

4 0
3 years ago
Find the average variable cost for producing 18 sneakers. Round your answer to the nearest hundredth.
murzikaleks [220]

Answer: $2.78

Explanation:

Average variable cost is calculated by dividing the total variable cost of producing a certain number of units of a good by that same number of units.

Average variable cost = Variable cost of producing 18 sneakers / 18

= 50 / 18

= 2.7778

= $2.78

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3 years ago
The process for motivating employee performance in which the manager and employee jointly set objectives for the employee, the m
antoniya [11.8K]

Answer:

The correct answer is: Management by Objectives (MBO).

Explanation:

Management by Objectives (<em>MBO</em>) is a process in which a manager an employees agree on specific performance goals and then develop a plan to reach those goals. First outlined in Peter Drucker's 1954 book "<em>The Practice of Management</em>", MBO ensures better employee participation and commitment while aligning objectives throughout an organization.

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3 years ago
Carter Corporation has some money to invest, and its treasurer is choosing between City of Chicago municipal bonds and U.S. Trea
padilas [110]

Answer:

If Chicago municipal bonds yield  is 10% then Carter's treasurer make indifferent between the two.

Explanation:

Because Treasury Bond is exempt from tax income and both have same maturity, and they are equally risky and liquid; we then have the equation as below

Treasury bonds yield = Chicago municipal bonds yield after tax

⇔ 6% = Chicago municipal bonds yield * (1 - tax rate 40%)

⇔ 6% = Chicago municipal bonds yield * 0.6

⇒ Chicago municipal bonds yield = 6%/  0.6 = 10%

3 0
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Transaction Processing Systems (TPS) can make decisions using predetermined rules and processes. This is an example of a(n) ____
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TPS can make decisions based on pre-defined rules and processes. This is an example of an operational control's structured decision.

<h3>What is Transaction Processing Systems?</h3>

Transaction processing system is also denoted as TPS. It is a method of computing that breaks down work into discrete, indivisible activities known as transactions.

A transaction processing system is a software or may be hardware combination that facilitates transaction processing.

Therefore, the TPS is an example of a structured decision of an operational control.

Learn more about the Transaction Processing Systems, refer to:

brainly.com/question/11621307

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3 0
2 years ago
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