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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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scoundrel [369]

Answer:

Net realizable value.....Option C

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3 years ago
Which of the following is an economic change that can affect careers?
ArbitrLikvidat [17]

c) a big recording company buys a small independent label

It is typical in capitalistic economies for larger companies to buy out their competition, absorbing smaller companies. This kind of economic change can result in large changes in management for the smaller companies because the company that now owns them may hire or fire people based on what they feel best meets the needs of the newly acquired company.

7 0
3 years ago
Grain's alternative corporation has a predicted operating income of 80,000. The managerial accountant reported that total variab
dexar [7]

Answer:

Number of units needed to reach the operating income of 80,000: 5,200 units

Explanation:

Please find the below for detailed calculations and explanations:

To achieve $80,000 of operating income, denote the number of units needs to be sold is x.

For each unit sold, the incremental in profit will be 20.

Thus, to achieve the profit of 80,000, the amount of x units sold will generate the profit before fixed cost that covers 24,000 fixed cost and 80,000 targeted profit. So, we have:

80,000 + 24,000 = 20x <=> x = 5,200 units.

* For quick calculation purpose, we may apply the formular: Units need to be sold to achieve targeted income = (Fixed cost + targeted income)/ Contribution margin per unit in monetary form.

8 0
3 years ago
Sarah's Muffler Shop has one standard muffler that fits a large variety of cars. Sarah wishes to establish a reorder point syste
fenix001 [56]

Answer:

Best reorder size = 216

Reorder point = 35

Explanation:

Required:

Using the above information, find the best order size and the reorder point.

To find the best order size, EOQ, use the formula:

EOQ = \sqrt{\frac{2DS}{H}}

= \sqrt{\frac{2*3500*50}{0.25*30}}

= \sqrt{\frac{350000}{7.5}}

= 216.02

Best reorder size is 216 mufflers

To find the reorder point, use the formula:

R = d' L + z \sigma_L

Where d' = average daily demand

L = lead time in days

z = number of standard deviation from a specified probability

\sigma_L = standard deviation of usage in lead time

Daily demand, d'= \frac{3500}{300} = 12

12 mufflers

Since lead time is 2 working days, standard deviation of lead time \sigma_L = \sqrt{2} * 6 = 8.48

Therefore,

R = d' L + z \sigma_L

= (12 * 2) + (1.28 * 8.48)

= 24 + 10.9

= 34.9

Approximately 35

Reorder point is = 35 mufflers

8 0
3 years ago
Eighty percent of your business comes from 20% of your
ra1l [238]

the answer I believe is effort. any business owner has to contribute and keep track of sales and what to discount 2 keep business functional, and profitable..

5 0
3 years ago
Read 2 more answers
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