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Katena32 [7]
3 years ago
9

You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 3.9 percent indefinitely

. The company just paid a dividend of $3.62 and you feel that the required return on the stock is 11.7 percent. What is the price per share of the company's stock
Business
1 answer:
yKpoI14uk [10]3 years ago
5 0

Answer:

$48.2

Explanation:

The increase in dividend is 3.9%

= 3.9/100

= 0.039

The recently paid dividend is $3.62

The required return is 11.7%

= 11.7/100

= 0.117

Therefore the price per share of the company stock can be calculated as follows

= 3.62(1+0.039)/0.117-0.039

= 3.62(1.039)/0.078

= 3.761/0.078

= 48.2

Hence the price per share is $48.2

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Sunland Company uses a periodic inventory system. For April, when the company sold 550 units, the following information is avail
Lady_Fox [76]

Answer:

Ending inventory cost= $10,900

COGS= $15,940

Explanation:

<u>To calculate the  ending inventory using LIFO (last-in, first-out) method, we need to use the cost of the lasts units incorporated into inventory:</u>

Ending inventory in units= 1,000 - 550= 450

Ending inventory cost= 340*23 + 110*28= $10,900

<u>Now, the cost of goods sold:</u>

COGS= 270*30 + 280*28= $15,940

8 0
3 years ago
Cheese Factory Incorporated reported the following information for the fiscal year ended August 31, 2015.
Slav-nsk [51]

Answer:

              CHEESE FACTORY INCORPORATED

                            Income Statement

                For the Year Ended August 31, 2015

Revenues:  

Sales revenue                                                 $1,738,000

Total revenue                                           $1,738,000

Expenses

Salaries and wages expense  $975,000

Office expenses                       $115,000

Utilities expense                       $550,000

Total expenses                                                <u>$1,640,000</u>

Net income                                                      <u>$98,000</u>

                CHEESE FACTORY INCORPORATED

                   Statement of Retained Earnings

              For the Year Ended August 31, 2015

Retained earnings, beginning       $414,000

Add: Net income                            $98,000

Less: Dividends                              <u>$14,000  </u>

Retained earnings, ending           <u>$498,000</u>

6 0
2 years ago
Which of the following is a case of brand cannibalization?
alexandr1967 [171]

Answer:  C. A tea manufacturer introduces a new brand of tea that eats into the sales of an existing tea brand in its product mix.

Explanation:

3 0
2 years ago
What is a complex sentence​
mixer [17]

Answer:

A complex sentences has at least one subordinate clause.

Explanation:

6 0
3 years ago
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Which of the following requirements must be met for a redemption to be treated as substantially​ disproportionate? A. The shareh
Verdich [7]

Answer:

the answer is C

Explanation:

why ? the redemption is used for marketing to define or even to know how in the future your company reach their economic profit levels,and also to the shareholder benefits,  so that's why when the company put on the market the outstanding stock , they decide how many any shareholder could get. they are looking always to increase their own business but if the company say that after redemption you must own less than 80% of his percentage ownership, its not common , nobody could get less even 50% of his own outstanding shares stock.

7 0
2 years ago
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