Answer:
$66.78
Explanation:
Dividend Valuation method is used to value the stock price of a company based on the dividend paid, its growth rate and rate of return. The price is calculated by calculating present value of future dividend payment.
Value of Share = Dividend / (Rate of return - Growth rate)
P0 = D0 ( 1 + g ) / ( r - g )
where
P0 = Value of stock at time 0 / today = ?
D0 = Dividend paid at time 0 / current = $3.15
g = growth rate = 6%
r = rate of return = 11%
Placing all these values in the formula
P0 = $3.15 ( 1 + 6% ) / ( 11% - 6% )
P0 = $3.339 / 5%
P0 = $66.78
Answer:
Current price of the stock of Jameson company is $18.62. Therefore, the correct option is A
Explanation:
The formula of required rate of return is:
Required rate of return = Risk free rate + Beta × Market risk premium
= 4% + 1.15 × 5%
= 4% 5.75%
= 9.75%
Computation of current stock price is:
Current stock price = Expected dividend per share / (Required rate of return - Growth in dividend)
= (0.75 + [5.50% × 0.75] ) / (0.0975 - 0.055)
= 0.79125 / 0.0425
= $18.62
Answer: $300,000
Explanation:
As overhead is applied on the basis of direct labor cost, the overhead rate for the period is:
= Overhead / Direct labor cost * 100%
= 5,340,000 / 890,000 * 100%
= 600%
If direct labor cost is $50,000 then overhead applied will be:
= Direct labor cost * Overhead rate
= 50,000 * 600%
= $300,000
The Right Response is Option B
b) Borderless World
Today's companies compete in a <u>borderless world.</u>
- The process of contact and integration between individuals, organisations, and governments on a global scale is known as globalisation or globalisation. Since the 18th century, globalisation has increased due to advancements in communications and transportation technologies.
<h3><u>What effects has globalisation had?</u></h3>
- Globalization often lowers the cost of production. This implies that businesses may charge customers less for their products. One important factor that raises the level of life is the average cost of commodities. Additionally, consumers have access to a greater range of items.
To Learn more about Globalization, click the Links.
brainly.com/question/15283031
brainly.com/question/16499151
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