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2 years ago

Limitations of managerial economics

1 answer:

7 0

Managerial economics usually deals with the application of theories ,concepts and tools to solve the real life business problems. There are some drawbacks of this managerial economics too. Sometimes the business problems becomes very unique that the theories and methodologies becomes unable to solve the problem.

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The next dividend payment by Savitz, Inc., will be $2.34 per share. The dividends are anticipated to maintain a growth rate of 4

STALIN [3.7K]

Answer:

a. 10.8%

b. 6.32%

c. 4.5%

Explanation:

a. Required return= (Expected dividend payment/current stock price) + dividend growth rate

Required return= (2.34/37)+0.045

Required return= 0.108 ⇒ 10.8%

b. Dividend yield= dividend per share / price per share

Dividend yield= 2.34/37= 0.0632 ⇒ 6.32%

c. The capital gains yield refers to the rise in the price of the stock. In this case, the statement indicates that the dividends are anticipated to maintain a growth rate of 4.5 percent forever and according to the definition of capital gains yield that would be the answer for the expected capital gains yield.

3 0

2 years ago

During 2020, Karen Building Company constructed various assets at a total cost of $12,600,000. The weighted average accumulated

Ivan

Answer:

a. $842,250

b. $842,250

Explanation:

The computation is shown below:

a. For avoidable interest

Weighted average Interest rate applied avoidable interest

accumulated expenditures

$5,205,000 10% $520,500

$2,925,000 11% $321,750

Total $842,250

($8,130,000 - $5,205,000)

Working note for interest rate applied

Particulars Principal Interest

12% ten year bond $6,047,000 $725,640

9% 3 year bond $3,023,500 $272,115

total $9,070,500 $997,755

Now the interest rate is

= $997,755 ÷ $9,070,500

= 11%

2. Now the total interest capitalized is

Total interest is

= $520,500 + $725,640 + $272,115

= $1,518,255

And, the total avoidable interest is $842,250

So we considered the lesser amount i.e. $842,250

6 0

2 years ago

According to a summary of the payroll of Sinclair Company, $505,000 was subject to the 6.0% social security tax and $545,000 was

Musya8 [376]

Answer:

Explanation:

1. The computation is shown below:

State unemployment = $10,000 × 4.2% = $420

Federal unemployment = $10,000 × 0.8% = $80

2. The journal entry is shown below:

Payroll tax expense A/c Dr $38,975

To Social security tax A/c $30,300 ($505,000 × 6.0%)

To Medicate tax A/c $8,175 ($545,000 × 1.5%)

To State Unemployment tax payable A/c $420

To Federal Unemployment tax payable A/c $80

(Being the payroll tax expense is recorded)

8 0

2 years ago

Each of the four types of checking accounts listed in the table above offers free ATM

Kaylis [27]

Yes it will
gib branliest

4 0

2 years ago

Widget Maker Manufacturing uses job costing. In May, material requisitions were $ 44,300 ($ 39,700 of these were direct mater

Airida [17]

Answer:

Beginning Material = $11,500

Explanation:

given data

material requisitions = $44,300

direct materials = $39,700

raw material purchases = $58,100

end month balance raw materials inventory = $25,300

to find out

beginning raw materials inventory balance

solution

we know that Beginning Material is express as here

Beginning Material = Ending Material - Purchases + Requisitions ..............1

put here value in equation 1 we get

Beginning Material = Ending Material - Purchases + Requisitions

Beginning Material = $25,300 - $58,100 + $44,300

Beginning Material = $11,500

3 0

2 years ago