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Semmy [17]
3 years ago
14

A firm plans to begin paying a constant annual dividend of $1.50 a share beginning five years from now. If you require a rate of

return of 7%, what is the most that you would be willing to pay for a share of this stock TODAY?
Business
1 answer:
balandron [24]3 years ago
3 0

Answer:

the current stock price is $16.35 per share

Explanation:

The computation of the current stock price is shown below:

Price of share in Year 4 would be

= Annual Dividend ÷ Required rate of return

= $1.50 ÷ 0.07

= $21.43 per share

Now the current stock price is

Stock Price Today is

= Future Stock Price ÷  (1 + rate of interest)^number of years

= $21.43 ÷ (1 + 0.07)^4

= $21.43 ÷ 1.31080

= $16.35 per share

hence, the current stock price is $16.35 per share

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Tiptoe shoes had annual revenues of $201,000, expenses of $111,700, and dividends of $24,400 during the current year. the retain
Andreyy89

Entry to close the income summary account at the end of the year:


At the time of closing the Income Summary account, the Income Summary account is debited and Retained earnings account is credit with the amount of Net Income. Net Income can be calculated as follows:


Net income =  Revenue – Expenses  = 201,000-111,700 = $89,300


Hence the entry to close the income summary account at the end of the year shall be as follows;


Income Summary Debit  $89,300

Retained earnings Credit $89,300





4 0
3 years ago
Select the examples that best represent Architecture and Construction customers. Check all that apply.
Sloan [31]

Answer:

Explanation:

1 5 6

7 0
3 years ago
Read 2 more answers
Which jobs would be included in the Marketing, Sales, and Service career cluster?
Alinara [238K]

Answer:

Survey Researcher

Public Relations Specialist

Telemarketer

Purchasing Manager

Explanation:

I just got this answer correct on my online exam.

7 0
3 years ago
Dean's Coffee Shop makes a blend that is a mixture of two types of coffee. Type A coffee costs Deon $4.75 per pound, and type B
sergiy2304 [10]

Answer:

type B 50 pounds

type A 94 pounds

Explanation:

First we construct the equation system:

\left \{ {{A_q + B_q = 144} \atop {4.75A_q + 5.9B_q = 741.5}} \right. \\

Now we clear one and replace:

A_q = 144 - B_q\\4.75A_q + 5.9B_q = 741.5\\4.75(144 - B_q) + 5.9B_q = 741.5

And we can solve for type B:

4.75\times 144 - 4.75B_q + 5.9B_q = 741.5\\1.15B_q = 741.5 - 684\\B_q = 57.5 / 1.15 = 50

And now we can solve for quantity of A as well:

A = 144 - 50 = 94

<u>Finally we can check the answer if it is correct:</u>

50 x 5.9 + 94 X 4.75 =

   295       +      446,5‬   = 741,5‬

5 0
3 years ago
Assume a company had the following production costs: Direct labor $ 2 per unit Direct material $ 3 per unit Variable overhead $
Mamont248 [21]

Answer:

Total production cost $ 14 per unit  Under absorption costing True

The total product cost per unit when 4,000 units are produced would be $22.50  False

Explanation:

Direct labor $ 2 per unit

Direct material $ 3 per unit

Variable overhead $ 4 per unit

Total variable $ 9 per unit

Fixed overhead ($50,000/10,000 units) $ 5 per unit

Total production cost $ 14

Production Costs involve the fixed costs under absorption Costing. So the total Product cost under absorption costing is $ 14.

When 4,000 units are produced the production costs are as follows

Absorption Costing: 4,000 * 14= $ 56,000

Variable Costing : 4000 * 9= $ 36,000

So the second statement is false.

3 0
3 years ago
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