Consider ktu as a production system in which the final product is graduate for this

Schnusenberg Corporation just paid a dividend of D 0 = $0.75 per share, and that dividend is expected to grow at a constant rate

natta225 [31]

Answer:

Current stock price will be $14.50

So option (a) will be correct answer

Explanation:

We have given dividend paid $D_0=$0.75\ per\ share$

Growth rate g = 6.5 %

Required return on market = 10.50 %

Risk free return = 4.50 %

$\beta =1.25$

So next dividend $D_1=0.75\times (1+0.065)=$0.798$

We have to find thcompany current stock price $P_0$

Required rate of return is given by

Required rate of return = Risk Free Return + $\beta (market\ return-risk\ free\ return)$

= 4.5+1.25×(10.5-4.5) = 12 %

Now current stock price $P_0=\frac{D_1}{R_e-g}=\frac{0.798}{0.12-0.065}=$14.50$

So option (a) will be correct option

3 0

4 years ago

Concord Corporation reported the following information for 2016: October November December Budgeted sales $430000 $400000 $51000

hodyreva [135]

Answer:

a. $84,000

Explanation:

Given, credit purchases are 40% of the sales, will be collected in the following month

Credit purchase = Budgeted purchase * 40%

Credit purchase = $210,000 * 40%

Credit purchase = $84,000

So, the budgeted balance for Accounts Payable at October 31, 2016 is $84,000.

5 0

3 years ago

Darcy Roofing is faced with a decision. The company relies very heavily on the use of its 60-foot extension lift for work on lar

marishachu [46]

Answer:

Darcy should replace the lift

Explanation:

Scenario 1: Darcy Roofing keeps the old lift

refurbishing costs ($31,000)

no other changes in revenues or costs*

net cash flow = ($31,000)

*The $67,200 spent repairing the lift the previous year are considered sunk costs because they cannot be recovered regardless of what decision the company makes.

Scenario 2: Darcy Roofing purchases a newer lift

cost of newer lift ($132,500)

salvage value of old lift $19,500

reduced costs per year x 6 years = $22,400 x 6 = $134,400

additional rental income x 6 years = $8,000 x 6 = $48,000

net cash flow = $69,400**

**Since we are not given any discount rate, we cannot discount the cash flows to determine the present value of the project. With a discount rate of 0, the NPV of purchasing the lift is much higher than the alternative of keeping the old lift.

3 0

3 years ago

A researcher designed an experiment to determine if consumption of caffeine results in increased levels of motor activity. in th

makvit [3.9K]

In the study above, the independent variable would be the consumption of caffeine. The independent variable is the variable that is not affected in any change that is done to the experiment. Most likely, it is the one that is being manipulated and in this experiment it the consumption of caffeine.

5 0

3 years ago

George runs a small retail business. He sells brands that another business manufactures. George’s retail store uses the logos an

KIM [24]

Answer:

trademark franchise

4 0

3 years ago