1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
melamori03 [73]
3 years ago
5

Burkhardt Corp. pays a constant $15.25 dividend on its stock. The company will maintain this dividend for the next 9 years and w

ill then cease paying dividends forever. If the required return on this stock is 9.2 percent, what is the current share price
Business
1 answer:
faust18 [17]3 years ago
6 0

Answer:

$90.69

Explanation:

Current share price can be determined by calculating the present value of the cash flows

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 to 9 = 15.25

I = 9.2

PV = 90.67

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

You might be interested in
An example of a cost would be _____. <br> profit<br> revenue <br> fire <br> salaries
tangare [24]
The cost of electricity. <span> because explicit costs are like accounting costs. They are direct costs that come with operating a business. A,B and C are all implicit costs, they are like opportunity costs and do not have any direct value in a accounting perspective.</span>
5 0
3 years ago
Read 2 more answers
If you were to start a business delivering documents, you might need to purchase cell phones, bicycles, desks, and chairs. a. Th
Alex Ar [27]

Answer:

The answer is B.

Explanation:

Capital is what is used to start a business. It is what the owner's contribution in the business. In advanced class, it is called stock or equity. Capital is usually from the owner's savings. But if this money is borrowed either from an individual or a bank, the person is a borrower while the other party is the lender.

Option A is incorrect because money raised from someone makes the person borrowing a borrower and not a saver.

Option C and D are incorrect because the items needed for the business are not consumables, they are needed for the smooth running of the business, hence they are not consumption.

4 0
3 years ago
Anne is a full-time student at UCLA buts works part-time as a waitress at a diner near her dormitory. She earns an hourly wage b
miss Akunina [59]

Answer:

In California, if the tip is included in the service charge, Anne's employer must pay taxes for them. The employer is required to pay for these taxes in California, not the employee. Even though tips are not part of an employee's wage, they are still taxable. This means that Anne must include the $51 in her AGI.

5 0
3 years ago
Free cash flow describes the net cash provided by operating activities after adjusting for A : current liabilities. B : both cap
Nikolay [14]

Answer:

The answer is B, both capital expenditure and dividends paid.

Explanation:

In the Statement os Cash Flow, cash provided by operating activities fails to take into account that a company must invest in a new property, plant, and equipment and must maintain dividends at current levels to satisfy investors.

Free cash flow describer the net cash provided by operating activities after adjusting for capital expenditures and dividens paid.

7 0
3 years ago
The following information has been provided by New​ Age, Inc.:
N76 [4]

Answer:

(D) $ 4,950

Explanation:

The computation is shown below

As We know that

Ending work in process inventory = Opening work in process inventory + total manufacturing cost - cost of goods manufactured

where,  

Total manufacturing cost = Direct materials used + direct labor cost + manufacturing overhead  cost

= $10,000 + $25,800 + $19,200

= $55,000

So, the opening work in process inventory would be

$11,200 = Opening work in process + $55,000 - $48,750

So, the opening work in process is

= $4,950

7 0
3 years ago
Other questions:
  • A store that sells books and a store that sells tools are what type of competitors? (Select the best answer.) Indirect competito
    10·1 answer
  • ​John, a purchasing​ agent, is offered an​ all-expense paid trip to Hawaii by a supplier if he agrees to award a substantial amo
    8·1 answer
  • Nell and Kirby are in the process of negotiating their divorce agreement. What should be the tax consequences to Nell and Kirby
    14·1 answer
  • Which of the following would have no effect, either direct or indirect, on an organization's cash budget?
    13·1 answer
  • The fair value of net identifiable assets of a reporting unit of Y Company is $270,000. The carrying value of the reporting unit
    11·1 answer
  • Bellue Inc. manufactures a single product. Variable costing net operating income was $115,600 last year and its inventory decrea
    15·1 answer
  • Walkane Juices is planning to launch a line of flavored beverages. It encourages consumers to take a $1,000,000 Taste Challenge.
    15·1 answer
  • Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Lab
    15·1 answer
  • Zetatron is an all-equity firm with 100 million shares outstanding, which are currently trading for $7.50 per share. A month ago
    11·1 answer
  • openstax Michael Bronner made a killing in the direct marketing business as the cofounder and CEO of Bronner Slosberg Humphrey,
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!