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katrin [286]
3 years ago
5

2. You have just completed an analysis of Rodriguez Manufacturing. You used the Capital Asset Pricing Model to determine that th

e required rate of return is 13%. The last dividend paid was $1.80, and the current price is $25. Based on new manufacturing processes that the company recently adopted and the company’s history of consistently paying dividends, you believe the company’s dividends will grow at a constant growth rate of 6%.
Business
1 answer:
Katarina [22]3 years ago
6 0

Answer:

You didn´t post the question complete. So I found the expected rate of return. Hope be useful.

Explanation:

Required rate of return on stock = 13%

Expected rate of return is calcualted below Using DDM model:

Expected rate of return = [$1.80 × (1 + 6%) / ($25)] + 6%

= ($1.908 / $25) + 6%

= 7.632% + 6%

= 13.632%

Expected rate of return is 13.632%.

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A merchandising company's budget includes the following data for January: Sales: $400,000; COGS: $270,000; Administrative salari
Maslowich

Answer:

Total general and administrative expenses           $

Administrative salaries                                        1,250

Rent on administrative building                          30,000

Miscellaneous administrative expenses             5,000

Total general and administrative equipment      35,250

Explanation:

The total general and administrative expenses include administrative salaries, rent on administrative building and miscellaneous administrative expenses.

8 0
3 years ago
One of Simplex Company’s products has a contribution margin of $44,000 and fixed costs totaling $54,000. If the product is dropp
levacccp [35]

Answer:

Decrease by $27000

Explanation:

Given that

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Initial fixed cost = 54000

Final fixed cost = 37000

Recall that

Net operating income = Contrubution Margin - Net fixed cost.

NOI = 44000 - (54000 - 37000)

NOI = 44000 - 17000

NOI = $27000

Thus, Net operating income decreased by 27000.

5 0
3 years ago
Produced by paul, the ____________ album was recorded between 2/77 and 1/78 in both the uk and off the virgin islands during six
belka [17]

Answer:

London town

Explanation:

8 0
3 years ago
What is the broad term that refers to all other terms listed below. The term can apply to all divisions and departments​ (such a
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Answer:

C. Policies

Explanation:

Policy is the broad term that can apply to all divisions and departments​ (such as​ "We are an equal opportunity​ employer"), or to a single department​ ("Employees in this department must take at least one training and development course each​ year").

Policy can be defined as the set of rules, ideas and principles of action that are adopted to guide an organization.

6 0
3 years ago
A review of the personal selling process indicates that selling is:
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Answer:

d. a matter of establishing relationships.

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Selling involves creating a relationship with the prospect.

The sales relationship has the short-term value you get from the customer.

There is also the long-term life-time value of the customer to be considered.

Sales based on referrals are the easiest to obtain and give best value.

Good relationships give rise to refrrals.

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