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scoundrel [369]
3 years ago
6

Magnus Inc.'s price is $35 a share, their dividend for last year was $1.90, and the long-term sustainable growth rate is 3.5%. T

he expected return on the stock is closest to:
Business
1 answer:
aliya0001 [1]3 years ago
4 0

Answer:

the expected return on the stock is 8.675%

Explanation:

The computation of the expected return on the stock is shown below:

The Expected return on the stock is

= Current year dividend ÷ Price of the stock + growth rate

= ($1.75 × 1.035) ÷ $35 + 3.5%

= 8.675%

Hence, the expected return on the stock is 8.675%

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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Which of the following is a critical dilemma when implementing fiscal policy in reference to timing lags?
Pepsi [2]

Answer: Option C

Explanation: In simple words, critical dilemma refers to the confusions and problems that may arise and are pretty hard to solve.

While implementing fiscal policies in an economy the authorities must have proper information however the information takes time and cost to get collected and processed.

This situation is called information lag and is a critical dilemma as the individuals in authority have to decide whether to go for information processing and collecting or not.

8 0
3 years ago
To measure system performance, companies use _____, which uses a set of standard tests on one system to compare its performance
Charra [1.4K]

Answer:

benchmark testing

Explanation:

BENCHMARK TESTING can be regarded as method that is devices in the measurement of set of repeatable quantifiable results which usually taken as a point of reference in comparing products/services in a company. A benchmark must be a repeatable one, and it's application is also found in result testing in comparism of the present as well as well as future software releasees along with benchmarks. It should be noted that To measure system performance, companies use benchmark testing which uses a set of standard tests on one system to compare its performance and capacity to that of other systems.

5 0
3 years ago
Benz Company is considering the purchase of a machine that costs $100,000, has a useful life of 18 years, and no salvage value.
Marysya12 [62]

Answer:

B. $14,600

Explanation:

The annual cash inflows associated with the machine can be found by the following expression, where 'r' is the company's discount rate of 12% and 'n' is the useful life of the equipment of 18 years:

-investment+ X*\frac{(1 - (1 + r)^{-n})}{r} =NPV\\\\-\$100,000 + X*\frac{(1 - (1 + r)^{-n})}{r} =\$5,850\\-\$100,000 + X*\frac{(1 - (1 + 0.12)^{-18})}{0.12} =\$5,850\\X=\frac{\$105,850}{7.25} \\X=\$14,600

Annual cash inflows are $14,600.

8 0
3 years ago
Suppose that marginal income tax rates are as follows:Income level Marginal tax rate $0–$10,000 10% $10,000–$50,000 20% Greater
Tatiana [17]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

7 0
3 years ago
A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and had $114,000 in factory overhead costs du
morpeh [17]

We can calculate the cost of goods manufactures using the formula:

Total Cost = Cost of Direct Materials + Direct Labor Cost + Overhead Cost – Inventory

Substituting the known values:

<span>Total Cost = $35,000 + $73,000 + $114,000 – ($32,000 - $28,000)</span>
Total Cost = $218,000      -----> ANSWER

We deduct the initial from the final inventory to get the balance.          

<span> </span>

5 0
3 years ago
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