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erica [24]
3 years ago
5

NoGrowth Industries presently pays an annual dividend of $ 1.90 per share and it is expected that these dividend payments will c

ontinue indefinitely. If​ NoGrowth's equity cost of capital is 11​%, then the value of a share of​ NoGrowth's stock is closest​ to: A. $ 20.72 B. $ 19.00 C. $ 17.27 D. $ 13.82
Business
1 answer:
dybincka [34]3 years ago
5 0

Answer:

$17.27

Explanation:

The stock intrinsic value is calculated using dividend discounted model (DDM). The DDM is stated as below:

Stock intrinsic value = [This year dividend x (1 + Dividend growth)]/[Equity cost of capital - Dividend growth]

                                  = [1.9 x (1 + 0%)]/[11% - 0%] = $17.27

So vlaue of NoGrowth's stock is estimated at $17.27

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b. Assuming that college costs continue to increase at 4% per year and that all her college savings are invested in an account p
irinina [24]

Answer:

savings is  $97107.29

Explanation:

given data

college costs increase = 4% per year

invested paying r = 7%

available age g =  18

solution

we consider here Current Fees per year = $12500

we get here future value for 18 year that is

future value = 12500 × (1+0.04)^{18}     ...............1

future value FV = $25322.71

and

present value of growing annuity find the four years college fee

so here

Total Money =  (\frac{FV}{r-g})\times (1-(\frac{1+g}{1+r})^t)\times  (1+r)     ................2

so put here value

Total Money = (\frac{25322}{0.07-0.04})\times (1-(\frac{1+0.04}{1+0.07})^4)\times (1+0.07)

Total Money = 97107.288177

so that savings is  $97107.29

8 0
3 years ago
The degree to which team members interact with and rely on other team members for the information, materials, and resources need
Mariulka [41]

Answer:

task interdependence is the correct answer.

Explanation:

The degree to which team members interact with and rely on other team members for the information, materials, and resources needed to accomplish work for the team is known as task interdependence.

The goal of task interdependence  is to alleviate the problems that arise when various assignments overlap and become the potential for disagreement.

Task interdependence within the team is an extent where the team members should communicate with each other to achieve their responsibilities and tasks.

Knowledge of task interdependence benefits company owners grasps how various branches and team members depend on the performance of each other.

5 0
4 years ago
Utica Company has offered to supply Kingston's entire annual requirements of the part for $53 each. If Kingston buys the part fr
miss Akunina [59]

Answer:

$480,000

Explanation:

Calculation to determine what total relevant costs to make the part internally are

First step is to calculate Relevant cost per unit:

Relevant cost per unit:

Direct materials $6

Direct labor $24

Variable manufacturing overhead $12

Fixed manufacturing overhead ($15 × 0.40) $6

Relevant manufacturing cost $48

Now let determine the Total relevant costs to make the part internally

Total relevant costs to take the part internally=($48 × 10,000)

Total relevant costs to make the part internally = $480,000

Therefore total relevant costs to make the part internally are $480,000

5 0
3 years ago
The president of Nash Company is considering a proposal by the factory manager for the purchase of a machine for $72,500. The us
n200080 [17]

Answer:

B. $2,190

Explanation:

Calculation for the net present value of the proposal

Using this formula

Net present value=(Annual cash flow×Discounted present value)- Machine purchase amount

Let plug in the formula

Net present value=($14,000 ×5.335)-$72,500

Net present value=$74,690-$72,500

Net present value= $2,190

Therefore the Net present value will be $2,190

6 0
4 years ago
It is the goal of the managers at Trevor's company to rework the production line so that it produces as many automobile parts as
raketka [301]

Answer:

management strategy

Explanation:

By improving the companies management strategy the the manager in trevor's company would be able to gain competitive advantages and also achieve the companies objectives with the required resources.

5 0
4 years ago
Read 2 more answers
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