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dimaraw [331]
3 years ago
13

Use the dividend growth model to determine the required rate of return for equity. Your firm recently paid a dividend of $2.25 p

er share, has a recent price of $40.20 per share, and anticipates a growth rate in dividends of 3.00% per year for the foreseeable future.
Business
1 answer:
lora16 [44]3 years ago
4 0

Answer:

the required rate of return using the dividend growth model is 8.6%

Explanation:

The computation of the required rate of return using the dividend growth model is as follows;

The Required return is

= (Dividend at year 1 ÷ Current price per share) + Growth rate

= ($2.25 ÷ $40.2) + 0.03

= 8.6%

Hence, the required rate of return using the dividend growth model is 8.6%

We simply applied the given formula

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Campus Stop, Inc., is a student co-op. Campus Stop uses a perpetual inventory system.
Zanzabum

Answer:

Campus Stop, Inc.

Partial Income Statement

Sales revenue                              $323,300

Sales returns                                    ($1,730)

Sales discounts and allowances <u>  ($2,270)</u>

Net sales                                       $319,300

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8 0
3 years ago
The main difference between CPM and PERT is Group of answer choices
goldfiish [28.3K]

Answer: CPM and PERT use different activity time estimates.

Explanation:

Program (Project) Management and Review Technique (PERT) is appropriate when the project time needed to complete different activities are unknown while the Critical Path Method or CPM is fitted for recurring projects in nature. PERT deals with activities that are not predictable but CPM deals with repetitive activities. PERT focuses/concentrates on time while CPM focuses on time-cost & trade-off. Also, PERT requires three-time estimate while CPM requires one-time estimate. PERT uses a probabilistic model and on the other hand, CPM uses a deterministic model. In PERT, a technique of planning and controlling time is used but CPM uses a technique to control cost and time.

4 0
3 years ago
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An analysis and aging of the accounts receivable of Yates Company at December 31 reveal these data:Accounts receivable $ 1,600,0
saveliy_v [14]

Answer:

d. $1,470,000

Explanation:

The computation of the cash realizable value of the accounts receivable is shown below:

= Ending balance of accounts receivable - credit balance of uncollectible amount

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= $1,470,000

For finding out the cash realizable value, we deduct the credit balance of uncollectible amount from the ending balance of accounts receivable

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