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Kay [80]
2 years ago
10

The Firm X just paid a dividend of $1.26 per share on its stock. The dividends are expected to grow at a constant rate of 5% per

year indefinitely. If investors require a 10% return on Firm X stock, what is the current price?
Business
1 answer:
Anastaziya [24]2 years ago
5 0

Answer: $26.46

Explanation:

The value of the stock can be solved using the Gordon growth model.

= \frac{Current dividend * (1 + growth)}{required return - growth rate} \\\\= \frac{1.26 * (1 + 0.05)}{0.10 - 0.05}\\\\= 26.46

= $26.46

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Over the course of a year, Retail Market, Inc., sells goods from its inventory and one of its warehouses. In exchange, Retail re
maria [59]

Answer:

The answer is: D) The sale of the goods.

Explanation:

Article 2 of the Uniform Commercial Code (UCC) governs contracts for the sales of goods. Goods are defined as movable property. Usually the sales of services are not included in Article 2, unless the transaction includes the sales of goods. The sales of intangible assets is not included either.

5 0
3 years ago
Holly and matt want to use the "nonworking" spouse method to determine the amount of life insurance coverage they need. if their
Maksim231197 [3]

The best answer for this question would be:

 

$150,000

 

Because in the method of the “non-working” spouse method, they are given a calculation of (18 - youngest child's age) × $10,000 (18 being the legal age)

 

Resulting that the solution would be:

<span> (18 - 3) × $10,000 = $150,000</span>

8 0
3 years ago
Hilton's​, a​ home-improvement store​ chain, reported these summarized​ figures:_______.
Nataly_w [17]

Answer:

a. 2017 ⇒ 1.50

   2016 ⇒1.58

b. Deteriorate

Explanation:

a. Current ratio 2017

= Current Assets / Current liabilities

= 6,708,700 / 4,470,000

= 1.50

Current ratio 2016

= 5,848,000 / 3,700,000

= 1.58

b. The current ratio went from 1.58 in 2016 to 1.50 in 2017 which would mean that it deteriorated.

8 0
2 years ago
Zanda Corp. and Jones Corp. are identical in every way (products produced, costs, demand, etc.) except for one. Zanda uses a lev
Natali [406]

Answer: (C) Zanda will have higher inventory carrying costs.

Explanation:

  The inventory carrying cost is one of the type of overall holding inventory cost that helps in identifying the various types of business expenses and also storing the various types of unsold goods and the services in the market.  

The inventory carrying cost is also known as the holding cost and it is basically responsible for handling the cost system by using the estimated formula.

According to the given question, Zanda corporation is basically using the level production plan for the purpose identifying their business factors such as costs, demand and the products.

So, based on the given information is Zanda will have the high inventory carrying cost statement is true. Therefore, Option (C) is correct answer.  

 

3 0
3 years ago
2. The European Union and the United States are trading partners. (a) If the current account balance is zero, will an increase i
nalin [4]

Answer: Deficit

Explanation:

The current account shows the difference between imports and exports as well as net income from outside.

If this balance is zero, it means that imports are equal to exports and income sent abroad equals income recovered from abroad.

If real income in the US was to increase, people would demand more goods and services including more imports. This will shift the current account to a deficit as the imports will surpass the exports.

3 0
3 years ago
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