1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
5. Explain what would happen to interest rates if a new process was developed that allowed automobiles to run off oil that was f
guapka [62]

Answer:

When the new processes are developed for manufacturing it results in interest rate fluctuations. However, operational costs would become uncertain which would further affect the total production costs. Thus the value of an investment would be impacted. Automobile demand from the customers will also get affected. thus, fall in interest rate will have a significant and positive affect on the sale of automobiles as well as revenue.

8 0
2 years ago
Colil Computer Systems, Inc., manufactures printer circuit cards. All direct materials are added at the inception of the product
bonufazy [111]
他們會不會覺得不得不承認是自己的問題,他們會不會覺得
7 0
2 years ago
Why was it sometimes difficult to balance a checking account to a statement?
Juliette [100K]
Because sometimes the check written after the statement closing dates.

Lets say a company do a closing statement on December 26.

 A check written between that date until the end of period ( December 26 - December 31), that transaction simply won't appear on the book because the company already closed the statement on December 26
6 0
3 years ago
Parkway Company incurred $126,000 in material costs during July. Additionally, the 12,000 units in the Work-in-Process Inventory
IRINA_888 [86]

Answer:

$ 13.167 / unit

Explanation:

Data provided:

Beginning material cost = $ 126,000

Number of units in work in progress = 12,000 units

Material cost assigned = $ 32,000

thus,

the total material cost involved = $ 126,000 + $ 32,000 = $ 158,000

Now,

the material cost per equivalent unit = Total material cost involved / number of units

on substituting the values, we have

the material cost per equivalent unit = $ 158,000 / 12,000

or

= $ 13.167 / unit

7 0
3 years ago
Rainbow Corp. hires a new secretary, Polonova, who differs from the vast majority of the company's employees in terms of her eth
irakobra [83]

Answer:

A) Polonova has a strong sense of personal ambition and independence.

Explanation:

From the question we are informed Rainbow Corp. who hires a new secretary, Polonova, who differs from the vast majority of the company's employees in terms of her ethnicity. The company has a collectivist culture with a culturally diverse workforce and several policies to support the minorities. Yet, after a few weeks, she quits the company. In this case, she quit because Polonova has a strong sense of personal ambition and independence.

Personal Ambition can be regarded as strong desire as well as aspiration to work towards acheiving something or goals which requires alot of dedication and extra work. Personal independent also require the ability of someone to independently carry out some task productivity with freedom of choice in an organization.

4 0
3 years ago
Other questions:
  • Based on a predicted level of production and sales of 22,000 units, a company anticipates total variable costs of $99,000, fixed
    13·1 answer
  • Bad girls not allowed<br><br>need a good friend<br><br>373 629 9840<br><br>444000​
    7·2 answers
  • Which of the following statements is INCORRECT? A : Faithful representation results when different companies use the same accoun
    15·1 answer
  • Caterpillar is a manufacturer of heavy machinery that is sold around the world. A growing business for this U.S.-based company a
    5·1 answer
  • Ming applies for a job as a receptionist at an engineering firm. If she is denied a job because she is of Asian origin, she may
    8·1 answer
  • Dante’s employer pays for insurance for doctor visits and hospital visits. However, Dante has to pay for his own prescriptions.
    13·1 answer
  • At the beginning of the accounting period, Nutrition Incorporated estimated that total fixed overhead cost would be $50,600 and
    12·1 answer
  • For planning control, and decision-making purpose:
    5·1 answer
  • Which of the following is an economic cost of instability?
    13·1 answer
  • Amy and Mack Holly from Rapid City, South Dakota, have been married for three years. They recently bought a home costing $212,00
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!