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11111nata11111 [884]
3 years ago
11

Sand Point Corporation's common stock recently paid a dividend of $1.50. Investors require a 16% rate of return on this stock. S

and Point earns a 30% return on equity. The firm pays 60% of its earnings as dividends, and reinvests 40% of earnings in the firm. What is the value of the stock
Business
1 answer:
Nikolay [14]3 years ago
6 0

Answer: $42

Explanation:

Value can be found using the Gordon Growth model;

= (Current dividend * (1 + Growth rate)) / ( required return - growth rate)

Growth rate =  Retention ratio * Return on equity

= 40% * 30%

= 12%

Value = (1.50 * 1.12)/ ( 16% - 12%)

= $42

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Matt Shaw buys 100 shares of common stock for $8,000 in January. The value of the stock fluctuates in a narrow range (averaging
jekas [21]

Answer:

a. $8,200

Explanation:

The same accounting principles would be applied to non-profit entities while recording their assets as applied to other entities.

Non-profit entity would record its assets at fair value same as assets are recorded by other entities.

3 0
3 years ago
A cost is $11,000 at 1,000 units, $12,000 at 2,000 units, and $13,000 at 3,000 units. Using the high-low method, how much is the
Misha Larkins [42]

Answer:

Fixed costs= $10,000

Explanation:

Giving the following information:

Highest activity cost= $13,000

Highest activity= 3,000 units

Lowest activity cost= $11,000

Lowest activity= 1,000 units

<u>To calculate the unitary variable cost and total fixed cost, we need to use the following formulas:</u>

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (13,000 - 11,000) / (3,000 - 1,000)

Variable cost per unit= $1

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 13,000 - (1*3,000)

Fixed costs= $10,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 11,000 - (1*1,000)

Fixed costs= $10,000

6 0
3 years ago
If the structural unemployment rate is 3%, the frictional unemployment rate is 2%, and the cyclical unemployment rate is 4%, the
Damm [24]

Answer:

False

Explanation:

In this scenario, the natural rate of unemployment would be 5% = 3% of frictional unemployment plus 2% of cyclical unemployment. The other type of unemployment that is part of the natural rate is not referenced in the question (surplus unemployment).

Cyclical unemployment is not added up because it is not part of natural unemployment.

In fact, what natural unemployment basically is, is unemployment that does not depend on business cycle, that is not cyclical. In that sense, cyclical unemployment is totally the opposite to natural unemployment, and you only reach a rate of natural unemployment, when cyclical unemployment is eliminated in a healthy economy.

5 0
3 years ago
The basis of competition is freedom of ______ exercised in the pursuit of ______.
Mazyrski [523]

The basis of competition is freedom of choice exercised in the pursuit of money.

<h3>What is competition?</h3>

Competition is a scenario where different economic firms are in contention to obtain goods that are limited by varying the elements.

The purpose of competition is for businesses to try to outdo each other in order to earn more.

Also, competition enable businesses come up with newer ways to please their customers, hence come up with amazing innovative ideas and better products.

Hence, the basis of competition is freedom of choice exercised in the pursuit of money.

Learn more about economic competition here : brainly.com/question/967467

8 0
2 years ago
A basic objective of a CPA firm is to provide professional services that conform with professional standards. Reasonable assuran
Vsevolod [243]

It should be noted that basic objective of a CPA firm is to provide professional services, and this is done by system of quality control.

With the establishment of quality control policies as well as procedure, reasonable assurance can be provided.

<h3>What are objective of a CPA firm?</h3>

The objective of a CPA firm is to be in control of the system and regulate the system activities.

objective of a CPA firm at;

brainly.com/question/14175988

6 0
2 years ago
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