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grin007 [14]
3 years ago
11

The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.52 per share on its stock. The dividends are expected to grow at

a constant rate of 7 percent per year indefinitely.
Required:

a. If investors require a 11 percent return on The Jackson-Timberlake Wardrobe Co. stock, what is the current price?
b. What will the price be in 8 years?
Business
1 answer:
Stolb23 [73]3 years ago
6 0

Answer:

A. $40.66

B. $69.86

Explanation:

A. Calculation for what is the current price

Using this formula

Current price=Dividend per share(1+Expected constant rate)/ (Require return percentage-Expected constant rate)

Let plug in the formula

Current price=1.52(1+.07) / (.11-.07)

Current price=1.52(1.07) / (.11-.07)

Current price=1.6264/0.04

Current price=$40.66

Therefore the Current price will be $40.66

b. Calculation for What will the price be in 8 years

Using this formula

Price=Dividend per share(1+Expected constant rate)^Numbes of years/ (Require return percentage-Expected constant rate)

Price=1.52(1+.07)^9/ (.11-.07)

Price=1.52(1.07)^9/ (.11-.07)

Price=2.7945/0.04

Price=$69.86

Therefore What will the price be in 8 years is $69.86

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kotykmax [81]

Answer:

The correct answer is letter "C": life is the total cost divided by the total annual depreciation.

Explanation:

The composite depreciation method uses the straight-line depreciation to rate and average the loss of value in given assets. It divides the useful life figure by the total depreciable cost to arrive at the total depreciation per year. It is helpful to determine the depreciation in a complete class of assets.

3 0
2 years ago
A marketing company wants to estimate the proportion of consumers in a certain region of the country who would react favorably t
Sindrei [870]

The closest to the minimum number of consumers needed to obtain the estimate with the desired precision is (b) 271

Explanation:

When the prior estimate of population proportion is not given , then the formula to find the sample size is given by :-

n=0.25(\frac{z^{*} }{E} )^{2}

where E = Margin of error.

z* = Critical z-value.

As per given , we have

E = 5%=0.05

Confidence level = 90%

The critical value of z at 90% is 1.645  (By z-table)

Put all values in the formula , we get

n=0.25(1.645/0.05)²

n=0.25(32.9)²

n=270.6025≈271

Thus, the minimum sample size needed = 271

Hence , the correct answer is 271 .

8 0
3 years ago
n January​ 1, 2018, Waller Sales issued $ 20 comma 000 in bonds for $ 18 comma 300. These are eightminusyear bonds with a stated
spayn [35]

Answer:

$18,106.25

Explanation:

For computing the carrying value of the bonds , first we have to determine the discount amortization for 8 years which are shown below:

= (Issued amount - proceeds from the bonds) ÷ time period

= ($20,000 - $18,300) ÷ 8 years × 2 years

= $106.25

Now the carrying value would be

= Proceeds from the bonds + discount amortization for 8 years  

= $18,000 + $106.25

= $18,106.25

Since the time period is 8 which are paid in semi-annual so we double the time period

8 0
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nirvana33 [79]

Answer:

B, A

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A: 16% = 1.0F + 6%; F = 10%; B: 12% = 0.8F + 6%: F = 7.5%; thus, short B and take a long position in A.

4 0
3 years ago
Examine the scenarios to determine the protected status, unprotected status, existence, or non-existence of a trade secret.
DedPeter [7]

Answer:

Protected status

Explanation:

In simple words, the trade secret is said to be protected when it has an economic value to the founding company or the company handling it and anyone who is exposed to the information regarding that is legally bound to not to disclose it.

Thus, from the above we can conclude that the given scenario indicates protected status.

6 0
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