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AVprozaik [17]
3 years ago
11

What would be the maximum an investor should pay for the common stock of a firm that has no growth opportunities but pays a divi

dend of $1.36 per year? The required rate of return is 12.5 percent.
a. $11.24
b. $9.52
c. $10.88
d. $10.64
e. $11.47
Business
1 answer:
e-lub [12.9K]3 years ago
6 0

Answer:

$10.88

Explanation:

Calculation to determine What would be the maximum an investor should pay for the common stock of a firm that has no growth opportunities

Using this formula

Maximum payment for common stock=Dividend/Required rate of return

Let plug in the formula

Maximum payment for common stock=$1.36/.125 Maximum payment for common stock= $10.88

Therefore What would be the maximum an investor should pay for the common stock of a firm that has no growth opportunities is $10.88

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Holly owns a dance studio. To improve sales of dance classes, she is reviewing how her marketing team could update the company's
ASHA 777 [7]

Answer:

b. website layout

c. email marketing

Explanation:

The website layout is the layout i.e created for a website. It should be attractive to the owners and users. Moreover it should be easy to navigate it so that if anyone could access to the website he or she could easily access it without any hurdle.

The email marketing is a technique in which we can send one message to large audience in the same time. It helps in saving cost and time

According to the given situation, the online customers struggled with website navigate and to find out the contact information related to the business

So to modify and help address her customer feedback the website layout and the email marketing plays a vital role and the same is to be considered

6 0
3 years ago
Crane Company purchases a patent for $161,900 on January 2, 2022. Its estimated useful life is 5 years. (a) Prepare the journal
Zina [86]

Answer:

Explanation:

The journal entry is shown below:

Amortization expense - Patent A/c Dr $32,380

     To Patent A/c $32,380

(Being amortization expense for the first year is recorded)

The computation is shown below"

= Purchase cost of patent ÷ estimated useful life

= $161,900 ÷ 5 years

= $32,380

For the intangible assets, the amortization expense is considered,not the depreciation expense and the same is to be taken.

7 0
3 years ago
Buzz Lightyear has been offered an investment in which he expects to receive payments of $4,000 at the end of each of the next 1
LenaWriter [7]

Answer:

IRR= 21.86%

Explanation:

Giving the following information:

Initial investment (PV)= $10,000

Cash flows (PMT)= $4,000 per year

Number or years (n)= 4

<u>It is extremely difficult to calculate the IRR using the formula. We will use the financial calculator.</u>

Function: CMPD

n= 4

I%= SOLVE = 21.86%

PV= 10,000

PMT= -4,000

IRR= 21.86%

6 0
3 years ago
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $5 per
Arturiano [62]

Answer:

$150,000

Explanation:

The computation of value of ending inventory under absorption costing is shown below:-

Total Cost per unit = Direct Material per unit + Direct Labor per unit + Variable Overhead per unit + Fixed Overhead per unit

= $5 + $4 + $3 + ( $200,000 ÷ 25,000 units)

= $5 + $4 + $3 + $8

= $20

Ending Inventory in units = Units produced - Units sold

= 25,000 - 17,500

= 7,500

Cost of Ending Inventory = Total Cost per unit × Ending Inventory units

= $20 × 7,500

= $150,000

So, for computing the cost of ending inventory we simply multiply the total cost per unit with ending inventory units.

8 0
3 years ago
Brand equity is the: Question 3 options:
natali 33 [55]

Answer:

d) association a consumer places in a brand with an organization.

Explanation:

Brand equity referes to the commercial value of a brand that a costomer perceives from the brand name. it is the value associated with the brand and not its product or services.

8 0
3 years ago
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