A command economy features:

The Diamond Outlet has current earnings per share of $1.96 and an expected earnings growth rate of 2.2 percent. The required ret

hjlf

Answer:

the current market value of this stock is $15.96

Explanation:

given

current earnings = $1.96 per share

growth rate = 2.2 percent

return on the stock = 13 percent

current book value = $12.70 per share

solution

first we get here return on equity that is

return on equity = [ current earning per share × ( 1 + growth ) ] ÷ book value per share ....................1

return on equity = $\frac{1.96 + (1+0.022)}{12.70}$

return on equity =15.77 %

and

now we get here payout ration that is

growth rate = retention ration × ROE ....................2

put here value

2.2% = (1 - payout ratio ) × 15.77

payout ratio = 86.05 %

and

now we get here current dividend per share that is

current dividend per share = current earning per share × payout ratio ...........3

put here value

current dividend per share = 1.96 × 86.05 %

current dividend per share = $1.6865

and

now we get here current market value

current market value = [ current dividend per share × ( 1 + growth ) ] ÷ [ required return - growth rate] ....................1

current market value = [Text]\frac{1.6865 \times (1+0.022)}{0.13-0.022}[text]

current market value = $\frac{1.6865 \times (1+0.022)}{0.13-0.022}$

current market value = $15.96

8 0

3 years ago

The the utilitarian, individualism, moral rights, and justice views offer different approaches to moral reasoning; each takes a

Aliun [14]

Answer and explanation:

Utilitarianism, individualism, moral rights, and justice alone are not better than one another. Managers must use the four of them as tools to build ethical behavior at work but the challenge comes in knowing when to apply each one according to the situation.

Utilitarianism emphasizes common wellness and the maximization of satisfaction while individualism prevails the moral worth of individuals. Moral rights and justice can be provided both in groups and for each member of a given group.

Thus, <em>some of the moral approaches mentioned can be applied when dealing with employees separately while others collectively.</em>

8 0

3 years ago

Auto Mart, a large auto parts distributor, is attempting to acquire Rubber Meets the Road, a tire manufacturer. However, Rubber

qaws [65]

Answer:

The Rubber Meets the Road has issued shares at discount to market price to its shareholders (Right Issue)

Explanation:

These tactics are used by the company who wants to defend itself from the acquirer because they think they will damage the company values, culture, restructure business processes and change in people who work and are part of the organization. In other words they think are a family and will loose each other and the associated benefits now they are enjoying so what they do is they upper management issues the rights to its existing shareholders at discount to market value.

The investment doesnot seems attractive as the benefit are no more if the acquirer pays extra dollars to buy the 50% shares which have been increased due to right issue. So the statement hostile takeover means the defending strategy of the firm that the acquirer wants to acquire its control by buying more than 50% shares.

8 0

3 years ago

Indicate whether the situations involve economic discrimination. Sharna lives on a planet where unobtanium is mined by an interp

Softa [21]

Answer:

Yes, in the question there are is a clear example of economic discrimination.

Explanation:

The fact that Sharna does not purchase Earth prodcuts is not economic discrimination because each consumer is free to decide what to purchase.

However, Sharna is not only a consumer, but also a producer, and one that is a monopoly, and using the power of her monopolistic position to refuse to sell to Earthlings, or loan less to Earthlings, not because of legitimate economic justifications or concerns, but because she dislikes Earthling poetry, is a clear example of economic discrimination that would be struck down in an Earthling court.

3 0

3 years ago

Part B: Application of Job Order Costing Scanlon Company has a job-order costing system and applies manufacturing overhead cost

stiks02 [169]

Answer:

a) Predetermine overhead rate = 1710000/95000 = 18 per machine hour

Applied overhead = 18*75000 = 1350000

Under applied overhead = 1687500-1350000 = 337500

b) Cost of godos sold allocated amount of under applied overhead if fully allocated on cost of goods sold = 337500

Cost of goods sold allocated amount of under applied overhead if allocated on appropriate accounts = 337500*759375/1350000 = 189843.75

Difference in net income = 337500-189843.75 = 147656.25

6 0

3 years ago