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
fenix001 [56]
2 years ago
15

Using a dividend discount model, what is the value of a stock that pays an annual dividend of $5 that is not expected to grow, a

nd the discount rate is 10%? What will be the value of the stock if the dividend is expected to grow 5% per year?
Business
1 answer:
Alenkasestr [34]2 years ago
5 0

Answer:

a. <u>Value of the stock without growth rate</u>

= D1 / (r - g)

= $5 / (10% - 0)

= $5 / 10%

= $5 / 0.10

= $50

b. <u>Value of the stock with growth rate</u>

= D1 / (r - g)

= $5 / (10% - 5%)

= $5 / 5%

= $5 / 0.05

= $100

You might be interested in
The issuer of a 5% common stock dividend to common stockholders should transfer from retained earnings to paid-in capital an amo
NISA [10]

Answer: A

Fair value of the shares issued.

5 0
3 years ago
Alliance Company’s budgets production of 24,000 units in January and 28,000 units in the February. Each finished unit requires 4
anyanavicka [17]

Answer:

Budgeted material cost for January is $ 256,000

Explanation:

Computations

<u>Raw materials requirement for January</u>

Units to be produced in January                                               24,000 units

Raw material requirement for January at 4 pounds per unit     96,000 pounds

<u>Raw materials requirement for February</u>

Units to be produced in February                                               28,000 units

Raw material requirement for February at 4 pounds per unit    112,000 pounds

40  % of requirement of February to be available end January  <u>44,800 pounds</u>

<u>Purchases for January</u>

Closing Inventory+ Consumption -Opening Inventory

44,800 pounds + 96,000 pounds  - 38,400 pounds =           102,400 pounds

Cost per pound  $ 2,50 per pound  = $ 256,000

4 0
3 years ago
If a frozen pizza plant is the cost object, classify each of the following costs as direct or indirect, respectively: property i
emmainna [20.7K]

Answer:

Indirect

Direct

Iindirect

Explanation:

Direct cost is the cost that can be traced back to the cost object whereas the indirect cost cannot be traced back. Cost object is something to which the costs are assigned. in this case the cafeteria workers are directly working with the cost object:Frozen pizza plant, hence the cost is directly associated with that. Janitorial supplies and property insurance cost does not directly relate to The cost object given here so it will be classified as indirect cost.

3 0
3 years ago
The first step to creating a PPC advertising campaign on SEs is to select keywords associated with the campaign. Select one: Tru
Archy [21]

Answer:

False

Explanation:

Given that PPC is an acronym or abbreviation for Pay Per Click, and it is a form of an advertising campaign in which search engines are paid to show or display a link such as a short URL to a firm's website together with either organic search results or in another website.

Hence, the idea that the first step to creating a PPC advertising campaign on SEs is to select keywords associated with the campaign is FALSE

7 0
3 years ago
lisette’s laptop needs a unique battery, and a local computer parts company is the only place that sells it. given the demand fu
Allushta [10]

Answer:

-5000

Explanation:

3 0
3 years ago
Other questions:
  • atch China's GDP Growth Rate to the year. This data is easily found by creating a raw data longitudinal or advanced bar chart an
    8·1 answer
  • Honest Abe’s is a chain of furniture retail stores. Integral Designs is a furniture maker and a supplier to Honest Abe’s. Honest
    5·1 answer
  • Aaron is a freshman in college who has not yet decided on his major. He is thinking about majoring in operations management and
    6·1 answer
  • What age do you have to be to start donating to travel organizations?
    15·1 answer
  • Name one way establishing credit
    10·1 answer
  • Diamond’s Corporation has an investment in 5,000 shares of Sigmond Company common stock with a cost of $218,000. These shares ar
    7·1 answer
  • Abbott, Inc., issued $50,000 of bonds, paid cash dividends of $8,000, sold long-term investments for $12,000, received $5,000 of
    13·1 answer
  • The May transactions of Whispering Winds Corp. were as follows. May 4 Paid $690 due for supplies previously purchased on account
    10·1 answer
  • Kinda running back on my payments anyone got spare change -apple pay numbers below god bless you all
    11·2 answers
  • Roger is engaging in HR planning. He is trying to predict what human resources will be needed in the coming year in his organiza
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!