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sladkih [1.3K]
3 years ago
8

A company pays a constant 6.5 dividend on stock. The dividend will maintain for the next 12 years and cease forever. The require

d return on the stock is 9.1 percent. What is the current share price?
Business
1 answer:
zalisa [80]3 years ago
6 0

Answer:

$46.31

Explanation:

Calculation to determine the current share price

Using this formula

Current share price=6.5*Present value of annuity factor(9.1%,12)

Present value of annuity=Annuity*[1-(1+interest rate)^-time period]/rate

Let plug in the formula

Current share price=6.5*[1-(1+0.091)^-12]/0.091

Current share price=6.5*[1-(1.091)^-12]/0.091

Current share price=6.5*7.124793

Current share price=$46.31

Therefore the current share price will be $46.31

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During 2019, Globe Life Corporation had following transactions affecting stockholders' equity: a. Feb. 1 Repurchased 230 shares
natali 33 [55]

Answer:

The requirement of question is prepare journal entries for each of above transaction; It is assumed that par value of each share is $1

Explanation:

Feb 1.

Common Stocks  230*1                           Dr.$230

Paid in capital in excess of par 230*(22-1)  Dr.$4,830

Cash 230*22                      Cr.$5,060

b. Jul 15

Cash 130*23    Dr.$ 2,990

Common Stocks 130*1     Cr.$130

Paid in capital  in excess of par 130*(23-1) Cr.$2,860

c.Oct 1

Cash 100*21             Dr.$2,100

Common Stocks 100*1            Cr.$100

Paid in Capital in excess of par 100*(21-1) Cr.$2,000

5 0
3 years ago
Excise taxes are collected by which levels of government? i. Local government ii. State government iii. Federal government
tankabanditka [31]
Federal Government collects excise taxes 
I think! not 100% sure 
3 0
4 years ago
Read 2 more answers
When a new variety of Envirokids whole-grain breakfast cereals is first introduced, consumers will most likely engage in ____ wh
lbvjy [14]

When a new variety of Envirokids whole-grain breakfast cereals is first introduced, consumers will most likely engage in "limited decision making" when deciding whether or not to purchase this new product.

<h3>What is limited decision making?</h3>

When buying things that need a reasonable amount of time and effort to compare models and brands before making a decision, consumers use limited decision-making.

Some features of limited decision making are-

  • When you require knowledge on an unexpected brand inside a well-known product area, perhaps. takes some time to obtain the necessary information.
  • Examples include clothing, when the brand is unknown but the product class is known.

The three categories of decisions-making are-

  • Organisational direction is determined by strategic decisions.
  • Decisions made at the tactical level affect how tasks will be completed.
  • Last but not least, operational decisions are those that staff members take on a daily basis to manage the company.

To know more about use of limited decision making while purchasing, here

brainly.com/question/14366090

#SPJ4

7 0
2 years ago
The following is a list of account titles and amounts (dollars in millions) from a recent annual report of Calvin, Inc., a leadi
solong [7]

Answer:

ASSETS

<u>NON -CURRENT ASSETS</u>

Buildings and improvements                              195

Land and improvements                                       15

Other intangibles                                              1,359

Machinery, equipment, and software                418

Tools, dies, and molds                                          71

Accumulated depreciation                               (417)

Goodwill                                                              469

Accumulated amortization (other intangibles) (819)

TOTAL NON -CURRENT ASSETS                    1,291

<u>CURRENT ASSETS</u>

Inventories 300

Prepaid expenses and other current assets   165

Allowance for doubtful accounts                     (39)

Accounts receivable                                          641

Other noncurrent assets                                   210

Cash and cash equivalents                              636

TOTAL CURRENT ASSETS                             1,613

TOTAL ASSETS                                             2,904

Explanation:

Non-current assets are assets of a long term nature ,exceeding period of 12 months.

Current assets are assets of a short term nature, not exceeding a period of 12 months.

8 0
3 years ago
QV-TV, Inc. provided the following items in its notes to the financial statements for the year-end 2014: Cost of goods sold was
Nookie1986 [14]

Answer:

The correct answer is option (d) $1.3 billion.

Explanation:

Given Data:

inventory value under FIFO costing = $2.1 billion

LIFO Reserve for year-end 2013 = $0.6 billion

LIFO Reserve for year-end 2014 = $0.8 billion

LIFO inventory is calculated using the formula;

LIFO inventory value at year-end 2014 = FIFO inventory - LIFO reserve

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                                                               = $1.3 billion

5 0
3 years ago
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