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pychu [463]
3 years ago
11

JCPenney Company is expected to pay a dividend in year 1 of $1.65, a dividend in year 2 of $1.97, and a dividend in year 3 of $2

.54. After year 3, dividends are expected to grow at the rate of 8% per year. An appropriate required return for the stock is 11%. The stock should be worth _______ today.
a. $33.00.
b. $40.67.
c. $71.80.
d. $60.00.
e. none of these is correct.
Business
1 answer:
arlik [135]3 years ago
7 0

Answer:

c = $71.80.

Explanation:

So, from the question above, it is given that the dividend in the first year = $1.65, the dividend in the second year = $2.54, the dividend for the third year  grows at the rate of 8% and the appropriate required return for the stock = 11%.

The first thing to do here is to determine the terminal value. The terminal value can be calculated as below as;

Terminal value = [ 2.54 × ( 1 + 8/100) ÷ (11/100 - 8/100) ]  = 91.44

The value of the stock today can be calculate as be as:

The value of the stock today = 1.65 / (1 + 11/100 )¹ + 1.97 /  (1 + 11/100)² + 2.54 / (1 + 11/100)³ + 91.44 /  (1 + 11%)³ = $71.80.

Therefore,  stock should be worth $71.80 today.

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andrew-mc [135]

Answer:

839.216

Explanation:

For we to calculate the total cost, we use the following

Total Cost = Carrying Cost + Stock out Cost

= 0+ $45 x 4 x [.2(100-80)+.2(120-80)+.1(140-80)] = 1368*

Now

Total Cost = Carrying Cost + stock out Cost

Total cost= [10 x 20]+40 x 4 x [.2990-50-20)+.1(110-50-20)]

Total cost = 200-1115.216+4

Total cost = 839.216

8 0
3 years ago
The final step in recognizing the completion of production requires a company to:
BaLLatris [955]

Answer:

A. debit Finished-Goods Inventory and credit Work-in-Process Inventory.

Explanation:

The work in progress cannot yet be debited because it cannot be sold while the finished goods represent cash.

3 0
3 years ago
Excess cash is cash that is excess to the operations of a company and is considered "negative debt" because the cash could be us
Harrizon [31]

Answer:

True

Explanation:

Excess cash is a term used in the for the residual cash flow of operation. It is calculated after adding the non cash expenses in the net income of the company and deducting all the capital expenditures. This is the cash balance which is available for the reinvestment purpose and for distribution to the stockholders. This cash can also be used to reduce the gearing of the company and there is a cost attached to it if used for payment of loan, which is the rate or return from the reinvestment of these cash flows.

6 0
3 years ago
Read 2 more answers
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Tpy6a [65]
You should prioritize your first customer since they are entitled with your full attention being the one who availed your service first. You can ask the second customer if she can wait. But if the second customer would be so persistent, you can ask permission from the first customer if she is not in a hurry and that you would entertain the second customer first.
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3 years ago
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Naya [18.7K]

The correct answer to this open question is the following.

The business decision based on the company where you work would be this. To open a new small branch of the fast-food restaurant as a concession in the municipal stadium.

The incremental cost is the future costs as a result of this business decision. This means that we have to consider extra money on a monthly basis to pay for the rent of the concession booth at the Municipal stadium.

The opportunity cost is that instead of opening our branch in the new downtown mall, we decided to move with the stadium option. Having decided to be at the mall could have allowed us to have more clients on a daily basis, especially on weekends.

The sunk cost is a cost from the past, an historical cost that really is not important in the present time to make a decision. Maybe, just a reference to a case in the past. And that's it.

Here we can refer to a cost when we opened the first location of the restaurant, but it was five years ago. Those were different situations, necessities, and conditions.

8 0
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