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Westkost [7]
2 years ago
5

The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.10 per share on its stock. The dividends are expected to grow at

a constant rate of 5 percent per year indefinitely. Investors require a return of 11 percent on the company's stock. a. What is the current stock price
Business
1 answer:
Agata [3.3K]2 years ago
5 0

Answer:

the current stock price is $19.25

Explanation:

The computation of the current stock price is shown below:

= Dividend × (1 + growth rate) ÷ (Required rate of return - growth rate)

= $1.10 × (1 + 0.05) ÷ (11% - 5%)

= $1.155 ÷ 6%

= $19.25

hence, the current stock price is $19.25

We simply applied the above formula

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During what meeting did the delegates request each state write a constitution?
Tasya [4]
The delegates requested that each state write  a constitution during the Second Continental Congress.
6 0
3 years ago
Retained earnings represents: Multiple Choice Amount of cash available for paying dividends. Total assets minus total liabilitie
kotegsom [21]

Answer:

All net income, less all dividends, since the company began operations.

Explanation:

Retained Earnings are the retained profits that the company keeps with itself, for meeting any case of emergency or for growing company and thus, meeting the growing expenses.

Each year when company earns profits and then, it distributes its profits in the form of dividends, the balance remaining after paying the dividends is added to retained earnings.

Thus, the entire balance of these kind of profits not paid anywhere else and also not utilized is called retained earnings.

4 0
3 years ago
One of the elements of the Fraud Triangle focuses on how easy or hard it is for the internal control system to prevent any fraud
olga55 [171]

Answer: Opportunity

Explanation:

1. Opportunity - Given the fact that employees are granted access to very important documents, this might provide them the opportunity to commit theft. Employees who occupy top positions have access to classified information of the company which when manipulated can result to disastrous consequences. It now be holds on the employers of labour or the internal control system, to limit access to such information so as to make it hard for such fraud to be committed.

The procedures used by auditors to provide evidence are in two phases namely; the planning phase and execution phase.

1. The procedure for the planning phase is - Designing Appropriate Procedures : The evidence in this case could be a red flag noticed in the account records. The person who tried to commit the fraud could change figures in places that may not be noticeable.

2. The procedure for the execution phase involves - Implementing Appropriate Procedures : The evidence could be seen as an error. This error most likely results in wasteful spending.

8 0
2 years ago
Why is it best to pay expenses for your business with a check, not with cash?
TEA [102]
Because you have proof of what you payed.
5 0
3 years ago
The market value of Charter Cruise Company's equity is $15 million and the market value of its debt is $5 million. If the requir
topjm [15]

Answer:

17%

Explanation:

To calculate this, we use the weighted average cost of capital (WACC) as follows:

Total capital = 15 + 5 = 20

Weight of equity = 15/20 = 0.75, or 75%

Weight of debt = 5/20 = 0.25, or 25%

WACC = (20% × 75%) + (8% × 25%) = 17%

Therefore, the company's cost of capital is 17%.

6 0
2 years ago
Read 2 more answers
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