Since stocks can be traded online, which purpose is best served by markets?

Suppose Stark Ltd. just issued a dividend of $2.33 per share on its common stock. The company paid dividends of $2.00, $2.08, $2

klasskru [66]

Answer:

arithmetic average growth rate = (4% + 3.37% + 5.12% + 3.1%) / 4 = 3.9%

we need to find the required rate or return (RRR) in the following formula:

stock price = expected dividend / (RRR - growth rate)

expected dividend = $2.33 x 1.039 = $2.42
stock price = $55
growth rate = 0.039

55 = 2.42 / (RRR - 0.039)

RRR - 0.039 = 2.42 / 55 = 0.044

RRR = 0.083 = 8.3%

geometric average growth rate = [(1.04 x 1.0337 x 1.0512 x 1.031)¹/⁴] - 1 = 3.89%

again we need to find the required rate or return (RRR) in the following formula:

stock price = expected dividend / (RRR - growth rate)

expected dividend = $2.33 x 1.0389 = $2.42
stock price = $55
growth rate = 0.0389

55 = 2.42 / (RRR - 0.0389)

RRR - 0.0389 = 2.42 / 55 = 0.044

RRR = 0.0829 = 8.29%

5 0

3 years ago

As a result of a thorough physical inventory, Coronado Company determined that it had inventory worth $321000 at December 31, 20

Helga [31]

Answer:

The correct cost of inventory that Coronado should report is $367300

Explanation:

The goods sent on consignment still belong to the consignor until they are sold off by the consignee. So, the consignor should add the unsold consignment goods in its inventory. Thus we will add the cost of goods sent on consignment to the value of inventory.

Value of inventory = 321000 + 46300 = $367300

The goods purchased by Coronado on 27 December with FOB destination should not be added to the cost of inventory as with FOB destination terms, the goods do not belong to the buyer until they are delivered to their destination by the seller.

Thus, the correct cost of inventory that Coronado should report is $367300

5 0

3 years ago

When the government imposes a binding price ceiling on a competitive market, a surplus of the good arises, and sellers must rati

saveliy_v [14]

Answer:

False

Explanation:

The competitive market works completely on the force of demand and supply. In this market there is no other restrictions or perks from any third party.

With this the prices of any commodity depends upon the free flow of market.

When the government imposes any restriction on price ceiling, in the competitive market then the shortage of goods arise, as because no individual supplier generally, gets ready to supply the goods at such binding price, which generally, leads to inflation, which is not practical as government has binding price ceiling.

Thus, the statement is false.

6 0

3 years ago

Minott Jewelers, Ltd., purchased store fixtures, display cases, and a amaximum security commercial safe for a lump sum price of

valentina_108 [34]

Answer:

the correct answer is $3,500.

Explanation:

According to the scenario, the given data are as follows:

Total purchase = $14,000

Appraised Store fixtures = $6,000

Appraised display cases = $9,000

Appraised Commercial safe = $5,000

So, we can calculate the cost that should be recorded for commercial safe by using following formula:

Cost of commercial safe = Total purchase cost × Percentage allocate for safe

Where, Percentage allocate for safe = Appraised Commercial safe value ÷ Total appraised value

= $5,000 ÷ ( $6,000 + $9,000 + $5,000)

= $5,000 ÷ $20,000

= 25%

So, by putting the value, we get

Cost of commercial safe = $14,000 ÷ 25%

= $3,500.

Hence, the cost that should be recorded for commercial safe is $3,500.

7 0

3 years ago

According to Porter, the generic competitive strategy that reflects the ability of the corporation or its business unit to desig

Leokris [45]

Answer:

<em>The correct answer is:</em> cost leadership

Explanation:

According to Porter, every company has a strategy, whether planned or unplanned, being directly influenced by the environment in which it operates and by the industries and competitive sector. For him, companies should use the generic strategies mentioned by him so that they can survive the five competitive forces of the industry. Porter's generic strategies are: cost leadership, differentiation and focus.

The most appropriate generic strategy for the above question is cost leadership, whose central objective is to achieve total leadership in a given sector, using appropriate policies and procedures for that purpose.

The objective is achieved when a company develops a quality structure that brings together efficient equipment, qualification of personnel and control of expenses in order to maintain a low cost that generates greater returns for the company than those of its competitors.

7 0

3 years ago