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Katarina [22]
3 years ago
12

The main reason for considering nonconstant growth in dividends is to allow for _____ growth rates over _____.

Business
1 answer:
JulsSmile [24]3 years ago
7 0

Based on the economic and financial analysis, the main reason for considering <u>nonconstant growth</u> in dividends is to allow for "<u>Supernormal</u>" growth rates over "<u>some finite length of time</u>."

This is because, in nonconstant growth, the growth rate cannot surpass the mandatory return indefinitely.

However, there is the probability that it could do so for some number of years.

Also, it should be noted that in this situation, the value of the stock equates to the present value of all the future dividends.

Hence, in this case, it is concluded that the correct answer is <u>supernormal</u> and <u>some finite length of time</u>.

Learn more here: brainly.com/question/13223703

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Holton Company makes three products in a single facility. Data concerning these products follow:
evablogger [386]

Answer:

86,700 minutes

Explanation:

a.  Demand on the mixing machine:

Minutes required to produce 3000 units of A (3000 x 26.9) 80700  

Minutes required to produce 1000 units of B (1000 x 2) 2000  

Minutes required to produce 2000 units of C (2000 x 2) 4000  

Total minutes   =    86,700 minutes

Therefore, in order to satisfy the demand for all of the products they would need 86,700 minutes of mixing machine time,

but they only have 14,000 minutes available for each month.

This means that they cannot satisfy the demand with the number of minutes that they have available.

b.Optimal production plan:

                         Product A Product B Product C  

Selling price per unit           $ 137.10     $ 74.80 $ 167.60  

Direct materials     $ 59.70       $ 41.70  $ 100.70  

Direct labor      $ 43.00       $ 13.30  $ 29.50

Variable manufacturing overhead $ 8.20       $ 4.30 $ 13.80

Variable selling cost per unit  $ 15.20       $ 3.10  $ 8.50

Total variable cost per unit        $ 126.10    $ 62.40 $ 152.50

Contribution margin per unit  $ 11.00  $ 12.40  $ 15.10

Mixing minutes per unit          26.90 2.00  2.00

Contribution margin per minute  $0.41 $6.20  $7.55

Rank in terms of profitability          3  2          1

Optimal production          223  1,000  2,000

 

c. The company should be willing to pay $0.41 for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity for Product A.  

For Product B the company should be willing to pay $6.20, and $7.55 for Product C.

8 0
3 years ago
The NASDAQ is a floor-based exchange.<br><br><br> t or f
Olegator [25]
False. NASDAQ has no physical trading floor because all of the stocks are pretty much made electronically.
5 0
3 years ago
What is the future value of 25 periodic payments of $5,440 each made at the beginning of each period and compounded at 8%? (Roun
artcher [175]

Answer:

Explanation:

We would plug the following values in a financial calculator in order to compute the future value,

N = 25

I/Y = = r = 8

PMT = 5440

PV = 0

Fv = ??

FV =  PMT x (1 + r )(  \frac{(1+r)^{N} -1}{r} )

https://www.calculator.net/finance-calculator.html?ctype=endamount&ctargetamountv=1000000&cyearsv=25&cstartingprinciplev=0&cinterestratev=8&ccontributeamountv=5440&ciadditionat1=beginning&printit=0&x=0&y=0

^ Using the financial calculator, FV = $429,512

4 0
3 years ago
A contingency reserve is money assigned to the project and allocated for identified risks for which contingent responses are dev
Rudik [331]

Answer:

The correct answer is letter "A": True.

Explanation:

Contingency reserves are funds that companies save to face economic hardships. In some cases, those negative situations can be expected while in some other cases they cannot -such as acts of God. Contingency plans come along with the contingency reserve to have an idea of what the company is going to do with the funds.

3 0
3 years ago
A company with a December 31 fiscal year end sold and delivered $5,000 worth of inventory on December 15, 2016 with payments of
Zepler [3.9K]

Answer:

$5,000

Explanation:

Under the accrual accounting method, revenue is recognized and recorded in the books once the recognition criteria is met i.e once the goods or service has been delivered.

Under this system as well expenses are recorded once incurred.

As such, the time of cash payment does not affect the recognition of revenue. When revenue is earned and cash is yet to be paid, the entries required are debit accounts receivable and credit revenue.

On payment of cash, the entries are posted between cash and accounts receivables.

8 0
3 years ago
Read 2 more answers
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