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jarptica [38.1K]
2 years ago
11

BioScience Inc. will pay a common stock dividend of $3.20 at the end of the year (D1). The required return on common stock (Ke)

is 14 percent. The firm has a constant growth rate (g) of 9 percent. Compute the current price of the stock (P0).
Business
1 answer:
kotykmax [81]2 years ago
7 0

Based on the information given the current price of the stock (P0) is $64.

<h3>Current price of stock (P0)</h3>

Using this formula

Current price of stock (P0)=D1/(Ke-g)

Where:

Dividend (D1)= $3.20

Required return on common stock (Ke)= 14 percent

Constant growth rate (g)=9 percent

Let plug in the formula

Current price of stock (P0)=$3.20/(14%-9%)

Current price of stock (P0)=$3.20/5%

Current price of stock (P0)=$64

Inconclusion  the current price of the stock (P0) is $64.

Learn more about current price of the stock (P0) here:brainly.com/question/18522036

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What to do with office space to make money? How would you arrange them?
hoa [83]

Answer:

a bigger space

Explanation:

a bigger space because u have a alot to do. you can have more people working. or if it private then a room for secretary and your office in the business

7 0
3 years ago
Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for
coldgirl [10]

Answer:

Option (A) is correct.

Explanation:

Given that,

Order costs for pepperoni = $10.00 per order

Carrying costs = 4 cents per pound per day

Lead time for each order = 3 days

Pepperoni itself costs = $3.00 per pound

Total Order = 80 pounds of pepperoni

Demand rate = 20

Total ordering cost = Total order × cost per order

                                = 80 × $10

                                = $800

Length of an order cycle:

=\frac{Order\ quantity}{Demand\ rate}

=\frac{80}{20}

= 4 days

3 0
2 years ago
A $2,000 cash dividend is planned in 2019. No dividend was paid in 2018. 1,000 shares of 5% cumulative $10 par value preferred s
Irina-Kira [14]

Answer:

C) $1000

Explanation:

First lets calculate the cumulative preferred stock dividend for 2 years

(1000 * 10 ) * 5% = 500 / year

so for 2 years = $1000 since it is cumulative and not paid in one year is added to next year.

Total dividend payable = $2000

so for common stock whatever is left over is paid thus,

Common stock share = Total - Preferred cumulative = 2000 - 1000 = $1000

Hope that helps.

4 0
3 years ago
Builtrite's upper management has been comparing their books to industry standards and came up with the following question: Why i
Vesna [10]

Answer:

Builtrite has higher than average operating expenses

Explanation:

Subtracting cost of goods sold from net sales will give you gross profit. The reason of high gross profit could be company is able to sell its products at a higher price or it is able to keep its cost of goods sold at a lower level than industry standards.

A higher-than-industry-average gross profit margin increases your chances of generating a net profit provided that you are able to keep your expenses within industry average levels.

Operating profit is the pre-tax profit or in other words it is calculated by subtracting operating expenses from the gross profit. Operating profit margin is equal to operating income divided by the total revenue. A lower operating margin despite of having higher gross profit is because the company is not able to control its operating expenses or in other words they are incurring higher operating expenses as compare to industry.

4 0
3 years ago
Kincaid Company provided consulting services of $2,500 to a customer who paid $1,300 and promised to pay the remainder next mont
Anon25 [30]

Answer:

B. Cash 1,300  Dr, Accounts Receivable 1,200 Dr, Consulting Revenue 2,500 Cr

Explanation:

                             Kincaid Company

                                  Journal Entry

Date      Description                             Debit       Credit

              Cash                                      $1,300

                     <em>Accounts Receivable                      $1,200</em>

                     Consulting Revenue                        $2,500

6 0
3 years ago
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