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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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Shamrock Shades operates in mall kiosks throughout the southwestern United States. Shamrock purchases sunglasses from bulk disco
Dmitry [639]

Answer:

Particulars                Jan                  Feb                Mar

Purchase               $160,000       $200,000       $252,000

Explanation:

For computing the required purchase from Jan to Mar we need to find out the following amounts

Particulars                Jan                  Feb                Mar                  Apr

Projected sales    $380,000     $460,000        $620,000        $660,000

COGS  at 40%      $152,000      $184,000         $248,000        $264,000

Ending inventory   $46,000      $62,000          $66,000

Beg inventory        $38,000      $46,000           $62,000

Now the required purchased for each month is

Particulars                Jan                  Feb                Mar

COGS                    $152,000        $184,000        $248,000

Add: ending inve  $46,000         $62,000         $66,000

Less: Beg inve      ($38,000)       ($46,000)       ($62,000)

Purchase               $160,000       $200,000       $252,000

Here,

COGS = Cost of goods sold

Since the desired ending inventory is 25 percent of the following month’s cost of goods sold so beginning inventory would be 25 percent in current year cost of goods sold

6 0
3 years ago
Little LampLighter Inc has a book value of $10 million in debt; its bonds are trading at $900 and there are 11,000 outstanding.
kumpel [21]

Based on the amount of debt and equity that Little LampLighter has, the weighted average rate of return would be 12.3%.

<h3>What is the weighted average rate of return?</h3>

First find the total value of debt and equity:
= 10 + 25

= $35 million

The weighted average return is:

= (10 / 35 x 8%) + (25 / 35 x 14%)

= 2.286% + 10%

= 12.3%

Find out more on weighted average rate of return at brainly.com/question/17284158.

#SPJ12

7 0
2 years ago
What percentage does a bank expect you to put down on a house
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Mike and Tom debone chicken breasts for Ted's Chicken Co. Mike is new and can only debone 30 chicken breasts per hour, while Tom
vodka [1.7K]

Answer:

Their average hourly productivity as a team for chicken breasts will be

45.

Explanation:

Here, it is given that Mike and Tom debone chicken breasts for Ted' chicken company.

Mike debones 30 chicken breasts,

Meanwhile Tom is having his own experience in this work and knows how to calculate the hourly work

So, Tom allows Mike to debone only 60 chicken breasts per hour.

Now its mentioned that both Tom and Mike had worked 40hrs per week.

So, their average hourly productivity as a team will be:

                 frac\ {{30} +{60}} {2}

                    ⇒ 45

So, their average hourly productivity as a team for chicken breasts will be 45.

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A company settles a long-term note payable plus interest by paying $68,000 cash toward the principal amount and Page 565 $5,440
Juli2301 [7.4K]

Answer:

$68,000

Explanation:

The long-term note payable is a debt that is formally established through a written agreement. An example of long-term note payable is a bank loan.

When the principal and the interests of a long-term note are paid, they represent Cash outflows from the business and are recorded in the Cashflow Statement. However, their treatments are different. Another way to put it is that they bring a reduction in the cash of the organisation.

The $68,000 principal amount paid is an outflow from the company that is recorded in the financing activity section of the Cash Flow Statement

The Interest of $5,440 is also an outflow from the business but it is reported in the operating activity section of the Cash Flow Statement. The reason for its report is that it is actually reported in the Organisation's Statement of Income as an expense for the year. It, therefore, qualifies as an operating activity expense or outflow.

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