Answer:
P0 = $33.9085 rounded off to $33.91
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 is the dividend paid recently
D0 * (1+g) is dividend expected for the next period /year
g is the growth rate
r is the required rate of return or cost of equity
First we need to calculate the required rate of return or r using the CAPM.
Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * rpM
Where,
rRF is the risk free rate
rpM is the market risk premium
r = 0.03 + 1.2 * 0.06
r = 0.102 or 10.2%
Now using the formula for P0 under the constant dividend growth model,
P0 = 2.3 * (1+0.032) / (0.102 - 0.032)
P0 = $33.9085 rounded off to $33.91
Suppose a stock had an initial price of $96 per share, paid a dividend of $2.70 per share during the year, and had an ending share price of $77.50. Requirement:a. Compute the percentage total return. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Percentage total return % b. What was the dividend yield? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Dividend yield % c. What was the capital gains yield? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Capital gains yield %
Answer: See explanation
Explanation:
Sales price = $77.50
Add: Dividend = $2.70
Less: Purchase price = $96
Dollar return = -$15.80
a. Compute the percentage total return.
= Dollar return / Purchase price
= -15.80 / 96
= -0.1646
= -16.46%
b. What was the dividend yield?
= Dividend / Purchase price
= 2.70 / 96
= 0.0281
= 2.81%
c. What was the capital gains yield?
= -16.46% - 2.81%
= -19.27%
Daily Enterprises is purchasing a $10.0 million machine. It will cost $50,000 to transport and install the machine. The machine has a depreciable life of five years and will have no salvage value. If Daily uses straight-line depreciation, what are the depreciation expenses associated with this machine?
Answer:
the depreciation expenses associated with this machine is $2,010,000
Explanation:
The computation of the depreciation expense under straight-line method is shown below:
= (Cost - salvage value) ÷ (estimated useful life)
= ($10,000,000 + $50,000 - $0) ÷ ( 5 years)
= ($10,050,000) ÷ ( 5 years)
= $2,010,000
Hence, the depreciation expenses associated with this machine is $2,010,000
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Jordan has the following assets and liabilities:_______. Two cars $10,000 House $200,000 Mortgage $100,000 Cash $1,000 Car loans $3,000 Checking account balance $2,000 Credit card balance $1,000 What is Jordan’s wealth?a. $107,000
b. $213,000
c. $109,000
d. $111,000
Answer:
c $109,000
Explanation:
A person's wealth is calculated by deducting their liabilities from their assets. The value left after the deduction is the person's wealth. In the above case, Jordan's wealth is calculated as;
= Assets [ Two cars + House + Cash balance + Checking account balance ] - Liabilities[ Mortgage - Car loans - Credit card balance ]
= [ $10,000 + $200,000 + $1,000 + $2,000 ] - [$100,000 + $3,000 + $1,000]
= $213,000 - $104,000
= $109,000
Therefore, Jordan's wealth is $109,000
when did among us come out?
2017
2018
2016
2015
Answer:
2018
Explanation:
smarts i have been playing it science the begining
Answer:
2018!?
Explanation:
what's the benefits of any Financial investments company ?
Answer:
economies of scale
Explanation:
When you buy shares you have to pay dealing costs and admin fees, which can eat away at the value of your investment. In an investment company, all the investors pool their money and split the admin costs. You can end up paying much less.
Estelle has 30 years of experience in your field and has answered your questions giving you advice and help you make contacts she is your a mentor b notary C referral D coach
Answer:
mentor
Explanation:
A mentor is an experienced person or friend who offers guidance to a less experienced in their field of expertise. The mentor instills practical skills and helps establish their mentee's career. A mentor's work involves building confidence, modeling positive behavior, and connecting their mentee to useful contacts. A mentor has to be dependable and show commitment to the needs of their mentee.
One year ago, you purchased 350 shares of Titan Wood Products for $63.17 per share. The stock has paid dividends of $.71 per share over the past year and is currently priced at $68.22. What is your total dollar return on your investment?a. $2016.00b. $1891.75c. $1767.50d. $2083.20e. $1008.00
Answer:
gfshjddjssx jvskjkjbggdaz ffddcb
An important similarity between a monopolistically competitive firm and a purely competitive firm is that:_________-a. realize an economic profit in the long run.b. achieve allocative efficiency.c. face demand curves that are less than perfectly elastic.d. achieve productive efficiency.
Answer:
a. realize an economic profit in the long run.
Explanation:
A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. Thus, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes. Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.
Hence, one of the ways in which some monopolistic competitors try to become more like monopolists is through the use of designer labels.
This ultimately implies that, when there are barriers to entry it may result in monopolistic competition among the sellers of goods having no close substitutes. These barriers consist of economies of scale, network externalities, copyright law, trademark, patent, governmental policies etc.
In a purely competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.
Hence, a purely competitive market is characterized by the following features;
1. Perfect information.
2. No barriers, it is typically free.
3. Equilibrium price and quantity.
4. Many buyers and sellers.
5. Homogeneous products.
An important similarity between a monopolistically competitive firm and a purely competitive firm is that realize an economic profit in the long run and these profits tends toward zero as both firms continue in the market.
A company reported the following information for its most recent year of operation: purchases, $114,000; beginning inventory, $27,000; and cost of goods sold, $124,000. How much was the company's ending inventory?
Answer:
ending finished inventory= $17,000
Explanation:
Giving the following information:
purchases, $114,000
beginning inventory, $27,000
cost of goods sold $124,000.
To calculate the ending inventory, we need to use the following formula:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
124,000 = 27,000 + 114,000 - ending finished inventory
ending finished inventory= 141,000 - 124,000
ending finished inventory= $17,000
A double bay car wash with an exponential arrival rate and service time has cars arriving an average of 5 minutes apart, and an average service time of 4 minutes. The utilization factor of the system is __________
Answer:
0.8
Explanation:
The Utilization factor p ;
p = mean service rate (λ) / mean arrival rate (μ)
The mean arrival rate : 5 minutes apart
Mean service rate = 4 minutes
Hence, mean arrival rate λ per hour = 60 / 5 = 12 persons per hour
Mean service rate μ per hour = 60 / 4 = 15
Utilization factor p = (mean arrival rate / mean service rate)
p = 12 / 15
p = 0.8
A college education fund is to be accumulated by twenty level semi-annual deposits, the first due on Jan. 1, 2011. The fund is to provide sixteen quarterly withdrawals of $1000 each, the first due on Oct 1, 2020. The nominal annual rate of interest is 10% convertible semi-annually. What is the amount of each deposit?
Answer:
$395.74
Explanation:
the college fund requires 20 equal semiannual payments starting January 1, 2011 and the last one should be made on July 1, 2020.
first we must determine the effective rate of the fund:
effective rate = (1 + 10%/2)² - 1 = 10.25%
now we must determine the quarterly rate:
quarterly rate = (1 + r)¹/⁴ - 1 = 2.47%
the present value of the annuity:
PV = distribution x annuity factor
distribution = $1,000PV annuity factor, 2.47%, 16 periods = 13.08553PV = $1,000 x 13.08553 = $13,085.53
that means that by July 1, 2020, you need to have $13,085.53 in your college fund
FV of an annuity = contribution x annuity factor
FV = $13,085.53FV annuity factor, 5%, 20 periods = 33.066contribution = FV / annuity factor = $13,085.53 / 33.066 = $395.74
Question 16 of 20
Frank just met with his marketing team to create his billboard sign. So far, he
knows the billboard will have a catchy slogan, a brief description about the
company and what makes them different, and information directing
customers to visit his website. What element of an effective advertisement is
Frank's billboard missing?
A. Unique selling proposition
B. Call to action
C. Appropriate information
O D. Exciting graphics and color
Answer:
b. call to action
Explanation:
An element of an effective advertisement is Frank's billboard missing is Call to action. Thus the correct option is B.
What is advertisment?An advertisement is referred tool of promotion to create awareness of any product among customers and persuade them to make a purchase which helps in the sales of the product.
In this paragraph, it is described that Billboards have a catchy slogan that gets successful gets the attention of the customer, and influences them to make a visit to their website.
The element of effective advertising which the billboard is missing is a call to action that encourages customers to take action of buying. Here Billboards is unable to tell a story to engage customers so that they will not turn their actions of buying.
Therefore, option B is appropriate.
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You use ________________ to communicate a risk and the resulting impact.A. risk management plansB. CBAsC. risk statementsD. POAMs
Answer:A
Explanation:
PLS HELP ASAP
Owners equity includes (______), which is the amount of profits that your business has been able to save over the past few years.
Wexim Toys sold merchandise to a customer on credit, terms 2/10, n/30 for $11,700. Three days later, the customer returned $2,300 of the merchandise. When recording the return transaction, Wexim Toys would record:__________
a) $2,300 in the Accounts Payable Cr. column and $2,300 in the Inventory Dr. column of the purchases journal. b) Debit Sales Returns and Allowances $2,300 and credit Accounts Receivable $2,300 in the general journal. c) $2,300 in the Cash Dr. column and $2,300 in the Inventory Cr. column in the cash receipts journal. d) Debit Cash $2,300 and credit Inventory $2,300 in the general journal. e) $2,300 in the Accounts Payable Dr. column and $2,300 in the Cash Cr. column of the cash payments journal.
Answer:
b) Debit Sales Returns and Allowances $2,300 and credit Accounts Receivable $2,300 in the general journal.
Explanation:
When goods were sold on account, Accounts receivables is debited, and Sales is credited. When goods are returned, Sales Return & Allowances is debited, and Accounts receivables is credited.
Thus, the entry will include Debit in Sales Returns and Allowances $2,300 and Credit in Accounts Receivable $2,300
when weighing your employment options consider
Answer:
When weighing your employment options, these are very important to consider:
- Employee Benefits
- Pay period
- Taxes taxable income.
Thus, all of these are very important to consider before accepting the job offer.
Explanation:
100 PIONTS PLZ Answer
Discuss how the marketing mix affects your daily life. How might you use what you know about marketing in your career?
Answer:
With the help of marketing, people become more informed about different opportunities and novelties. It helps us to figure out what and where we can buy something. Also, with marketing people gain the opportunity to choose from a huge variety of products. Almost everyone can decide what exactly he/she want to buy. Marketing communications can have a noticeable impact for people and Marketing affects all aspects of our life and has a great impact on consumer behavior.
Explanation:
Teacher gave me 100 for answer
Critically examine the maximax criteria for decision making under uncertainty
Explanation:
A decision under uncertainty is when there are many unknowns and no possibility of knowing what could occur in the future to alter the outcome of a decision.
If coal mining produces a negative externality because it leads to environmental damage, then, at the market equilibrium, the:________. a. price of coal will be higher than the socially optimal price b. quantity of coal produced will be less than the socially optimal quantity. c. quantity of coal produced will be greater than the socially optimal quantity d. supply curve will lie to the left of the regulated supply curve.
Answer: c. quantity of coal produced will be greater than the socially optimal quantity
Explanation:
The Socially Optimal quantity is the level of production that takes into account the negative externality being produced by coal and weighs it against the marginal benefit it brings.
If coal produces the negative externality of polluting the environment here then the socially optimal quantity of coal will be less than the market equilibrium because the marker equilibrium would not have taken into account the negative externality and will lead to more coal being produced than should be.
If Farmer Jane's opportunity cost of producing corn is lower than Farmer John's, she has a(n) ___________ in producing corn.
a. increasing advantage
b. comparative advantage
c. absolute advnatage
Answer:
b. comparative advantage
Explanation:
Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.
Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.
For example, if you decide to invest resources such as money in a food business (restaurant), your opportunity cost would be the profits you could have earned if you had invest the same amount of resources in a salon business or any other business as the case may be.
In this scenario, Farmer Jane's opportunity cost of producing corn is lower than Farmer John's, therefore, she has a comparative advantage in producing corn.
Comparative advantage in economics is the ability of an individual or country to produce a specific good or service at a lower opportunity cost better than another individual or country.
Hence, the comparative advantage gives an individual or country a stronger sales margin than their competitors as they are able to sell their specific products or render their peculiar services at a lower opportunity cost.
Williamson, Inc. has a debt-equity ration of 2.5. The firm’s weighted average cost of capital is 10% and its pre-tax cost of debt is 6%. Williamson faces a corporate tax rate of 35%. 1. What is Williamson’s cost of equity capital? 2. What is Williamson’s unlevered cost of equity capital? 3. What would Williamson’s WACC be if the firm’s debt-equity ratio were 0.75? What is it were 1.5?
Cost of Equity Capital = 25.25%, Cost of Unlevered Equity = 13.33%, WACC = 11.33%, 10.26%.
Given Information
The Debt Equity Ratio is 2.5
The Weight of debt is 2.5/3.5
The Weight of Equity is 1/3.5.
1. Calculation of Williamson’s cost of equity capital
WACC = (Weight of Equity*Cost of Equity) + (Weight of Debt*Cost of Debt*(1-Tax Rate))
10% = (1/3.5 * Cost of Equity Capital)+ (2.5/3.5 *6% * (1-35%))
(10% - (2.5/3.5*6%*(1-35%))= (1/3.5 * Cost of Equity Capital)
(10% - (2.5/3.5*6%*(1-35%)) *3.5 = Cost of Equity Capital
(0.10 - 0.02785714285)*2.5 = Cost of Equity Capital
0.25250000002 = Cost of Equity Capital
Cost of Equity Capital = 25.25%
2. Calculation of Williamson’s Cost of Levered Equity Capital
Cost of Levered Equity Capital = (Cost of Unlevered Equity Capital + Debt(1-Tax Rate) /Equity) * (Cost of Unlevered Equity Capital-Cost of Debt)
25.25% = Cost of Unlevered Equity Capital + 2.5*(1-35%)*(Cost of Unlevered Equity Capital - 6%)
Cost of Unlevered equity * (1+2.5*0.65) = (25.25%+2.5*0.65*6%)
Cost of Unlevered Equity = (25.25%+2.5*0.65*6%) / (1+2.5*0.65)
Cost of Unlevered Equity = 0.35 / 2.625
Cost of Unlevered Equity = 0.13333333333
Cost of Unlevered Equity = 13.3333%
3. Calculation of Williamson’s WACC
a. At debt Equity ratio of 0.75:
Cost of Levered Equity Capital = Cost of Unlevered Equity Capital+Debt*(1-Tax Rate)/Equity*(Cost of Unlevered Equity Capital-Cost of Debt)
Cost of Levered Equity Capital = 13.3333% + (13.3333%-6%)*0.75*(1-35%)
Cost of Levered Equity Capital =16.9083%
WACC = Weight of Equity*Cost of Equity+Weight of Debt*Cost of Debt*(1-Tax Rate)
WACC = 1/(0.75+1)*16.9083%+0.75/(1+0.75)*6%*(1-35%)
WACC = 11.33%
b. At debt Equity ratio of 1.50:
Cost of Levered Equity Capital =Cost of Unlevered Equity Capital+Debt*(1-Tax Rate)/Equity*(Cost of Unlevered Equity Capital - Cost of Debt)
Cost of Levered Equity = 13.3333% + (13.3333%-6%)*1.50*(1-35%)
Cost of Levered Equity = 18.5333%
WACC = Weight of Equity*Cost of Equity+Weight of Debt*Cost of Debt*(1-Tax Rate)
WACC = 1/(1+1.30)*18.5333%+1.30/(1+1.30)*6%*(1-35%)
WACC = 10.26%
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A semiannual TIPS was issued in December 2017 with a face value of $1,000 and a coupon rate of 1.2%. What coupon payment it must have paid in December 2018 if the CPI was 247.91 in December 2017 and 251.23 in June 2018?
A. 6.08 B. 6.55 C. $6.97 D. $12.16
Answer: $6.08
Explanation:
To calculate the coupon payment it must have paid in December 2018 if the CPI was 247.91 in December 2017 and 251.23 in June 2018 will be:
Face value = $1000
Coupon rate = 1.2%
= Face value × Coupon rate / 2 × CPI June 2017 / CPI December 2018
= (1000 × 1.2%)/{(2 × 251.3)/247.91}
= 12/(502.6/247.91)
= 12/2.027
= $6.08
An important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is:______
a. target income analysis
b. cost - volume profit analysis
c. least -square regression of costs
d, varaince analysis
e. process costing
Answer:
b. cost - volume profit analysis
Explanation:
Cost - volume profit analysis (CVP) is a tool the is used for mix of products sold, unit variable cost, total fixed costs, break-even point, sales volume, selling price.
CVP is a way that business gauge the different levels of cost and production volume on profit.
CVP is also called break even analysis which determines at which production level a business makes profit.
This analysis assumes that price, variable cost and fixed cost are constant.
The analysis allows companies get an accurate volume of units of products that will begin to bring in profits (break even)
Which scenario might produce a new equilibrium interest rate of 5% and a new equilibrium quantity of loanable funds of $150 billion
Answer:
Increase in capital inflows from other countries
Explanation:
An increase in capital inflows can be known to produce a boom in an economy. It leads to an appreciation of nominal exchange rate and also the real exchange rate. It is the inflow of capital from one nation to another nation. It takes place through the aid of the government, private organizations and international organizations or probably agencies.
Increase in capital inflows from other countries can bring about an equilibrium interest rate of 5% and a new equilibrium quantity of loanable funds of $150 billion.
Bramble Corp. reported the following information for 2016: October November December Budgeted sales $1250000 $1150000 $1450000 All sales are on credit. Customer amounts on account are collected 50% in the month of sale and 50% in the following month. How much cash will Bramble receive in November?a. $575000.b. $1200000.c. $1300000.d. $1150000.
Answer:
b. $1200000
Explanation:
Calculation for How much cash will Bramble receive in November
Using this formula
Cash receive in November = October Budgeted sales + Budgeted sales of November
Let plug in the formula
Cash receive in November= ($1,250,000 × 50%) + $1,150,000 × 50%)
Cash receive in November= $625,000 + $575,000
Cash receive in November= $1,200,000
Therefore the amount that Bramble receive in November will be $1,200,000
in determining the appropriate discount rate for an individual project, the financial manager will be most influenced by the
Answer:
Coefficient of variation
Explanation:
The coefficient variation is determined by dividing the standard deviation from the expected return. It represents the value of the risk that contains to earn one unit of return. The lesser the coefficient of variation the better it is for making the decisions by the finance manager
Therefore according to the given options, the coefficient of variation should be chosen
Ticker IBS is traded on the Pacific, Gulf and Atlantic stock Exchanges. The sequence of bids in the consolidated record is:
Time Exchange Bid
10:00:01 Atlantic 23.33
10:00:02 Pacific 23.32
10:00:03 Gulf 23.34
10:00:04 Pacific 23.40
10:00:05 Gulf 23.45
10:00:06 Pacific 23.44
10:00:07 Atlantic 23.43
10:00:08 Gulf 23.40
The NBB at 10:00:07 is:_______
a. 23.32
b. 23.43
c. 23.45
d. 23.44
Answer:
c. 23.45
Explanation:
National best bid (NBB) is the highest bid price across all the nation at a given point of time. In this question, 23.45 is the highest bid price from Gulf before 10:00:07
Tinker's cost of goods sold in the year of sale (2019) was $750,000 and 2018 cost of goods sold was $770,000. The inventory at the end of 2019 was $188,000 and at the end of 2018 the inventory was $208,000. Tinker's average number of days to sell its inventory during 2019 is closest to: (Use 365 days a year.)
Answer:
96.3 days
Explanation:
Inventory turnover is calculated as;
= ( Average inventory / cost of goods sold ) × 365
Where,
Average inventory = (Beginning inventory + Ending inventory) / 2
Average inventory = ($208,000 + $188,000) / 2
Average inventory = $198,000
Therefore,
Inventory turnover = ($198,000 / $750,000) × 365
Inventory turnover = 96.3 days
The average number of days for Tinker to sell it's inventory during 2019 is closest to 96.3 days
Accounting systems that use standards for product costs are called budgeted cost systems. True False
Answer:
False.
Explanation:
Accounting systems that use standards for product costs are standard cost systems.
In Financial accounting, various business firms or companies use the standard cost systems to determine the variances or differences between the actual (real) cost of goods produced and the estimated cost for the goods that were produced by the company.
Hence, standard cost systems are used by business firms or companies as a strategic tool or technique for the management and control of costs, budget planning, and analyzing cost management performance at a specific period of time.
Jerry Seinfeld derives utility from only two goods: Puffy shirts (X) and cereal (Y). His utility function is: U = XY'. The price of X is $10, the price of Y is $20, and Jerry has an income of $500. Suppose the price of Puffy Shirts increased to $20. The compensated bundle is (2.6794, 24.1149). How much is the total effect, on X, of the price change?
The total effect of change in the price of goods X is that the consumption of goods X is decreased from 2.5 by find out the new utility line.
What is Utility?Utility is the very important term that is used in the economics. It refers to the want satisfying power of any commodity, that satisfy the wants of each and every individual.
According to the given information,
[tex]U = XY^9[/tex]
Old Budget Line:
[tex]500 = 10X +20Y[/tex]
We know that,
[tex]\frac{MUx}{Px} = \frac{MUy}{Py}[/tex]
Now, find the value of [tex]MU_x[/tex] and [tex]MU_y[/tex],
[tex]MU_x = \dfrac{\triangle U}{\triangle x}\\\\MU_x = Y^9[/tex]
[tex]MU_y = \dfrac{\triangle U}{\triangle y}\\\\MU_y = 9 \times XY^8\\\\MU_y = \dfrac{Y^9}{10} \times \dfrac{9 \times XY^8}{20} \\\\Y = \dfrac{9X}{2}\\[/tex]
Now, put the value of Y in the above budget line, we have,
[tex]\$500 = 10X+20Y\\\\\$500 = 10X + 20(\frac{9X}{2} )[/tex]
Then, the value of X would be,
[tex]X = 5[/tex]
Now, put the value of X in Y,
[tex]Y = \dfrac{9X}{2}\\\\Y =\dfrac{9\times 5}{2}\\\\Y = 22.5[/tex]
Then, the new budget line would be:
[tex]500 = 20X +20Y[/tex]
We know that,
[tex]\frac{MUx}{Px} = \frac{MUy}{Py}[/tex]
No, put the value of [tex]Y = 9X[/tex] in the new budget line, we get
[tex]500 = 20X +20(9X)[/tex]
Then, the value of X is:
[tex]X = 2.5\\[/tex]
Then the value of Y is:
[tex]Y = 9X\\Y =9\times 2.5\\Y= 22.5[/tex]
Therefore, the effect of the change in the price of X is that the consumption of X had fallen from 5 to 2.5. Then the effect of price change on the consumption of good X is -2.5.
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