A firm expects to pay dividends at the end of each of the next four years of $2.00, $1.50, $2.50, and $3.50. If growth is then expected to level off at 8 percent, and if you require a 14 percent rate of return, how much should you be willing to pay for this stock

Answers

Answer 1

Answer:

P0 = $43.96935449 rounded off to $43.97

Explanation:

Using the 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 to calculate the price of the stock today is,

P0 = D1 / (1+r)  +  D2 / (1+r)^2  +  ...  +  Dn / (1+r)^n  +  [(Dn * (1+g) / (r - g)) / (1+r)^n]

Where,

g is the constant growth rater is the required rate of return

P0 = 2 / (1+0.14)  +  1.5 / (1+0.14)^2  +  2.5 / (1+0.14)^3  +  3.5 / (1+0.14)^4  +  

[(3.5 * (1+0.08)  /  (0.14 - 0.08)) / (1+0.14)^4]

P0 = $43.96935449 rounded off to $43.97


Related Questions

Mustang Corporation reports the following for the month of April:
Finished goods inventory, April 1 $ 31,300
Finished goods inventory, April 30 25,500
Total cost of goods manufactured 1 18,700
The cost of goods sold for April is:_______.
a. $61,900.
b. $124,500.
c. $112,900.
d. $173,700.
e. $150,000.

Answers

Answer:

COGS= $124,500

Explanation:

Giving the following information:

Finished goods inventory, April 1 $ 31,300

Finished goods inventory, April 30 25,500

Total cost of goods manufactured 118,700

To calculate the cost of goods sold, we need to use the following formula:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 31,300 + 1$118,700 - 25,500

COGS= $124,500

You have $425 today which is enough to buy 17 shirts. If the price of shirts are expected to increase by 2% over the next year, what (precise) nominal rate would you have to earn to be able to buy 20 shirts next year

Answers

Answer:

The precise nominal rate you have to earn to be able to buy 20 shirts next year is $510.

Explanation:

a) Data and Calculations:

Earnings today = $425

Number of shirts bought = 17

Therefore, the cost of each shirt = $425/17 = $25

If the price of shirts increases by 2%, the new cost will be $25.50 ($25 * 1.02)

This implies that to be able to buy 20 shirts next year, you will earn $510 ($25.50 * 20).

b) In this case, earnings are influenced by the number and price of shirts needed next year.

ix company issued 16,000 shares of $10 par value common stock at a market price of $21. as a result of this accounting event, the amount of stockholders equity would

Answers

Answer:

increase by $336,000.

Explanation:

Options are "1. increase by $176,000.  2. increase by $336,000.  3. increase by $160,000.  4. be unaffected."

Common stock will increase by $160,000, the par value, and paid-in capital in excess of par value will increase by $176,000, for a total increase in stockholders' equity of $336,000.

Southeast Airline had retained earnings of $1.5 million, sales of $5 million and net income of $0.5 million this year. It also paid dividends of $0.2 million this year. If the sales is projected to increase by 20% next year, what is the projected retained earnings for next year?

Answers

Answer:

$1.86 million

Explanation:

Given the above data, we can calculate the retained earning for next year to be;

Retained earning this year end = $1.5 million retained earning at the beginning + $0.5 million net income - $0.2 million dividends

= $1.8 million

A bank has agreed to lend you $127,800 for a home loan. The loan will be fully amortized over 57 years at 12.98%, with .13 points. The loan payments will be monthly. The closing cost is estimated to be $2,168.
Calculate the APR.
A bank has agreed to lend you $524,000 for a home loan. The loan will be fully amortized over 40 years at 5.33%, with .58 points. The loan payments will be monthly. The closing cost is estimated to be $2,579 and you plan to refinance the mortgage in 6 years.
Calculate the prepaid interest.

Answers

Answer:

ARP = 13.2184 %

Prepaid interest = $3,057.66

Explanation:

The ARP stands for annual percentage rate. It is defined as the amount of interest that one has to pay annually for the total mortgage loan he or she takes. In the question, the ARP will be  13.2184 % for a loan amount of $127,000 at the rate of 12.98% that will be amortized in 57 years with 0.13 points.

The prepaid interest is the interest amount the borrower pays for the loan he takes before the first scheduled of the debt repayment. In the question, the prepaid interest amount is $3,057.66 for the loan amount $524,000 to be amortized in 40 years with 0.58 points and at 5.33%.  

The credit facility alludes to a type of financial instrument in which an amount of money is granted to another party in exchange for the valuation or principal quantity being repaid in the future.  

In so many circumstances, the creditor will add interest to the original amount, which the borrower will be liable to repay in addition to the principal amount.

The answers are:

The percentage of ARP is 13.2184 %

The amount of Prepaid interest is $3,057.66

The annual percentage rate is the amount of interest that a person must pay each year on the total mortgage loan that he or she takes out. The ARP will be 13.2184 percent for a loan amount of $127,000 at a rate of 12.98 percent, amortized in 57 years with 0.13 charges in the case in question.

The prepayment interest rate is the number of interest costs by the debtor for the loan he takes out before the first specified repayment date. The prepaid interest amount in the question is $3,057.66 for a loan of $524,000 to be amortized over 40 years at 0.58 points and 5.33 percent.

To know more about the calculation of the interest and the percent rate, refer to the link below:

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The wipeout ski company manufactures skis for beginners. Fixed costs are $30

Answers

OK what’s the point of the problem

Answer:

good

i live in az

Explanation:

Under the Real Estate Law of California, an agent is required to give a copy of the listing agreement to his principal at:__________.
a. the close of escrow.
b. the beginning of escrow.
c. once the buyer has signed it.
d. at the time of signing.

Answers

Answer:

d. at the time of signing.

Explanation:

Under Section 10142 of real estate law agent has to submit a copy of the listing agreement to the principal.

Section 10142 of the real estate law of California is attached with this is attached please find it.

Johnson corporation began the year with inventory of 14,000 units of its only product. units cost $8 each. The company uses a Perpetual inventory system and the fifo cost method. The following transactions occurred during the year: a. purchase 70,000 additional units at a cost of $10 per unit. Terms of the purchases were 2 /10 n/ 30, and 100% of the purchases were paid within the 10-day discount. The company uses the gross method to record purchase discounts. The merchandise was purchased f. O. B. Shipping point and Freight charges of $0.40 per unit were paid by Johnson. b. 1400 units purchased during the year will return to suppliers for credit. Johnson was also given credit for the freight charges of $0.40 per unit it had paid on the original purchase. The units were defective and were returned two days after they were received. c. sales for the year totaled 65,000 units at $18 per unit. d. on December 28th Johnson purchased 5400 additional units at $10 each. The goods were shipped f. O. B. Destination and arrived at Johnson's Warehouse on January 4th of the following year e. 17600 units were on hand at the end of the year. required: 1. for financial reporting purposes, the company uses lifo (amounts based on the Periodic inventory system). Record the year-end adjusting entry for the lifo reserve, assuming the balance in the lifo Reserve at the beginning of the year it's $15,800 2. determine the amount the company would report as income before taxes for the year under lifo. Operating expenses other than those indicated in the above transactions amounted to $158,000​

Answers

What do you want me to do here? I don’t know this sorry!

A stock had returns of 18.58%, -5.58%, and 20.81% for the past three years. What is the variance of returns?

Answers

Answer:

Variance = 0.02141851

Explanation:

We first calculate the mean for the stocks

Mean = (0.1858 - 0.0558 + 0.2081) / 3

Mean = 0.3381 / 3

Mean = 0.1127

Variance = [(0.1858 - 0.1127)^2 + (- 0.0558 - 0.1127)^2 + (0.2081 - 0.1127)^2] / 3 -1

Variance = [0.0731^2 + (-0.1685^2) + 0.0954^2] / 2

Variance = 0.00534361 + 0.02839225 + 0.00910116 / 2

Variance = 0.04283702 / 2

Variance = 0.02141851

The variance of returns is 0.02141851

Sheridan Company receives a $14000, 3-month, 8% promissory note from Carla Vista Company in settlement of an open accounts receivable. What entry will Sheridan Company make upon receiving the note?

Answers

Answer and Explanation:

The journal entry to record while receiving the note is shown below:

Notes receivable  Dr. $14,000

          To Accounts receivable $14,000

(Being receiving of the note is recorded)

Here the note receivable is debited as it increased the assets and credited the account receivable as it decreased the assets

The same is to be considered

Irfan runs a small business. His business’s total liabilities amount to $200,000. His net profit for the latest accounting period is $50,000. The total value of all the business assets comes to $600,000. What is the debt to asset ratio in the case of Irfan’s business? The debt to assets ratio of Irfan’s business, to two decimal places, is percent.

Answers

Small businesses are either services or retail operations like grocery stores, medical stores, tradespeople, bakeries, and small manufacturing units.

What is the meaning of Small businesses?

Small companies typically offer services or are retail establishments like grocery stores, pharmacies, tradesmen, bakeries, and micro-manufacturing facilities. Small businesses are privately held companies that need less equipment, labor, and cash than larger companies.

The most straightforward type of business is a sole proprietorship. Small businesses are distinct legal entities such as corporations, partnerships, and sole proprietorships that have fewer employees and/or lower yearly income than a regular-sized company. Businesses are considered "small" if they are eligible for government assistance and favorable tax treatment.

Learn more about the Small Business here:

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Professional Properties is considering remodeling the office building it leases to Heartland Insurance. The remodeling costs are estimated at $3.4 million. If the building is remodeled, Heartland Insurance has agreed to pay an additional $820,000 a year in rent for the next 5 years. The discount rate is 15 percent. What is the benefit of the remodeling project to Professional Properties? A) -$651,233 B) -$489,072 C) $5,214 D) $128,399 E) $311,417

Answers

Answer:

A) -$651,233

Explanation:

The computation of the benefit generated of the remodelling project is shown below:

If we considered the discounted rate i.e. 15% for 5 years of $820,000 so its present value would be $2,748,767 ($820,000 × 3.3521)

And, the predicted cost is $3,400,000

So here the cost is there instead of the benefit of

= $2,748,767 - $3,400,000

= -$651,233

Hence, the correct option is A

Employers can attract employees by offering
a. better health benefits
b. flexible working hours
C. longer vacation periods
d. all of the above

Answers

It’s D: All of the above.

Answer:

D ALL OF THE ABOVE

Explanation:

If a company has $10,000 in Cash, $2,000 in Accounts Receivable, $100,000 in Building and Land, $30,000 in Accounts Payable, and $20,000 in Notes Payable, how much is the business worth or what is its equity?

Answers

Answer:

the business is worth 162000

Explanation:

I added all of the stuff up to create a number have a nice day please

If a company has $10,000 in Cash, $2,000 in Accounts Receivable. The business worth and its equity is equal to $62,000.

What is the term Equity about?

Stockholders' equity, also referred to as shareholders' equity, it is the remaining amount of assets available to shareholders after all liabilities have been paid.

Given Information:

Cash=$10,000Accounts receivable=$2,000Building and land=$100,000Accounts payable=$30,000Notes payable=$20,000

Solution:

Equity=Total assets- Total liabilities

Equity=$10,000+$2,000+$100,000-$30,000-$20,000

Equity=$62,000

Hence, the equity of a company is equal to $62,000.

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An entrepreneur invests in his dream business of selling golf-carts. The initial investment is $230,064.00. The entrepreneur expects to generate an annual after-tax cash flow of $55,966.00 in running this business. How long before the project will pay back

Answers

Answer:

Folly Beach has long been the epicenter of fun and sun for generations of College of Charleston students.

Taylor Denny (left), Jake Cotreau (center) and Matthew Coda (right).

Taylor Denny (left), Jake Cotreau (center) and Matthew Coda (right).

But for three recent graduates, the quirky little beach town is all about business.

By the time alumni Matthew Coda, Jake Cotreau and Taylor Denny walked across the Cistern stage to receive their diplomas in May 2014 they already knew how and where they planned to begin their careers.

This month the three young entrepreneurs launched Golden Sun Taxi, a fleet of three solar-powered, golf cart taxis that shuttle passengers along the sandy streets of Folly Beach. Aimed primarily at tourists, the business is believed to be the first of its kind in the United States.

According to the basic quantity equation of money, if price and output fall while velocity increases, then:

Answers

Answer:

The quantity of money will fall

Explanation:

basic quantity equation of money's theory stressed that the general price of goods/services is attributed to the flow of money in circulation, I.e they have a linear relationship.The equation below gives the relationship between the quantity of money as well as price level. MV = PT

Where M = quantity of money

V =velocity of circulation

P = price level

According to the basic quantity equation of money, It should be noted that if price and output fall while velocity increases, then The quantity of money will fall.

The __________ is an integrated set of actions taken to produce goods or services (at an acceptable cost) that customers perceive as being varied in ways that are important to them.

Answers

Answer:

Differentiation strategy

Explanation:

This question defines the differentiation strategy. It is an approach which businesses develop whereby they provide their customers with unique and different goods and services than what other competing firms may have to offer in the market. The main goal is to have an advantage increase in the market compared to others.

A deposit of $1000 is made in a bank account that pays 24% interest per year compounded quarterly. Approximately how much money will be in the account after 10 years

Answers

Answer:

$10,285.72

Explanation:

In this scenario, we can use the compound interest formula to calculate the total after 10 years. The formula is the  A = P * [tex](1 + r/n)^{nt}[/tex]

where,

A = final value after interest

P = initial investment amount

r = annual interest rate in decimal form

n = number of time the interest is compounded based on t

t = total amount of time

In this case, the interest is compounded quarterly meaning 4 times a year, therefore we can plug all the values into the formula and solve for A

A = P * [tex](1 + r/n)^{nt}[/tex]

A = 1000 * [tex](1 + 0.24/4)^{4*10}[/tex]

A = 1000 * [tex](1.06)^{40}[/tex]

A = 1000 * 10.2857

A = 10,285.72

Therefore after 10 years the account will have a total of $10,285.72

A trading arrangement that eliminates most or all barriers to trade among participating nations and utilizes common barriers to trade with other countries outside the group is called a

Answers

Answer:

preferential trade agreement

Explanation:

This agreement is known as a preferential trade agreement. It is called this because it tends to make it easier for specific goods to be traded but only to the countries that are part of the group and/or agreement. This agreement also makes it harder for countries that are not part of the agreement to be able to trade with the countries that are in order to maintain the countries within the agreement trading with each other.

Headers and footers are handling instructions. True False

Answers

Answer:

False

Explanation:

Answer:

its true

Explanation:

edg got it correct

On its first day of trading, Twitter closed at $41.57 per share. Two years later and the price was $26.85, what was the annual return on the stock if returns are compounded daily?
A. 21.86%.
B. -21.85%.
C. -5.99%.
D. -19.63%.

Answers

Answer:

B. -21.85%.

Explanation:

Calculation for the annual return on the stock

First step is to calculate the Number of periods

Number of periods = 2 * 365 days in a year

Number of periods= 730

Second Step is to calculate the Daily return using this formula

Daily return = (Future value / initial value)^1/n - 1

Let plug in the formula

Daily return = (26.85 / 41.57)^1/730 - 1

Daily return = (0.645898)^1/730 - 1

Daily return = 0.999401 - 1

Daily return = -0.00059861*100

Daily return = -0.059861%

Last step is to calculate annual return

Using this formula

Annual return=Daily return/ Numbers of days in a year

Annual return = -0.059861% * 365

Annual return = -21.85%

Therefore the annual return on the stock if returns are compounded daily will be 21.85%

Jerry works as an accountant in a manufacturing firm. His firm has sold goods to customers on credit, while the full payment for the goods is expected after a month. In which category should Jerry mention the price of these goods? A. accounts payable B. accounts receivable C. cost of goods sold D. depreciation E. operating expenses

Answers

Answer:

If we are talking about the price Jerry and his firm purchased goods for I would say "Cost of goods sold", if we are talking about the revenue that will be collected from customers in the future I would say "accounts recceivable"

Explanation:

Answer:

the answer is b. accounts receivable

Explanation:

a word-for-word copy from edmentum:

"Accounts receivable: Let’s say that a business sells goods to a customer on credit. The customer plans to make the payment a few months later. A business recognizes this amount as a current asset called accounts receivable until it receives the payment."

A building is acquired on January 1, at a cost of $920,000 with an estimated useful life of 10 years and salvage value of $82,800. Compute depreciation expense for the first three years using the double-declining-balance method. (Round your answers to the nearest dollar.)

Answers

Answer:

when you compute depreciation expense using the double declining method, the salvage value is not included in the depreciation calculation. You continue to depreciate the asset until you reach its salvage value:

depreciation expense year 1 =  2 x 1/10 x $920,000 = $184,000depreciation expense year 2 =  2 x 1/10 x $736,000 = $147,200depreciation expense year 1 =  2 x 1/10 x $588,800 = $117,760

A manager wishes to build a 3-sigma range chart for a process. The sample size is five, the mean of sample means is 16.01, and the average range is 5.3. What are the UCL and LCL, respectively, for this range chart?

a. 33.9 and 11.2
b. 6.3 and 0
c. 11.2 and 0
d. 33.9 and 0

Answers

Answer:

c. 11.2 and 0

Explanation:

The computation of the upper control limit and the lower control limit is shown below:

Average Range = R  = 5.3

Now

The Upper control Limit is

= D4 × R

= 2.115 × 5.3

= 11.2095

And,  

The Lower control limit is

= D3 × R

= 0 × 5.3

= 0

Hence, the correct answer is Option C i.e. 11.2 and 0

June Corp. sells one product and uses a perpetual inventory system. The beginning inventory consisted of 100 units that cost $20 per unit. During the current month, the company purchased 580 units at $20 each. Sales during the month totaled 450 units for $43 each. What is the number of units in the ending inventory?

Answers

Answer:

Ending inventory in units= 230

Explanation:

Giving the following information:

Beginning inventory= 100 units

Purchases= 580 units

Sales during the month totaled 450 units

To calculate the ending inventory in units, we need to use the following formula:

Ending inventory in units= total units - units sold

Ending inventory in units= 680 - 450

Ending inventory in units= 230

I'LL MARK BRAINLIEST

Which of the following describes the impact a few years of heavy rainfall would have on commodity prices?
- Crops would enjoy a longer planting season, and commodity prices would go down. - - Planting would be delayed, resulting in crop shortages, and commodity prices would rise.
- Crops would increase due to additional rainfall, and commodity prices would go down. - Planting would be delayed, limiting farmers’ risks, and commodity prices would rise.

Answers

Answer:

Crops would enjoy a longer planting season, and commodity prices would go down

Explanation:

Answer:

c

Explanation:

Mario a publicly held corporation with a 21 percent tax rate, has agreed to pay an annual salary of 1.3 million to its employees Mrs. ryman in making your calculations ignore the employer payroll tax

Answers

Answer:

ah

Explanation:

The manager of Lawn and Garden Services would like to estimate the proportion of her employees' time spent performing various gardening and lawn care activities. She has made 400 random observations of a typical worker, with the following results:
Activity Time Observed
Mowing 200
Trimming 80
Raking 40
Miscellaneous 80
What is the probability that the true proportion of time spent mowing is exactly equal to the sample proportion?
a) 1
b) 0
c) .5
d) .2
e) 1

Answers

Answer:

b) 0

Explanation:

In this case, the manager observed that a worker spent 50% of his/her time mowing the garden, but in case this is correct, it would only apply to this worker. She would need to collect data and analyze it from a much larger sample which includes other workers in order to determine if this proportion applies to whole group. You cannot infer a conclusion based on a limited amount of data collected from just one subject. The methodology is incorrect.

Suppose apples are currently selling for 50 cents a piece. Someone says that apple
sellers can't make a decent living if they sell their apples so cheaply. This person says
there should be a law stating that no one can sell an apple and no one can buy an apple
for less than 75 cents. A law to raise the income of apple sellers is suggested. What might
be an unintended consequence (effect) of this law?

Answers

The inflation in the cost of apples may cause less people to buy apples, or for people to buy less apples overall. This drop in sales, although the farmer is getting more money per each apple, could cause the farmer to make less money than they would if they were selling apples for 50 cents a piece.

What is the present calue of 1000 received 10 years in the future if interst rates are 10% compounded quarterly?

Answers

Answer:

The present value is $57.31.

Explanation:

Future value, FV = $ 1000, n = 10 years, rate = 10% and m = 3.

FV = PV[tex](1 + r)^{mn}[/tex]

where FV is the future value, PV is the present value, r is the rate, m is the number of periods, n is the number of ears.

⇒ 1000 = PV[tex](1 + 0.1)^{10*3}[/tex]

             = PV[tex](1.1)^{30}[/tex]

1000 = PV x 17.4494

PV = [tex]\frac{1000}{17.4494}[/tex]

     = 57.31

The present value is $57.31.

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