Answer:
The answer is $56.68
Explanation:
Solution
We recall that:
The firm paid a dividend of =$7.80
The projected growth of dividends is at a rate = 9.0%
The annual return = 24.0%
Now,
V = ($7.80 * (1.09)/(.24 - 0.9)
= (8.502)/(.24-0.9)
= (8.502) * (-0.66)
= $56.68
Therefore, this would be the most we would pay for the stock. If we paid less than that, our return would be above the 24%.
Answer:
There is a loss on buying from outside supplier ,Peach's offer should not be accepted.
Explanation:
Variable cost is a cost that varies with number of units produced or sold so it is always a relevant cost while making decision.
Fixed cost remains constant irrespective of number of units so it is a irrelevant cost unless avoidable.So in the given case ,fixed cost $70 is irrelevant since same will be incurred whether purchased or manufactured.
Incremental savings
Saving in variable cost 220
saving in fixed cost 25
Total saving 245
less: Incremental cost (270)
Incremental profit /(loss) on buying from outside supplier (25)
Total loss 25*5900= -147500
Therefore, There is a loss on buying from outside supplier ,Peach's offer should not be accepted.
Answer:
$5,000
Explanation:
Based on the information given we were told that had a total basis in her 500 shares of stock of the amount of $5,000 which means that The total basis of Melissa's 1,000 shares of stock after the dividend is $5,000 which is her total basis in her 500 shares of stock.
Answer:
$24.86
Explanation:
The estimated stock of Zephyrl is $50
This is for a period of 5 years
The rate of return is 15%
Therefore the price that will be paid for this stock can be calculated as foloes
50= x (15/100^5)
50= x (0.15+1^5)
50= x (1.15^5)
50= 2.0113x
Divide both sides by the coefficient of x
= 50/2.0113
= 24.86
Hence the price that will be paid for the stock is $24.86
Answer:
The correct answer is $79,000 and $37,000.
Explanation:
According to the scenario, the given data are as follows:
Net income = $116,000
Doug's Salary = $52,000
Receive an interest = 10%
So, the amount to be shared equally = [$116,000 - $52,000 - ( 10% × $220,000) - ( 10% × $320,000)] ÷ 2
= $5,000
So, Doug share = $52,000 + ( 10% × $220,000) + $5,000
= $79,000
Kayla share = (10% × $320,000) + $5,000 = $37,000
