A share of ordinary shares just paid a dividend of $3.25 per share. The expected long-run growth rate for this share is 18%. If investors require a rate of return of 24%, what should the price of the share be? a. $71.86 b. $57.51 c. $63.92 d. $62.25
Q: EX 2-21 Entries to correct errors The following errors took place in journalizing and posting…
A: A journal entry records a business transaction in the accounting system of an organization. Journal…
Q: Which of the following reflects the effect of the year-end adjustment to record estimated…
A: Estimated uncollectable accounts are the estimated expenses which is not collected. As per the…
Q: Describe the basic requirements for an individual to be classified as an employer or an employee…
A: Federal Unemployment Tax Act (FUTA) is defined as the payroll taxes that are borne by employers on…
Q: If a business had sales of $4,316,000 and a margin of safety of 20%, the break-even point was Oa.…
A: Total sales = Margin of Safety + Break even point Break even point : At break even point, there is…
Q: Harding Corporation acquired real estate that contained land, building and equipment. The property…
A: The reported cost of building is based on the total cost of purchase and the total appraised value.…
Q: adjusting some transactions before Final Accounts are prepared?
A: The final accounts are prepared after making adjustments. Adjustments are very much required for the…
Q: Budgets are a most common control procedure within many organizations. Explain how each…
A: Budgets are often used as a control procedure within organizations as they provide a way to compare…
Q: прапу one produ prov following information to help prepare the master budget: a. The budgeted…
A: Cost of Goods Sold The cost of goods sold (COGS) is what a distributor, producer, or retailer pays…
Q: Company sells one product. Presented below is information for January: Jan.1 Inventory 118 Units at…
A: Golden Rules of Accounting: Account Debit Credit Personal Accounts The Receiver The…
Q: The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year…
A: Common shares are those shares which have voting rights. These are the owners of the entity. The…
Q: aration of the cash dividend at nt is entered. Do not indent manually. If no entry is required,…
A: (b) Allocation of dividend : Preferred dividend = 2000*$50*8% = 8000
Q: Mission Foods produces two flavors of tacos-chicken and fish - with the following characteristics.…
A: A fixed cost is one that does not change no matter how many units of a good or service are produced…
Q: 6) Use linear interpolation to find the indicated value. A vehicle purchased for $ 33,000…
A: Interpolation is a type of estimation of finding new data points based on given range of data…
Q: Prepare a Vertical Analysis.
A: Introduction:- Vertical analysis is used analysis each item in the financial statement is shown in…
Q: Select one: a. (iii) and (iv) only b. (ii) and (iii) only c. (i) and (ii) only d. All four
A: Diluted EPS Potential Ordinary Shares : It is a financial instrument or other contract, which may…
Q: A firm operated at 80% of capacity for the past year, during which fixed costs were $191,000,…
A: Operating profit is the amount of profit which is earned by an entity from its operations. It is…
Q: On January 1, Year 1, Marino Moving Company paid $64,000 cash to purchase a truck. The truck was…
A: Solution: Cost of truck = $64,000 Expected salvage value = $4,000 Depreciable cost = Cost of truck…
Q: Significant influence is normally presumed to exist if the investor owns at least a certain…
A: Significant influence, is power of participating in the decisions of investee. But, significant…
Q: A manufacturing company that produces a single product has provided the following data concerning…
A: Absorption costing is referred to as a full costing or full costing method in that you capture all…
Q: 4. Prepare a detailed overhead variance report that shows the variances for individual items of…
A: SOLUTION:- 4.…
Q: 1. The Orosco Security Service began operations on January 1, 2002. By the end of the first year of…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: ir Company purchased equipment that cost $110,000 cash on January 1, Year 1. The equipment had an…
A: Solution: Under straight line method of depreciation, depreciation is based on depreciable cost and…
Q: What are the correct deductions for Social Security, Medicare, and FIT?
A: Given in the question: Prior to payroll check $1,40,000 Weekly Pay $4,100…
Q: The reconciling items in the Bank Reconciliation are as follows: EFT receipt from a customer $1,200…
A: The petty cash fund is used to cover small business expense and it is replenished once it gets…
Q: Give typed solution and explanation Don't upload any type of photos ichard Gaziano is a manager…
A: Net Pay An worker's take-home pay, also known as net pay, is the sum of their wages after any…
Q: here In liquid enterprises, organisational roles are not important and organisational structures…
A: Comment - We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Obj. 4 EX 2-16 Trial balance The accounts in the ledger of Seaside Furniture Company as of August…
A: A general ledger's accounts are listed in an unadjusted trial balance, before any adjustment entries…
Q: On January 1, 2020, Beckham acquired a 2,000,000, 5-year bond, 10% bond for 2,169,329. Transaction…
A: bond is a type of loan obtained by company, on which a specific rate of interest is paid. FVTOCI is…
Q: At the beginning of December 2016, Caribbean Productions Ltd had 700 units of product BMR400 in…
A: There are two different methods for valuing inventory: marginal costing and absorption costing. In…
Q: Bank Phoenix gives two one-year loans of N$ 20 million loan to Mr A, and N$ 85 million to Mrs B. The…
A: Expected loss of default can be calculated as below. Expected loss = probability of default x…
Q: You have been hired by Patterson Planning Corp., an events planning company that recently had a fire…
A: Depreciation Depreciation is the expected decline in value of fixed assets over the course of a…
Q: Bolton Ltd currently has 200,000 issued shares trading at $3.50 per share and has announced a rights…
A: Right shares are issued to the existing shareholders on the basis of the proportion of holding. The…
Q: A manufacturing company that produces a single product has provided the following data concerning…
A: Variable Cost :— It is the cost that changes with change in units. It is constant in per unit for…
Q: record a journal entry worksheet
A: It has been asked to make the journal entry worksheet so all the journal entries regarding the…
Q: Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of…
A: Accounts receivables is the amount to be collected from the customers. The sales on account results…
Q: partnership to a PLC. Given the soaring demand for the building materials, the Crafts PLC requires…
A: Audit Risks - According to the definition of audit risk, it is the possibility that the auditor may…
Q: An individual has year-to-date earnings prior to the current period of $138,500, earns $3,600 during…
A: Self-employment taxes are the flat rate charges on the self-employment income of any taxpayer. The…
Q: Required: L Prepare flexible overhead budgets for October showing amounts of each variable and fixed…
A: SOLUTION:- The given above is about the 75% of capacity, so we should start from there to get the…
Q: 4 5 6 7 All of the following statements are correct about a multiple-step income statement except:…
A: 4. ans. It provide less information than a single step income statement. ( Explanation: multiple…
Q: Rosewood Company made a loan of $11,000 to one of the company's employees on April 1, Year 1. The…
A: NOTES PAYABLE Notes Payable is Generally Long Term Liabilities & Shown under the Non Current…
Q: View Policies Current Attempt in Progress 2. Prepare the journal entries that the lessee should make…
A: In order to document a business transaction in the company's accounting records, a journal entry is…
Q: On December 1, Farley Corporation assigns $250,000 of its accounts receivable to Greenhouse Company…
A: Journal entries refers to the entries which are made by the companies at the end of the accounting…
Q: Chad Ltd negotiated a lease on the following terms: the term of the lease was 5 years; the estimated…
A: Answer:- Operating lease meaning:- An operating lease is a contract in which the owner, referred to…
Q: SE10. BUSINESS APPLICATION Maki Corporation had cash flows from operating activities during the past…
A: Cash flows from operating activities means the cash which is either received or paid for the…
Q: If the amount Katie owes is close to her credit limit, it will negatively affect her credit score.
A: It will also be more difficult for her to be approved for new lines of credit in the future Carrying…
Q: ed business App. For smart mobile phones, the users who installed the app. in 2014 were 142000…
A: Total revenue refers to the total amount of money gained by an entity which is earned by selling its…
Q: Michaux Ltd. purchased an office building on January 1, 2006, for $450,000. At that time, it was…
A: Depreciation is a reduction in the book value of an asset over time, particularly due to wear and…
Q: The question is incorrect without 2 a and b
A: The manufacturing overhead cost is the indirect costs incurred to manufacture a product. Total…
Q: Ms. Sarah Wong is provided with a car by her employer. It is leased by the employer for $728 per…
A:
Q: Monty, Inc. began work on a $6,344,000 contract in 2022 to construct an office building. Monty uses…
A: CURRENT ASSETS Current Assets are Shown Under the Assets Side of the Balance Sheet. Current…
mc attached
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- 1. A share has just paid a dividend of OMR2.00. The dividend is expected to grow constantly at 20% and the required return on similar shares is 8%. What price is the share? A. OMR20.00 B. Approximately OMR16.67 C. OMR18.00 D. It cannot be calculatedA share of common just paid a dividend of $1.00. If the expected long-run growth rate for this stock is 5.4%, and if investors' required rate of return is 13.9%, what is the stock price? A. $11.04 B. $12.40 C. $13.76 D. $15.00 E. $9.42A share of common stock has just paid a dividend of $2.00. If the expected long-run growth rate for this stock is 15 percent, and if investors require a 19 percent rate of return, what is the price of the stock? a. $71.86 b. $62.25 C. $44.92 d. $57.50 e. $64.00
- Westpac pays a current dividend of $0.5, which is expected to grow at a rate of 4% indefinitely. The required rate of return agreed by Westpac shareholders is 6%. What is the current value of the Westpac share based on the constant-growth dividend discount model (DDM)? Select one: a. $23 b. $20 c. $8.67 d. $25 e. $26What will be the price of a share in year 4, given dividend just paid (Do) as $3, required rate of return as 20% and constant growth in dividend as 15% A. $170.78 B. $120.68 O C. $162.64 • D. $271.723. What is the intrinsic value of a share of stock if expected dividends are $8/share and the expected price year is $90/share? Assume a discount rate of 10%. What is the expected return and what should be the decision from an investor?. in 1
- Suppose you know a company's stock currently sells for $60 per share and the required return on the stock is 12 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share? Multiple Choice O O $3.60 $3.23 $3.40 $6.79A stock just paid a dividend of D0 = $1.50. The required rate of return is rs = 14.1%, and the constant growth rate is g = 4.0%. What is the current stock price? Select one: a. $12.82 b. $12.97 c. $15.45 d. $18.84 e. $19.15An ordinary share currently pays a dividend of R2 for the year. Expected dividends growth is 20% for the next three years and then growth is expected to revert to 7% thereafter for an indefinite amount of time. The appropriate required rate of return is 15%. What is this ordinary share’s value?1. R33.892. R34.563. R36.934. R37.23
- A. If a security offers a dividend amounting to P 5.23/ share and an investor purchased 200 shares at P 77.50/share, what is his Total Investment Return at the end of the year if the share price increased by 8%? Based on the given above, compute for the Dividend Yield Rate, Capital Gains Rate, and Total Investment Return Rate. Dividend Yield Rate: Dt+1/Pt = (P5.23+1/77.50) = 0.06748 or 6.748% Capital Gains Rate: (Pt+1-Pt) /Pt = 77.50 x 8%= 6.2 = 77.50/6.2= 83.7 = 83.7-77.50 = 6.2/77.50 = 0.08 or 8% Total Investment Return Rate: (Dt+1+Pt+1-Pt) /Pt = (5.23+1+83.7-77.50)/ 77.50 = 0.147 or 14.7%Company R has paid most recent dividend as $2.55. The dividend will be paid by the company forever and the dividend will grow at 6.00% forever. The required rate of return is 10%. What will be the current stock price? a. $63.750 b. $67.575 c. $65.125 d. $67.255The share of XYZ company is expected to distribute 3.5$ dividend a year from now, 3.5$ dividend 2 years from now and 5$ dividend 3 years from now. It is also expected that the share price will be equal to 70$ at the year 3. If the required rate of return on this share is 12%, what is the price right now? Select one: a.59.30 b.67.12 C.58.90 O d.61.10
