The last five annual dividends for MysteryCorp have been: $1.25, $1.38, $1.49, $1.60, and $1.69. Next year's dividend is expected to be $2. The current stock price is $199 per share. First, calculate the geometric average annual rate of growth based on the historical dividends (taking into account the previous five -- do *not* include next year's expected dividend in this calculation). Your estimate of RE, the cost of equity, is ________%.

Answers

Answer 1

Answer:

Re = 8.79%

Explanation:

annual growth rates:

($1.38 - $1.25) / $1.25 = 0.104

($1.49 - $1.38) / $1.38 = 0.078

($1.60 - $1.49) / $1.49 = 0.074

($1.69 - $1.60) / $1.60 = 0.056

geometric growth rate = ⁴√(1.104 x 1.078 x 1.074 x 1.056) - 1 = ⁴√1.34976 - 1 = 1.0779 - 1 = 0.0779 = 7.79%

P₀ = Div₁ / (Re - g)

$199 = $2 / (Re - 0.0779)

Re - 0.0779 = $2 / $199 = 0.01

Re = 0.01 + 0.0779 = 0.0879 = 8.79%


Related Questions

Bruno's Lunch Counter is expanding and expects operating cash flows of $28,500 a year for 6 years as a result. This expansion requires $95,800 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $7,000 of net working capital throughout the life of the project. What is the net present value of this expansion project at a required rate of return of 10 percent

Answers

Answer:

$25,276

Explanation:

The computation of the net present value is shown below:

The Present value of inflows is

= Cash inflow × Present value of discounting factor (rate% , number of years)

= $28,500 ÷ 1.1 + $28,500 ÷ 1.1^2 + $285,00 ÷ 1.1^3 + $28,500 ÷ 1.1^4 + $28,500 ÷ 1.1^5 + $28,500 ÷ 1.1^6 + $7,000 ÷ 1.1^6

= $128,076.25

And,

Present value of outflows is

= $95,800 + $7,000

= $102,800

So

As we know that

NPV = Present value of inflows - Present value of outflows

= $128,076.25 - $102,800

= $25,276

Thought of the Day:
“If everything was perfect, you would never learn and you would never grow.” – Beyoncé

Joke of the Day:
What’s worse than finding a worm in your apple? Finding half a worm.

Random Fact of the Day:
Johnny Cash took only three voice lessons before his teacher advised him to stop taking lessons and to never deviate from his natural voice.

Journal Entry Idea:
What would you do if you were able to communicate with animals?

Answers

Answer:

talk to my dog, I think it would be entertaining

Answer:

Thought of the Day:

"People who wonder whether the glass is half empty or half full are missing the point. The glass is REFILLABLE."

Joke of the Day:

Why did the nurse need a red pen at work? In case she needed to draw blood.

Random Fact of the Day:

A giraffe's neck is (ironically) too short to reach the ground..

Journal Entry:

I were able to every communicate with animals, I would try my hardest to win them all over and convince them that they are all loved in the world.

Explanation:

This question was extremely fun! Thank you for posting! :)

Three years ago, Adrian purchased 430 shares of stock in X Corp. for $70,950. On December 30 of year 4, Adrian sells the 430 shares for $64,070. (Leave no answers blank. Enter zero if applicable. Loss amounts should be indicated with a minus sign.)

a. Assuming Adrian has no other capital gains or losses, how much of the loss is Adrian able to deduct on her year 4 tax return?

Answers

Answer:

6,880

Explanation:

The broad scope seeks to attract a large group of applicants who have a high probability possessing the characteristics that are needed to perform a specific job and qualifications are specific and specialized.
A. True
B. False

Answers

I believe the answer would be True.

Sewtfi951 Corporation makes an extra large part to use in one its fabulous products. A total of 14,500 units of this extra large part are produced and used every year. The company's costs of producing the extra large part at this level of activity are below:
Per Unit
Direct materials $3.20
Direct labor $7.80
Variable manufacturing overhead $8.30
Supervisor's salary $3.70
Depreciation of special equipment $2.10
Allocated general overhead $7.30
An outside supplier has offered to make the extra large part and sell it to Sewt1951 for $32.30 each If this offer is accepted the supervisor's salary and all of the variable costs, including the direct labor, can be avoided The special equipment used to make the extra large part has no salvage value or other use The allocated general overhead representa fixed costs of the entire Sewt1951 company. none of which would be avoided at the part were purchased instead of produced internally. In addition, the space used to make the extra large part could be used to make more of one of the company's other fabulous products, generating an additional segment margin of $34,500 per year for that product
What would be the annual financial advantage (disadvantage) for Sewt1951 Corp as a result of buying the extra large part from the outside supplier?

Answers

Answer:

($100,350)

Explanation:

Relevant cost to make

                                                         Per Unit    14,500 units

Direct materials                                 $3.20         $46,400

Direct labor                                        $7.80        $113,100

Variable manufacturing overhead   $8.30        $120,350

Supervisor's salary                            $3.70        $53,650

Relevant cost to make                      $23          $333,500

Relevant Cost to buy

                                                           Per Unit    14,500 units

Purchase price                                   $32.30      $468,350

Less: Additional segment margin                       $34,500

Relevant Cost to buy                                           $433,850

Here, we have financial disadvantage to buy as Relevant cost to make is lesser than Relevant Cost to buy

Financial (Disadvantage to buy) = $333,500 - $433,850

Financial (Disadvantage to buy) = ($100,350)

This is a good question to ask during an interview A) How many vacation days do I get? B) What kind of products or services do you provide? C) How many hours of training will I need? D) None of the above

Answers

Answer:

C) How many hours of training will I need?

Katherine Kocher has determined the following information about her own financial situation. Her checking account is worth $850 and her savings account is worth $1,200. She owns her own home that has a market value of $98,000. She has furniture and appliances worth $12,000 and a home computer and laptop worth $3,300. She has a car worth $12,500. She has recently purchased a mutual fund worth $5,500 and she has a retirement account worth $38,550. What is the value of her personal possessions

Answers

Answer:

Katherine Kocher

The value of her personal possessions is:

$171,900

Explanation:

a) Data and Calculations:

Checking account =        $850

Savings account =           1,200

Home value =               98,000

Furniture & appliances 12,000

Home computer/laptop 3,300

Car                                12,500

Investments:

Mutual fund                   5,500

Retirement account    38,550

Total value =             $171,900

b) Katherine's personal possessions include all her personal assets.  Her net worth will be the difference between all her personal assets and her personal debts or liabilities.

Your supermarket is trying to determine how many meatloaf dinners should be produced on Monday. The Monday demand for meatloaf dinners is normally distributed with a mean of 100 and a standard deviation of 20. The cost of producing a meatloaf dinner is $2.00, and the dinner sells for $7.00. It costs $0.60 at the end of the day to dispose of each unsold dinner. If the only possible production quantities are 100, 110, 120, and 130, what production quantity would you recommend

Answers

Answer:

The recommended production quantity is that which maximizes profit.

Quantity 130

Explanation:

Quantity to produce is the problem here. Remember that this is one of the fundamental questions in the discipline of Economics.

- What to produce?     - For whom to produce?

- How to produce?      - In what quantity?

Possible Production Quantities:

100,  110,  120, and 130

Mean Demand = 100

Standard Deviation = 20

Lowest possible demand = 100 - 20 = 80units

Highest possible demand = 100 + 20 = 120units

* Solve, using the mean demand for each quantity level. Assume also that on every Monday, the minimum possible quantity is what is purchased. That's the safest assumption anyway.

FOR QUANTITY 100,

Revenue = 7×100 = $700      Direct cost = 2×100 = $200

Indirect cost = 0.6×20 = $12          Total cost = 200 + 12 = $212

PROFIT = 700 - 212 = $488

FOR QUANTITY 110,

Revenue = 7×110 = $770        Direct cost = 2×110 = $220

Indirect cost = 0.6×30 = $18           Total cost = 220 + 18 = $238

PROFIT = 770 - 238 = $532

FOR QUANTITY 120,

Revenue = 7×120 = $840        Direct cost = 2×120 = $240

Indirect cost = 0.6×40 = $24           Total cost = $264

PROFIT = 840 - 264 = $576

FOR QUANTITY 130,

Revenue = 7×130 = $910          Direct cost = 2×130 = $260

Indirect cost = 0.6×50 = $30            Total cost = $290

PROFIT = 910 - 290 = $620

Remember, the base assumption is that only the minimum quantity of 80units is bought each Monday. This is the only way to account for wastage; which costs 0.6 dollar per unit. So, the more the quantity produced, the greater the likelihood of wastage.

Xanthe Corporation had the following transactions occur in the current year: 1. Cash sale of merchandise inventory. 2. Sale of delivery truck at book value. 3. Sale of Xanthe common stock for cash. 4. Issuance of a note payable to a bank for cash. 5. Sale of a security held as an available-for-sale investment. 6. Collection of loan receivable. How many of the above items will appear as a cash inflow from investing activities on a statement of cash flows for the current year

Answers

Answer:

How many of the above items will appear as a cash inflow from investing activities on a statement of cash flows for the current year?

- Sales of delivery truck at book value.

- Sale of a security held as an available-for-sale investment.

- Collection of loan receivable

Cash flow from investing activities is the section that shows the cash generated or spent relating to investment activities.

Calistoga Produce estimates bad debt expense at 0.20% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $471,000 and $1,620, respectively, at December 31, 2020. During 2021, Calistoga's credit sales and collections were $327,000 and $308,000, respectively, and $1,740 in accounts receivable were written off. Calistoga's accounts receivable at December 31, 2021, are:

Answers

Answer:

$488,260

Explanation:

Calculation for Calistoga's accounts receivable at December 31, 2021

Accounts Receivable 1/1/2021 $471,000

Credit sales$327,000

Less Collections (308,000)

Less Write-offs (1,740)

Accounts Receivable 12/31/2021 $488,260

Therefore Calistoga's accounts receivable at December 31, 2021, are:$488,260

On May 10, 2020, Cullumber Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the full contract price of $1,810 on July 15, 2020. The cost of the goods is $1,050. Cullumber delivers the product to Greig on June 15, 2020, and receives payment on July 15, 2020. Prepare the journal entries for Cullumber related to this contract. Either party may terminate the contract without compensation until one of the parties performs.

Answers

Answer:

Date                 Particular                         Debit    Credit

May 10, 2020  No Entry (Note 1)                $0     $0

                         (To record contact entered into)

June 15, 2020  Account Receivable A/c  $1,810

                                To Sales Revenue A/c            $1,810

                         (To record Sales)

June 15, 2020   Cost of goods sold A/c.    $1,050

                                To Inventory A/c                        $1,050

                         (To record cost of goods sold)

July 15, 2020     Cash A/c                             $1,810

                                 To Account Receivable A/c      $1,810

                          (To record payment received)  

Read the two statements and decide if they are true or false (I) Classical economists believe that prices are inflexible and that demand creates supply, so we should focus on increasing spending and stimulating aggregate demand to boost the economy out of a recession. (II) Keynesian economists believe that prices are flexible and that supply creates demand, and so we should focus on production rather than just increased spending.

Answers

Answer:

Both I and II are false

Explanation:

In the given situation, the condition should be reversed that means The Keynesian economists said that demand created the supply while on the other hand as per the classical economist it said that the supply created the demand

Therefore as per the given situation, both the statements are false as the reversion of the conditions are given in the question

The same is to be considered

The 2014 balance sheet of Steelo, Inc., showed current assets of $3,135 and current liabilities of $1,545. The 2015 balance sheet showed current assets of $3,100 and current liabilities of $1,545.
What was the company’s 2015 change in net working capital, or NWC? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign.)
Net working capital $

Answers

Answer:

-$35

Explanation:

The computation of the change in net working capital is as follows:

Net working capital = current assets - current liabilities

For 2014,

net working capital i s

= ($3,135 - $1,545)

= $1,590

And,

for 2015,

net working capital is

= ($3,100 - $1,545)

= $1,555

So, the  change in net working capital is

= ($1,555 - $1,590)

= -$35

Kazi Ltd. a manufacturer of powder soap wants to double their previous financial year profit which was Sh. 5 Million, through improved sales strategies and aggressive marketing. The following data was provided. p = 320, v = 110, f = Sh. 1.2 Million i) Determine Profit if sales are 35,000 units

Answers

Answer:

the profit in the case when the sale is 35,000 units is 6,150,000

Explanation:

The computation of the profit is as follows:

= (Selling price - variable cost) × number of units sold - fixed cost

= (320 - 110) × 35,000 units - sh. 1.2 million

= 7,350,000 - 1,200,000

= 6,150,000

Hence, the profit in the case when the sale is 35,000 units is 6,150,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered

The MM theory with taxes implies that firms should issue maximum debt.There is a difference between theory and practice because:

Answers

Answer:

There is a difference between theory and practice because the theory states with taxes implies that firms should issue maximum debt but in practice, this does not occur because it will result in bankruptcy if firms are issuing maximum debt. There should be a balance between how much debt is acquired and how much equity is taken. Therefore bankruptcy becomes a cause of concern if maximum debt is issued.

Lowell Inc. had a receivable from a foreign customer that is due in the local currency of the customer (stickles). On December 31, 2021, this receivable for §200,000 was correctly included in Lowell’s balance sheet at $167,000. When the receivable was collected on February 15, 2022, the U.S. dollar equivalent was $181,000. In Lowell's 2022 consolidated income statement, how much should have been reported as a foreign exchange gain?

Answers

Answer:

the amount reported as a foreign exchange gain is $14,000

Explanation:

The computation of the amount reported as a foreign exchange gain is shown below;

= receivables as on Feb 15 2022 - receivable as on December 31 2021

= $181,000 - $167,000

= $14,000

hence, the amount reported as a foreign exchange gain is $14,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Describe THREE different types of warehousing

Answers

Answer:

1. Private Warehouses: Owned and managed by manufacturers and only them can store goods in it.

2. Public Warehouses: Managed by the general public and everyone can store goods in it on payment of rent.

3. Government Warehouses: Owned and managed by the government.

Explanation:

We need various kinds of goods in our everyday life. We may get a portion of these things in mass and store them in our home. Additionally, finance managers likewise need an assortment of products for their utilization. Some of them may not be accessible constantly. However, they need those things over time with no break.

The need for storage emerges both for raw material just as completed items. Storage includes legitimate plan for saving merchandise from the hour of their creation or buy till the real use. At the point when this storage is done for a huge scope and in a predefined way it is called 'warehousing'.

Frolic Corporation has budgeted sales and production over the next quarter as follows: August September Sales in units Production in units July 50,000 71,200 62,000 62,300 66,650 The company has 6000 units of product on hand at July 1. 10% of the next month's sales in units should be on hand at the end of each month. October sales are expected to be 81,500 units. Budgeted sales for September would be (in units):__________.
A) 74,800
B) 65,000
C) 74,000
D) 72,850

Answers

Bro its c im sure just put c

A company has two products: A1 and B2. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools:
Budgeted Activity
Activity Cost Pool Budgeted Cost Product A1 Product B2
Activity 1 $60,000 2,400 6,000
Activity 2 $75,000 3,440 5,960
Activity 3 $104,000 8,400 2,000
Annual production and sales level of Product A1 is 9,680 units, and the annual production and sales level of Product B2 is 23,510 units. What is the approximate overhead cost per unit of Product B2 under activity-based costing?
A) $7.14
B) $7.98
C) $10.00
D) $13.28
E) $4.70

Answers

Answer:

The overhead cost per unit of product A1 under activity based costing is $13.53

Explanation:

An agency contract is terminated by an act of the parties when the principal and the agent have mutually agreed on:

Answers

Answer:

Termination.

Explanation:

A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.

Mutual assent is a legal term which represents an agreement by both parties to a contract. When two parties to a contract both have an understanding of the parameters, terms and conditions surrounding a contract, it ultimately implies that they are in agreement; this is generally referred to as mutual assent.

Hence, it is an important criteria that parties to a contract should be in agreement before proceeding to execute the terms in the contract.

In a nutshell, mutual assent connotes agreement, acceptance and consent to a contract by both parties.

Therefore, an agency contract is terminated by an act of the parties when the principal and the agent have mutually agreed on termination.

An agency contract is terminated by an act of the parties when the principal and the agent have mutually agreed on termination of Agency.

Termination of Agency is often done sometimes by operation of Law. This is done on the death of either the agent or the principal, the agency is rightly terminated as a person cannot act on behalf of non-existent person.

The parties can terminate the agency through mutual agreement. An agency relationship often needs the mutual assent of the parties and both the parties is entitled to the power to withdraw their assent.

Learn more from

https://brainly.com/question/19863582

On January 1, 2021, Strato Corporation borrowed $2 million from a local bank to construct a new building over the next three years. The loan will be paid back in three equal installments of $776,067 on December 31 of each year. The payments include interest at a rate of 8%. Prepare an amortization schedule over the three-year life of the installment note. (Round your final answers to the nearest dollar amount.)

Answers

Answer:

Period                           Installment    Interest Paid   Capital Paid   Balance

January 1, 2021                                                                                $2,000,000

December 31, 2021       $776,067       $160,000         $616,067    $1,383,933

December 31, 2021       $776,067         $110,715         $665,352       $718,581

December 31, 2021       $776,067         $57,486          $718,581                     0

Explanation:

Step 1

First clearly identify the parameters of the Loan

PV = $2,000,000

N = 3

PMT = - $776,067

P/YR = 1

i = 8%

FV = $0

Step 2

Since there is no missing parameter, we can then move on to construct our loan amortization schedule.

Period                           Installment    Interest Paid   Capital Paid   Balance

January 1, 2021                                                                                $2,000,000

December 31, 2021       $776,067       $160,000         $616,067    $1,383,933

December 31, 2021       $776,067         $110,715         $665,352       $718,581

December 31, 2021       $776,067         $57,486          $718,581                     0

Answer:

The amortization schedule attached, shows beginning balances,interest payments, annual loan repayments as well as the ending balances up until year 3 where the ending balance becomes $0 indicating that the loan principal has been fully amortized(repaid)

Explanation:

In constructing the amortization schedule, the interest payment is the beginning outstanding balance multiplied by the interest rate.

The principal repayment is the annual repayment minus the interest payment whereas the ending balance is the balance at the beginning of the year minus the principal repayment as shown  below:

when you should send a email

Answers

HubSpot researched open times to find late morning tends to get the most opens. Send emails at 11 a.m. for the best results. Data from MailerMailer also suggests that sending emails in the late morning during work hours gets the best percentage of opens.

Answer:

When the subject matter is objective and informative

While taking courses at a community college, Patrice also spends time each week assisting at her town's community center. Patrice aides the community center leaders and learns about how the center works. Although she is not paid for this time, she hopes to begin a full-time job at the community center after finishing her courses. Patrice's time at the community center is called
O secondary education.
O doctoral research.
O a certification
O an internship​

Answers

Answer:

While taking courses at a community college, Patrice also spends time each week assisting at her town’s community center. Patrice aides the community center leaders and learns about how the center works. Although she is not paid for this time, she hopes to begin a full-time job at the community center after finishing her courses. Patrice’s time at the community center is called

Explanation:

D. an internship

People often undergo internship. Patrice's time at the community center is called an internship​.

What does an internship implies?

An internship is known to be a kind of professional learning experience that people undergo that tends to offers vital, practical work linked to a student's field of study or career interest.

An internship is one that helps student to have an opportunity for career exploration and growth, and to learn a whole lot of skills.

Learn more about internship from

https://brainly.com/question/25385643

A producer of felt-tip pens has received a forecast of demand of 41,000 pens for the coming month from its marketing department. Fixed costs of $26,000 per month are allocated to the felt-tip operation, and variable costs are 35 cents per pen.
a. Find the break-even quantity if pens sell for $1 each.
b. At what price must pens be sold to obtain a monthly profit of $16,000, assuming that estimated demand materializes?

Answers

Answer and Explanation:

The computation is shown below:

a. The break even quantity is

= Fixed cost ÷ (selling price per unit - variable cost per unit)

= $26,000 ÷ ($1 - 0.35)

= $26,000 ÷ 0.65

= 40,000

b. The price is

Let us assume the price per pen  be x

As we know that

Profit = Revenue - costs

$16,000 = (x)(41,000) - $26,000 - .35(41,000)

$16,000 = 41,000x - 40,350

$56,350 = 41,000x

x = $1.37

how do i give brainlyest

Answers

Answer:

when you ask a question and you get one answer you cant give someone brainliest until another person answers and after two people answer you chose which one is the best by clicking the little crown in the upper right corner of their answers

Explanation:

HII I've made about 3 give aways with points and still have a bunch, but this question is asking if anyone wants to be friends? send a request!! also the first person to send a request will get 20 points to continue the giveaway!! i will also probably make more giveaways so make sure to friend me to see when another one takes place!!

Answers

Answer:

ok I will send bro gg bye

Answer:

okays

Explanation:

Privett Company Accounts payable $34,234 Accounts receivable 69,135 Accrued liabilities 6,513 Cash 15,673 Intangible assets 43,529 Inventory 71,631 Long-term investments 90,421 Long-term liabilities 76,608 Marketable securities 31,804 Notes payable (short-term) 21,712 Property, plant, and equipment 614,336 Prepaid expenses 1,617 Based on the data for Privett Company, what is the quick ratio, rounded to one decimal point

Answers

Answer:

1.87%

Explanation:

Based on the above information, the formula for Quick ratio is

= ( Cash + Marketable securities + Accounts receivables ) / Current liabilities

Where;

Cash = $15,673

Marketable securities = $31,804

Accounts receivables = $69,135

Current liabilities = Accounts payable + Accrued liabilities + Notes payable

= $34,234 + $6,513 + $21,712

= $62,459

Quick ratio

= ($15,673 + $31,804 + $69,135) / $62,459

= $116,612 / $62,459

= 1.87%

What is “active listening”?

Answers

Answer:

Active listening is a technique that is used in counseling, training, and solving disputes or conflicts

Answer:

an active listener fully concentrates, understands, responds and then remembers what is being said. It is being an active participant in the conversation. It differs from passive listening in that the person is making a conscious effort to not only remember what is being said but also fully comprehend it.

Explanation:

Analysts look for red flags in financial statements that may signal financial trouble. Which of the following is a red flag that suggests that a company may be in​ trouble? A. a consistent movement in​ sales, merchandise​ inventory, and accounts receivable B. operating activities are a major source of cash flows C. a significant decrease in net income for several years in a row D. a reduction in the debt ratio

Answers

Answer:

C. a significant decrease in net income for several years in a row

Explanation:

A  significant decrease in net income for several years in a row show that the firm is generating less revenue or its expenses are generally increasing at a rate greater than the sales. This may soon lead into a loss. A loss making firm will eventually have challenges in cashflow. So, this signals financial trouble.

Lusk Corporation produces and sells 15,800 units of Product X each month.
The selling price of Product X is $28 per unit, and variable expenses are $22 per unit.
A study has been made concerning whether Product X should be discontinued.
The study shows that $72,000 of the $108,000 in fixed expenses charged to Product X would not be avoidable, even if the product was discontinued.
If Product X is discontinued, the company's overall net operating income would:______.
a. decrease by $58,800 per month
b. Increase by $13,200 per month
c. increase by $49,200 per month
d. decrease by $49,200 per month

Answers

Answer:

a. decrease by $58,800 per month

Explanation:

The computation is shown below;

Particulars                                 Amount

Contribution from product X   $94,800 ($28 - $22) × 15,800 units

Less: Fixed cost                        -$108,000

Net loss avoided                        -$13,200

Non-avoidable fixed cost            $72,000

The Total cost in case the product fall $58,800

Hence, the correct option is a.

Other Questions
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