P7-9: Common stock value: Constant growth McCracken Roofing Inc. common stock paid a dividend of $1.20 per share last year. The company expects earnings and dividends to grow at a rate of 5% per year for the foreseeable future. a. What required rate of return for this stock would result in a price per share of $28? b. If McCracken expects both earnings and dividends to grow at an annual rate of 10%, what required rate of return would result in a price per share of $28?
Answers
Answer:
a) rate of return = 0.095 = 9.5%
b) rate of return = 0.147143 = 14.7143%
Explanation:
a) using the constant growth model:
therefore
b) using the working from above, we showed that
given g= 10%, P0=28 and D0=1.2
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Answers
Answer:
The possible topics for writing a research paper:
- To write some research paper or perform any work related in order to address the negative externalities related to natural resources, Sundar must have some idea about the air pollution and its causes, as each person who wants to spread the idea about natural phenomenons or process must know about one of the most talk about terms including the environmental pollution and the factors that are causing it.
- So, we can have our guess and the possible answer on which Sundar can write a research paper which might be, "Humanity spreads: air pollution and deforestation".
Please note that it is useful to add the options provided with the question, in order to get an accurate answer and have your question answered quicker.
Hope this helps!!
B. To demonstrate how supply affects demand.
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C. To indicate how supply and demand relate to price.
D. To show the level of demand at various prices.
SUBMIT
Answers
Answer:
a is your answer
Explanation:
Answers
The current value of Jim's bonds are $8,749.57.
What is the value of Jim's bonds?
The value of the bond can be determined by calculating the present value of the cash flows of the bonds. The present value is the sum of discounted cash flows.
Value of the bond = present value of coupon payments + present value of the face value of the bond at maturity.
Present value of the face value of the bond at maturity = $10,000 / (1 + 0.0175^120) = $1247.01
Present value of coupon payments = future value / (1 + 0.07^30)
Future value = amount x annuity factor
Annuity factor = {[(1+r)^n] - 1} / r
Where:
- Amount = 1.5% x 10,000 = $150
- r = interest rate = 7%/4
n = number of years = 30 x 4 = 120
$150 x [({1.0175^120) - 1} / 0.0175] = $60,164.43
Present value = $60,164.43 / (1.0175^120) = $7,502.56
Value of the bond = $7,502.56 + $1247.01 =$8,749.57
To learn more about present value, please check: brainly.com/question/26537392
Answer:
current value is $8749.57
Explanation:
given data
face value = $10,000
maturity period = 30 = 30 × 4 = 120
interest = 1.5% every 3 month
solution
we will apply here bond price formula that is
bond price = coupon × ............................1
here r is rate and n is no of period and
so rate = = 1.75% = 0.0175
and coupon is $150
put here value
bond price = $150 ×
bond price = 8749.57
so current value is $8749.57
Answers
Answer:
Medicaid can provide cost-sharing assistance. Depending on your income, you may qualify for the Qualified Medicare Beneficiary (QMB). If you are enrolled in QMB, you do not pay Medicare cost-sharing, which includes deductibles, coinsurances, and copays.
Explanation:
The Centers for Medicare & Medicaid Services (CMS) are responsible for implementing laws and various forms of guidance, sub-regulatory guidance operational updates and technical clarifications passed by Congress related to Medicaid and the Basic Health Program to explain what states and others need to do to comply.
There are 4 “metal” categories of health insurance plans: Bronze, Silver, Gold, and Platinum. These categories show how you and your plan share costs. Plan categories are independent from quality of care. The total costs for health care include a monthly premium bill to the insurance company and out-of-pocket costs, which have a big impact on your total spending on health care and sometimes more than the premium itself as the out-of-pocket maximum is the amount you have to spend for covered services in a year, and only after you reach this amount, the insurance company pays 100% for covered services; and the deductible, which is the amount you have to spend for covered health services before your insurance company pays anything (except free preventive services). The Plan and network types allow you to use or not doctors or health care facilities. Plans & prices are issued according to the income and household information and they determine the copayments and coinsurance, which are payments you make each time you get a medical service after reaching your deductible
There are plans that have very low monthly premiums, but have high deductibles and pay less of your costs when you need care.
If you qualify for "cost-sharing reductions" (CSRs), Silver plans may offer good value because of a lower deductible. The income determines where your estimate falls in the range for cost-sharing reductions.
A Gold plan or Platinum plan generally have higher monthly premiums but pay more of your costs when you need many doctor visits or regular prescribed medication.
Answer:
^^^^
Explanation:
Answers
Answer:
A. 36,000 units
B. 40,000 units
C. 32,800 units.
Explanation:
A. To calculate units transferred out we add beginning work in process to units transferred during the period and subtract the ending work in process units.
8,000 + 32,000 - 4,000 = 36,000
Units transferred out of process in June = 36,000
B. The equivalent units of production for materials will be ;
8,000 + 32,000 = 40,000.
C. The equivalent units of production for Conversion costs will be:
(8000 * 30%) + 32000 - (4000 * 40%) = 32,800.
Answers
Answer:
Hence, the manufacturing margin for Part A is $1,400,000
Therefore, the correct option is B i.e $1,400,000
Explanation:
The manufacturing margin is somewhat same like contribution margin. SO, here we applying the formula of contribution margin.
For computing the manufacturing margin for Part A, the calculation is shown below.
Manufacturing margin = (Selling Price per unit × Number of units) - (Variable manufacturing cost per unit × Number of units)
= (5,000 × $800) - ($5000 × $520)
= $4,000,000 - $2,600,000
= $1,400,000
Hence, the manufacturing margin for Part A is $1,400,000
Therefore, the correct option is B i.e $1,400,000
Final answer:
The manufacturing margin for Part A is calculated by subtracting variable costs per unit from the selling price per unit and multiplying the result by the total number of units sold. Therefore, the manufacturing margin for Part A is $1,000,000.
Explanation:
The manufacturing or contribution margin is the difference between the selling price per unit and the variable costs per unit. In this case, the selling price per unit is
$800 and variable manufacturing cost per unit is $520. The sales commission per unit for Part A is $80. Therefore, the manufacturing margin per unit equals $800 - $520 - $80 which is $200. When you multiply this margin per unit by the total units sold which is 5,000 units, we get the total manufacturing margin. Hence, the manufacturing margin for Part A is $200 * 5,000 =
$1,000,000
.
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