A 7X Corp.just paid a dividend of $2.30 per share. The dividend are expected to grow at 23 percent for the next eight years and then level off to a growth rate of 7 percent indefinitely. If the required return is 15 percent, what is the price of the stock today?

Answers

Answer 1

Answer:

Answer:

Price of stock=$ 77.88

Explanation:

The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.

The price of the stock will the sum of the present value of the growing annuity and the growing perpetuity

Present value of dividend from year 1 to 8

The PV of the growing annuity = A/r-g) ( 1- (1+g)/(1+r)^n )

A- dividend payable now , r- required of return, g-growth rate, number of years

PV = (2.30×1.23)/(0.15-0.23)× (1- (1.23/1.15)^8) = 25.199

PV of Dividend from year 9 and beyond:

P = D× g/(r-g)

This will be done in two steps:

Step 1: PV(in year 8)of dividend = 2.30× 1.23^8×1.07/(0.15-0.07) = 161.16

Step 2 : PV in year 0 = 161.16× 1.15^(-8)= 52.684

PV of Dividend from year 9 and beyond = 52.684

Price of stock = 25.19 + 52.68= 77.88

Price of stock=$ 77.88

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Boat Guard, which used a standard cost accounting system, manufactured 210,000 boat fenders during the year, using 1,780,000 feet of extruded vinyl purchased at $1.30 per foot. Production required 4,900 direct labor hours that cost $13.00 per hour. The materials standard was 8 feet of vinyl per fender at a standard cost of $1.40 per foot. The labor standard was 0.024 direct labor hour per fender at a standard cost of $12.00 per hour.1. Compute the price and quantity variances for direct materials. Compute the rate and efficiency variances for direct labor.2. Does the pattern of variances suggest that the company’s managers have been making trade-offs? Explain.
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Which of the following elements is exclusive to the services marketing mix, and not the traditional marketing mix?a) processb) productc) priced) placee) promotion

Answers

Answer:

a) process

Explanation:

The P's are Product, Pricing, Place, Promotion, People, Process and Physical Evidence and for Traditional Marketing is Product, Pricing, Place and Promotion

This year, Druehl, Inc., will produce 60 comma 000 hot water heaters at its plant in Delaware, in order to meet expected global demand. To accomplish this, each laborer at the plant will work 160 hours per month. If the labor productivity at the plant is 0.15 hot water heaters per labor hour, how many laborers are employed at the plant?

Answers

Answer:

The answer is: 2500 employees

Explanation:

Giving the following information we need to calculate the number of employees:

Total production= 60000

Hours per worker= 160 hours

labor productivity= 0,15

It takes to a single employee= 1/0,15= 6,67 hours to make a heater.

Each worker produces=160/6,67=24 heaters a year.

Now we can calculate the number of workers:

60000/24= 2500 employees

On January 1, Year 1, Chaco Company sold $300,000 of 10% twenty-year bonds. Interest is payable semiannually on June 30 and December 31. The bonds were issued for $359,378, priced to yield 8%. What is the amount of effective interest expense that Chaco will record for the six months ended June 30, Year 1

Answers

Answer:

The amount of effective interest expense that chaco will record in the first six months is $14,375

Explanation:

interest payment that will be first made is on June 30, Year 1. Therefore, the outstanding balance used in the calculation is the issue price.

The interest expense is calculated by these formula

Interest expense = Effective semiannual interest rate × Outstanding balance

Interest expense = (8% ÷ 2) × $359,378 = $14,375

So the interest expense is gotten as %14,375

Final answer:

The Chaco Company will record an effective interest expense of $14,375.12 for the six months ended June 30, Year 1.

Explanation:

The effective interest method is a technique used for discounting bonds. This method is used to calculate the amount of interest expense for a specific time period. In this case, we are finding the effective interest for the six months ended June 30, Year 1 on a bond issued by the Chaco Company.

The formula for the effective interest method is: Book value of the bond at the beginning of the period X Yield rate/Number of periods per year.

The book value of the bond at the beginning of the time period (January 1, Year 1) was $359,378. The yield was 8% and there are two periods in the year because the interest is paid semiannually.

So, the effective interest for the six months ended June 30, Year 1 = $359,378 * 8%/2 = $14,375.12.

Therefore, the amount of effective interest expense that Chaco will record for the six months ended June 30, Year 1 is $14,375.12.

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Consumption expenditures $800Investment expenditures 200
Government purchases 300
Exports 100
Imports 200
Wages 800
Refer to Table above. Consider the data above (in billions of dollars) for an economy:
Gross domestic product (in billions of dollars) for this economy equals
A) $2,200.
B) $1,600.
C) $1,400.
D) $1,200

Answers

Answer:

GDP= $1,200

Explanation:

From the question above, we are given the following values

Consumption expenditure= $800

Investment expenditures= $200

Government purchases= $300

Imports= $100

Exports= $200

Wages= $800

Therefore the Gross Domestic Product(GDP) can be calculated as follows

GDP=Consumption+investment+government spending+(export-import)

= $800+$200+$300+($100-$200)

= $800+$200+$300+(-$100)

= $800+$200+$300-$100

= $1,200

Hence the Gross Domestic Product (in billions of dollars) for this economy is $1,200

Bidder conferences are used to:(A) Answer questions about the project prior to submittal of proposals
(B) Answer questions about the project after contract award
(C) Debrief the bidder on their performance after completion of the contract
(D) Solicit pricing information from the bidders on proposed scope changes

Answers

Answer:

A. Answer questions about the project prior to submittal of proposals

Explanation:

A bidder conference is a meeting held by a buyer to discuss a possible purchase with multiple potential suppliers.

Final answer:

Bidder conferences are used to answer questions about the project prior to the submittal of proposals, ensuring a clear understanding of project requirements for all potential bidders.

Explanation:

Bidder conferences are a tool used in the procurement process of projects. The correct answer to what bidder conferences are used for is (A) Answer questions about the project prior to submittal of proposals. These conferences provide a forum for potential bidders to clarify any uncertainties regarding the project scope, specifications, and procurement process. The primary purpose of a bidder conference is to ensure that all potential bidders have a clear and common understanding of the project requirements, which helps them to prepare accurate and competitive proposals.

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Which of the following situations is NOT asegregation of duties violation?a.The treasurer has the authority to signchecks but gives the signature block tothe assistant treasurer to run the check-signing machine.b.The warehouse clerk, who has custodialresponsibility over inventory in thewarehouse, selects the vendor andauthorizes purchases when inventoriesare low.c.The sales manager has the responsibilityto approve credit and the authority towrite off accounts.d.The department time clerk is given theundistributed payroll checks to mail toabsent employees.e.The accounting clerk who shares therecord-keeping responsibility for theaccounts receivable subsidiary ledgerperforms the monthly reconciliation ofthe subsidiary ledger and the controlaccounts

Answers

Answer:

(A) The treasurer has the authority to sign checks but gives the signature block to the assistant treasurer to run the check-signing machine.

Explanation:

A segregation of duties is an internal control in business. It is assigning more than one person to a task usually to prevent error or any fraudulent activity. Therefore, the treasurer giving the signature block to the assistant treasurer to run the check-signing machine is not a violation of a segregation of duties.

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