Answer:
$50
Explanation:
Dividend discount model (DDM) is used to calculate intrinsic value of a stock. Since the dividends are expected to grow indefinitely, the formula will be as follows;
Price (P0) = D1 / (r-g)
where D1 = Next year's dividend = 2.50
r = required rate of return = 12% or 0.12 as a decimal
g = dividend growth rate = 7%
Price (P0) = 2.50/(0.12-0.07)
P0 = 2.50 /0.05
P0 = $50
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Answer:
Following is given a solution for your question as required.
I hope it will help you a lot!
Explanation:
Answer:
Standard cost per pound= $34.21
Explanation:
The standard cost is the sum of direct material, direct labor, and total overhead. We will calculate each separate.
Direct material:
10 ounces cookie mix for $0.80= $8
5 ounces of milk chocolate for $4= $20
1 ounce of almonds for $12 the pound= $0.75
1 pound= 16 ounces
1 ounce= 0.0625*$12= $0.75
Direct labor:
1 minute in the mixing department
2 minutes in the baking department.
Mixing= $14.40* (1/60)= $0.24
Baking= $18*(2/60)= $0.6
Overhead:
Variable overhead is applied at a rate of $32.40 per DLH
Fixed overhead is applied at a rate of $60.00 per DLH.
Variable= 32.40 * (3/60)= $1.62
Fixed= 60* (3/60)= $3
Standard cost per pound= (8 + 20 + 0.75) + (0.24 + 0.6) + (1.62 + 3)= $34.21
