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almond37 [142]
2 years ago
4

Mannix Corporation stock currently sells for $57 per share. The market requires a return of 11 percent on the firm’s stock. If t

he company maintains a constant 3.75 percent growth rate in dividends, what was the most recent dividend per share paid on the stock?
Business
1 answer:
Kaylis [27]2 years ago
6 0

Answer:

$3.98 per share

Explanation:

Calculation for what was the most recent dividend per share paid on the stock

First step is to find the price of stock

Using this formula

Price of stock = Next Expected Dividend/(Required Return - Growth Rate)

Let plug in the formula

$57 = D1/(11%-3.75%)

D1=$57×0.0725

D1 = 4.1325

Second step is to find the most recent dividend per share paid on the stock

Using this formula

Most recent dividend = Next Expected Dividend/(1+growth Rate)

Let plug in the formula

Most recent dividend= 4.1325/(1.0375)

Most recent dividend=$3.98 per share

Therefore the most recent dividend per share paid on the stock will be $3.98 per share

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Changes in variables, such as income, cost of living, interest rates, and savings and borrowing patterns most likely reflect cha
Effectus [21]

Answer:

A. economic

Explanation:

Economic environment -

It consists of all the economic factors that can affect the economic market , consumers behavior , is referred to as the economic environment .

These factor are capable to alter any business .

Any changes in the monetary value , like cash , income , savings and interest rate can alter the economic environment as well .

Hence , from the given information of the question,

The correct option is A. economic environment .

3 0
2 years ago
FARO Technologies, whose products include portable 3D measurement equipment, recently had 36 million shares outstanding trading
erma4kov [3.2K]

Answer:

A. $117 million

B.13%

C. $21.75

Explanation:

B. Calculation to determine How large a loss in dollar terms will existing FARO shareholders experience on the announcement date

Expected Loss= 390*30%

Expected Loss= $117 millions

Therefore How large a loss in dollar terms will existing FARO shareholders experience on the announcement date will be $117 millions

B. Calculation to determine What percentage of the value of FARO’s existing equity prior to the announcement is this expected gain or loss

First step is to calculate the Existing Shares Value

Existing Shares Value =36*$25

Existing Shares Value= $900 millions

Now let calculate the Expected Loss %

Expected Loss % = $ 117/$ 900

Expected Loss % = 13%

Therefore the percentage of the value of FARO’s existing equity prior to the announcement is this expected gain or loss will be 13%

C. Calculation to determine At what price should FARO expect its existing shares to sell immediately after the announcement

Price Per Share: $ 25*(1 - 0.13)

Price Per Share$25*0.87

Price Per Share: $21.75

Therefore what price should FARO expect its existing shares to sell immediately after the announcement is $21.75

6 0
2 years ago
Zagat Inc. enters into an agreement on March 1, 2014, to sell Werner Metal Company aluminum ingots in 2 months. As part of the a
salantis [7]

Answer:

A. Debit Cash with $200,000, and Credit Liability to Werner Metal Company with $200,000 .

B. Debit interest expense and Liability to Werner Metal Company  with $4,000 and $200,000 respectively, Credit cash with $204,000.

Explanation:

A) Prepare the journall entry necessary on March 1, 2014.

Details                                                     Dr ($)                 Cr ($)

Cash                                                      200,000

Liability to  Werner Metal Company                             200,000

<em>Being cash received from the agreement to sell aluminum ingots in 2 months.</em>

B) Prepare the journal entry for the repurchase of the ingots on May 1, 2014.

 Details                                                       Dr ($)                 Cr ($)

Interest expense ($200,000 × 2%)          4,000

Liability to  Werner Metal Company     200,000

Cash                                                                                   204,000

<em>Being settlement of liability with interest for the repurchase of the ingots.</em>

4 0
2 years ago
It tastes better than candy!" is an advertising slogan for a new probiotic gummy. The manufacturer claims that their probiotics
larisa86 [58]

Answer:

The correct answer is D) product differentiation.

Explanation:

Product differentiation is a competitive strategy that aims to allow the consumer to perceive differently the product or service offered by a company, with respect to those of the competition.

Product differentiation can be based mainly on various attributes such as quality, color, size, after-sales service, specialized attention, location, brand recognition or luxury. But any attribute makes perceive a product or service differently is considered product differentiation.

It should be noted that the differentiation also has a subjective element since consumers can perceive that a certain brand is different from another based not on the comparison of objective characteristics but on the idea that they have made of the company and its image.

3 0
2 years ago
Bill Blum insured his hardware store with a fire insurance policy for $88,000 at a cost of $0.84 per $100. Ten months later his
Dovator [93]

Answer:$616

Explanation:

The insurance policy is a policy on an annual basis in which premium are paid in advance to enable the insurance firm to provide cover for the clients.

Cost of insurance

$0.84* ($88000/100)

= $732.92 per annum

However since the insurance was cancelled after 10 months he will only be responsible for 10 months.

$739.2/12*10

=$616

4 0
2 years ago
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