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Dimas [21]
2 years ago
7

Chiptech, Inc., is an established computer chip firm with several profitable existing products as well as some promising new pro

ducts in development. The company earned $1 per share last year and just paid out a dividend of $.50 per share. Investors believe the company plans to maintain its dividend payout ratio at 50%. ROE equals 20%. Everyone in the market expects this situation to persist indefinitely.
What is the market price of Chiptech stock?
Business
1 answer:
vaieri [72.5K]2 years ago
7 0

Answer:

$11

Explanation:

"The required return for the computer chip industry is 15%, and the company has just gone ex-dividend (i.e., the next dividend will be paid a year from now, at t 1) (Round your answer to 2 decimal places.)"

g = ROE*b

g = ROE * (1-Payout ratio)

g = 20% * (1-0.5)

g = 10%

P0 = D1/k-g

P0 = D0(1+g) / k-g

P0 = 0.5(1+0.10) / (0.15+0.10)

P0 = $11

S0, the market price of Chiptech stock is $11

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Helen, who is single, is considering purchasing a residence that will provide an $18,000 tax deduction for property taxes and mo
GenaCL600 [577]

Answer:

amount of tax saving is $4320

Explanation:

given data

tax deduction = $18000

marginal tax rate = 24%

effective tax rate = 20%

to find out

amount of tax saving

solution

we know tax saving formula that is

tax saving = tax deduction × marginal tax  ........................1

so now put here all value in equation 1

tax saving = tax deduction × marginal tax

tax saving = 18000 × 24%

tax saving = 18000 × 0.24

tax saving = 4320

so amount of tax saving is $4320

4 0
2 years ago
Nation’s Capital Fitness, Inc. operates a chain of fitness centers in the Washington, D.C., area. The firm’s controller is accum
g100num [7]

Answer:

Instructions are below

Explanation:

Giving the following information:

January 520 $ 4,470

February 490 4,260

March 300 2,820

April 500 4,350

May 310 2,960

June 480 4,200

July 320 3,000

August 400 3,600

September 470 4,050

October 350 3,300

November 340 3,160

December 320 3,030

A) To calculate the fixed and variable costs, we need to use the following formulas:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (4,470 - 2,820) / (520 - 300)

Variable cost per unit= $7.5

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 4,470 - (7.5*520)

Fixed costs= $570

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 2,820 - (7.5*300)

Fixed costs= $570

B)

Total cost= 570 + 7.5x

x= hours of mantainance

C) x= 590

Total cost= 570 + 7.5*590

TC= $4,995

D) x= 600

Total cost= 570 + 7.5*600

TC= $5,070

8 0
2 years ago
What do you feel would be a minimally acceptable rate of pay? (ex. $X.XX or $XX,XXX):_______.
Veronika [31]

Correct question: I do not know if this question is complete or not but if i understand you well enough, I'd say that the minimally acceptable rate of pay will be in accordance to what is obtainable in yur state or area. $X.XX represents pay per hour while $XX.XXX represents pay per year.

Answer:

I would say Negotiable to be on the safe side if you can't come up with a certain amount by yourself.

Explanation:

When you have to fill on an application and it gets to the rate of pay, you either be on the safer side and write Negotiable if you do not want to sell yourself short or be too pricey. But it is almost certain that the rate of pay applicable in your state or area is what you will be getting per hour.

I hope this helps.

5 0
2 years ago
B. from an institutional-based view, what are domestic-incumbents in china – in collaboration with global heavyweights- interest
aliina [53]

Answer:

Explanation:

The problem is that BoP automakers are being kept side by institution-based barriers in China. automakers that are in foriegn countries never worry about preferential treatment of the BoP automakers. The Lessons learnt from indigenous reverse innovation are use of all available resources , use of minimal energy such as fuels Have the indigenous cars for the rural areas continuous recycling of the old vehicles .

5 0
2 years ago
A bond with a coupon rate of 7% makes semiannual coupon payments on January 15 and July 15 of each year. The Wall Street Journal
VladimirAG [237]

Answer:

The invoice price of the bond will be $100,127.88

Explanation:

Bonds are nothing but the debt instrument which a company uses to raise capital from the general public, these bonds can be of both short and long term period.

In the question it is given that bond has a coupon period of 182 days which means the bond is of short term period. Coupon rate of 7% means the bond gives the interest of 7% to its holder semiannually every year on January 15 and July 15.

It is given that the ask price for the bond on January 30 is 100.125 percent on par value of the bond which we are assuming to be $1000, which means the ask price is

$1000 X 100.125 = $100,125    ( ASK PRICE)

now we have to calculate the interest, remember the semiannually payment of interest has already been made on January 15 which means we have to find interest for only 15 days which will be taken out on par value

INTEREST = $1000 x 7% x 15 / 30

                 = $1000 x .07 x 1/ 2

                 = $35

INVOICE PRICE = INTEREST X \frac{TOTAL \: NUMBER \: OF \: DAYS}{COUPON \: PERIOD}   + Ask price

        =  $35 X 15 / 182

        = $2.884

Now adding this amount in to ask price

$100,125 + $2.884

= $100,127.88  ( INVOICE PRICE)

7 0
2 years ago
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