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DerKrebs [107]
2 years ago
7

Hot Wings, Inc., has an odd dividend policy. The company has just paid a dividend of $10.25 per share and has announced that it

will increase the dividend by $8.25 per share for each of the next four years, and then never pay another dividend. Required: If you require a return of 12 percent on the company’s stock, how much will you pay for a share today?
Business
1 answer:
olasank [31]2 years ago
7 0

Answer:

$56.19

Explanation:

Because Hot Wings' stock only pay dividend in next four years, the stock intrinsic value is sum of these four discounted dividends. Let formulate the calculation as below:

Hot Wings' stock intrinsic value = Dividend in year 1/(1 + Required rate of return) + Dividend in year 2/(1 + Required rate of return)^2 + Dividend in year 3/(1 + Required rate of return)^3 + Dividend in year 4/(1 + Required rate of return)^4

                                                     =  (10.25 + 8.25)/(1 + 12%) + (10.25 + 8.25)/(1 + 12%)^2 + (10.25 + 8.25)/(1 + 12%)^3 + (10.25 + 8.25)/(1 + 12%)^4 = $56.19

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Yakvenalex [24]

Answer:

It is cheaper to make the part in house.

Explanation:

Giving the following information:

Harrison Enterprises currently produces 8,000 units of part B13.

Current unit costs for part B13 are as follows:

Direct materials $12

Direct labor 9

Factory rent 7

Administrative costs 10

General factory overhead (allocated) 7

Total $45

If Harrison decides to buy part B13, 50% of the administrative costs would be avoided.

To calculate whether it is better to make the par in-house or buy, we need to determine which costs are unavoidable.

Unavoidable costs:

Factory rent= 7

Administrative costs= 5

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Total= 17

Now, we can calculate the unitary cost of making the product in-house:

Unitary cost= direct material + direct labor + avoidable administrative costs

Unitary cost= 7 + 5 + 5= $17

It is cheaper to make the part in house.

3 0
2 years ago
Mother & daughter jewelers breaches its lease with longview mall and vacates the premises six months before the end of the t
evablogger [386]

The answer to the question is use reasonable means to find a new tenant to mitigate damages. This particular approach is actually the preferred method when dealing with contract breaches, which is part of the duty to mitigate, applied to the landlord.

In this context, Longview Mall has a duty to find another tenant to ensure that the property does not sit empty for a long period of time (maximum 2 years).

5 0
1 year ago
It is mostly the women between 25 and 54 years of age who watch the lifestyle channels owned by Scripps Networks Interactive, an
omeli [17]

It is mostly the women between 25 and 54 years of age who watch the lifestyle channels owned by Scripps Networks Interactive, and the advertisements run on these channels are essentially aimed at them. These women are the company's <u>Target audience</u>

Explanation:

In the question above the women between the age of 25-54 years are the Target Audience because the interactives and the advertisement  on the Scripps network are aimed at these women's.

Now evaluating the other options

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B)<u>Advertising medium :</u>The medium using which a message is communicated to the targeted audience(like TV,radio,newspaper)

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So we can say that These women are the company's <u>Target audience</u>

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2 years ago
Jitensha Bike Parts was called to testify before the U.S. Congress. The CEO of Jitensha defended the company against an accusati
suter [353]

Answer:

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2 years ago
________ play an important role in efficiently making products available to target markets in the needed varieties and quantitie
avanturin [10]

Answer:

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Explanation:

Intermediaries are individuals or organisations whose main function is to ensure that goods are moved smoothly through the various channels of distribution. They act as a link between the manufacturers and the consumers.

Intermediaries acts as a middleman, they provide feedbacks to the manufacturers on the customer's assessment of the product. They also help in the promotion of goods by employing different advertising strategies inorder to showcase the product to the potential customers.

Hence intermediaries play a crucial role in efficiently making products available to target markets in the required varieties and quantities.

8 0
2 years ago
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