answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
DerKrebs [107]
1 year 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]1 year 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

You might be interested in
QUESTION 8 of 10: You are counting your competitors in town. This number is a(n):
Sindrei [870]

Answer:B; Integer

Explanation:Integer is like a whole number(1,2,3,4, etc) it cannot be decimals. Since there can’t be 2.5 people, the answer is B- Integers

5 0
1 year ago
The Nintendo Company manufactures electronic video consoles and game cartridges. Nintendo provides game-design firms with techni
3241004551 [841]

Answer:

Licensing

Explanation:

Licensing can be defined as a business agreement in which a company gives permission to another company to produce it product by issuing a license in exchange for a fee called royalty.

The license is the legal agreement between the two firms.

The firm that issues the license to another firm is called the LICENSOR

The firm that receives the license is called the LICENSEE.

Nintendo company is the licensor who gives permission/license to the game-design firms to manufacture it product.

The game-design firms is the licensee who receives the license/permission to produce another firm's product.

The game-design firms pay royalty to Nintendo company for giving it a license.

8 0
1 year ago
Read 2 more answers
Jill took $50,000 that she had in savings and started her own business. If left in investments she would have earned $5,000 this
vova2212 [387]

Answer:  Economic cost = $175,000

Accounting cost = $100,000

Explanation: The difference between economic cost and accounting coast is economic cost takes into consideration the next best alternative foregone, that is, opportunity cost whereas accounting cost only sums cost incurred. In the given case the interest on savings and salary of job is the opportunity cost of Jill.

Therefore,

Economic cost = $5000 + $70,000 + $80,000 + $40,000 - $20,000=$175,000

Accounting cost =  $80,000 +  $20,000 =  $100,000

7 0
2 years ago
Many tire centers and new car dealers offer to fill tires with nitrogen instead of compressed air, often at a significantly incr
STatiana [176]

Answer and Explanation:

a) the advantage if using Nitrogen is that pure nitrogen does not leak out of tires as fast as oxygen do. Molecules of Nitrogen are much larger that those of Oxygen so nitrogen filled tires will remain inflates longer than air filled tires.

b) it is consistent with the ideal gas law (PV= nRT). Volume is inversely proportional to pressure and directly proportional to the temperature which mean that every 10 degree change in temperature will result in 1 psi change in tire-inflation pressure.

c) Yes there is another chemical reason. Air contains moisture which can build up within and corrode the wheels and tire pressure monitoring system resulting in tire rot from within but Nitrogen gas is much drier and allows a more steady pressure inside the tire.

d) No I will not pay extra for nitrogen filled tires because there's no huge difference between nitrogen and air filled tires. Nitrogen contains only about 93-95% nitrogen and the rest air ,while ordinary air-filled tire contains 78% nitrogen and the rest air. Besides nitrogen gas do not protect nor repairs faulty tires, you still have to check your tires from time to time and ordinary air is much cheaper than nitrogen and in some regions free. So I think its just a marketing strategy and do not have much use.

5 0
2 years ago
Forge Company wants to purchase a new cutting machine for its sewing plant. The investment is expected to generate annual cash i
Katyanochek1 [597]

Answer:

$380,280

Explanation:

Calculation for the maximum dollar amount

Using this formula

Maximum dollar amount =Annual cash inflows*Present value Annual amount

Where

Annual cash inflows=$120,000

PV Annual 4 (10%)=3.169

Let plug in the formula

Maximum dollar amount=$120,000*3.169

Maximum dollar amount=$380,280

Therefore the maximum dollar amount the company would be willing to spend for the machine will be $380,280

5 0
2 years ago
Other questions:
  • You might have heard your grandmother say, "when i was your age, candy bars cost a nickel." like candy bars, the price of fast f
    8·1 answer
  • In its first year of operations, Grace Company reports the following: Earned revenues of $60,000 ($52,000 cash received from cus
    6·1 answer
  • EA4.
    9·1 answer
  • Charlotte, the manager of an electronics store in Ohio, gives her staff the authority to resolve customer complaints. She lets t
    6·1 answer
  • Suppose a piece of plant equipment that PepsiCo put into service on January 1, 2014 at a total cost of $300,000 with an expected
    9·1 answer
  • Presented below is a combined single-step income and retained earnings statement for Hardrock Mining Co. for 2017.
    12·1 answer
  • Which examples demonstrate tasks commonly performed in Printing Technology jobs? Check all that apply.
    8·2 answers
  • Your catering business sells luncheons and dinners. Luncheons are $1,000 each, and dinners are $2,000 each. You sold 300 meals i
    8·1 answer
  • The country of Lessidinia has a tax system identical to that of the United States. Suppose someone in Lessidinia bought a parcel
    7·1 answer
  • Freytag Corporation's variable overhead is applied on the basis of direct labor-hours. The company has established the following
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!