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hichkok12 [17]
2 years ago
13

Bon Chance, Inc., has an odd dividend policy. The company has just paid a dividend of $3 per share and has announced that it wil

l increase the dividend by $5 per share for each of the next four years, and then never pay another dividend. If you require a return of 9.7 percent on the company’s stock, how much will you pay for a share today
Business
1 answer:
Anni [7]2 years ago
3 0

Answer:

If you require a return of 9.7 percent on the company’s stock, you will pay $47.61 for a share today .

Explanation:

Price today = Present Value of Dividends

Present Value of Dividends :  

Year                Dividend             Discounting Factor(9.7%)

0                 3.0000  

1                    8.00                 0.9115770282588880

2                    13.00                 0.8309726784493050

3                     18.00                  0.7574956047851460

4                     23.00                  0.6905155923292130  

year                                     Present Value(Dividend* Discounting factor)

0

1                                                                         7.2926162260711000

2                                                                        10.8026448198410000

3                                                                        13.6349208861326000

4                                                                        15.8818586235719000

Present Value of Dividends                            47.612040555616600

Therefore, If you require a return of 9.7 percent on the company’s stock, you will pay $47.61 for a share today .

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Willow Springs produces various wooden bookcases, tables, storage units, and chairs. Which of the following would be included in
DENIUS [597]

Answer: The correct answer is "e. Transfer of chairs from the assembly line to the staining facility and storage of completed bookcases in inventory. ".

Explanation: The statement "e. Transfer of chairs from the assembly line to the staining facility and storage of completed bookcases in inventory. " would be included in a listing of the company's non-value-added activities.

An activity is everything that consumes resources. The resources consumed can be tangible (materials, time, money) and intangibles (mood, effort, illusion).

Value is what someone appreciates. In economic activities we refer to value as "what someone is willing to pay" for your product. That someone would be the customer. If the Client does not pay it, it is because he does not appreciate it, it does not give it value.

<u>In this case, the activities that do not clearly generate value are "transfer" and "storage". Although there are activities that do not generate value but are necessary such as transfer, storage could be eliminated or optimized so that it is not an activity that limits production or increases costs.</u>

6 0
2 years ago
The Benson Bearing Company sells Textron, Inc. a quantity of baseball bats that were stored in an independent warehouse at the t
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Answer:

at the time it receives a negotiable warehouse receipt for the bats.

Explanation:

Benson Bearing Company is selling bats to Textron inc. The bats are stored at an independent warehouse not controlled by Benson Company.

Of the contract states that Textron will pick up the bats at the warehouse, the risk of loss passes to Textron when it recieved a negotiable warehouse reciept for the bats.

This is because the warehouse is not controlled by Benson Company and issuing a warehouse reciept is equivalent to delivering the goods to Textron.

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2 years ago
To move forward in an automatic transmission vehicle, shift to _____. A. Park B. Reverse C. Neutral D. Drive
EleoNora [17]

Answer:

D stands for drive.

Explanation:

In automatic transmission vehicles, the letter D represents all forward-moving gears.  When the engine is running, and the automatic transmission is activated with D, accelerating the car will make it move forward.

Some vehicles will have a series of numbers after the D. The may be labeled ad D1, D2, D3 in that order. These are manuals setting for the forward gear operations. They help the vehicle navigate different terrain as  follows

  • D1:  Suitable for difficult terrains like sand and mud.
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For vehicles with only D, the single D combines all the above functions.

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2 years ago
Read 2 more answers
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Arisa [49]

Answer:<em> Option (b) is correct.</em>

From the given options , the following is an example of shadowing:<em> Three young interns practicing under the guidance of an experienced surgeon. </em>

<em>Shadowing here refers to on-the-job learning program. It also includes development program related to career and leadership. This also involves working with individuals who might have different work, or might have to teach the individual about aspects related to the work, business or competencies. </em>

6 0
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marta [7]

Answer:

This question is business question so I will answer it from business perspective. The least that I can do is offer her a one year package with an advance of $50. The monthly installment along with the interest that she will pay would be:

Monthly Installment including interest = (Amount Due/12months) + (Outstanding Amount * Interest Rate) ....Eq1

So I assume the interest rate is 5% and as we know the outstanding amount is $150.

By putting the values, we have:

Monthly Installment including interest = ($150/12months) + ($150 * 5%)

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Now the outstanding amount for the second month = $150 - $12.5 = $137.5

Now we will use this new outstanding amount to calculate the monthly installments including the interest by putting the values in the equation 1. Similarly for the next coming months the installments would be calculated.

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