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nadya68 [22]
2 years ago
12

Keidis Industries will pay a dividend of $3.55, $4.65, and $5.85 per share for each of the next three years, respectively. In fo

ur years, you believe that the company will be acquired for $53.00 per share. The return on similar stocks is 9.9 percent. What is the current stock price?
Multiple Choice

$61.72

$53.63

$51.10

$47.45

$47.82
Business
1 answer:
german2 years ago
8 0

Answer:

price = $47.82

Explanation:

Find the present value of each dividend at the required rate of return and sum them up to get the current price;

PV = FV /(1+r)^n

PV(D1) = 3.55/ (1.099^1) = 3.2302

PV(D2) = 4.65/ (1.099^2) = 3.8500

PV(D3) = 5.85 / (1.099^3) = 4.4072

PV(Price at t=4) = 53 / (1.099^4) = 36.3316

Price = 3.2302+2.9392+4.4072+36.3316

= 47.81897

Therefore, price = $47.82

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Consider two cities, City A and City B, which are entirely identical except that Uber operates in City A, but not in City B. Con
Pepsi [2]

Answer:

Less

Explanation:

In the given scenario taxi prices will go up less in City A than City B. This is because in City A we have both Uber and taxis, and there is substitution. If customers don't have taxis they will commute by Uber. So demand for taxis in City A will be elastic. An increase in price will result in a large decrease in demand. Taxi drivers will cautiously increase prices here.

In City B the only option for commuters is the taxi, so the demand will be inelastic. As price increases there is relatively little change in quantity demanded. Taxi drivers can increase prices more here without losing customers.

5 0
2 years ago
Roca, Inc., manufactures and sells two products: Product M6 and Product X7. The company has an activity-based costing system wit
Nikolay [14]

Answer:

$369,879

Explanation:

The computation of the total overhead to be applied is shown below:

<u>                                                                                    Product X7</u>

<u>Activity Cost  Estimated  Expected  Activity  Expected  Overhead </u>

<u>Pool               Overhead   Total         Rate     Activity       applied </u>

<u>                Cost            Activity </u>

Labor

-related          $152,100      7,800     $19.50     4800     $93,600

Production

orders        $63,035      700    $90.05     300      $27,015

Order size      $505,452    7300      $69.24     3600       $249,264

Total                $720,587                                                    $369,879

6 0
2 years ago
Unhealthy company cultures typically have such characteristics as:__________.A) tight budget controls,overly strict enforcement
Semenov [28]

Answer:

C) a politicized internal environment,hostility to change and an aversion to looking outside the company for best practices,new managerial approaches,and innovative ideas.

Explanation:

Unhealthy company cultures typically have such characteristics as <em>a politicized internal environment,hostility to change and an aversion to looking outside the company for best practices,new managerial approaches,and innovative ideas.</em>

4 0
2 years ago
Standlar Company makes and sells wireless speakers. The price of the standard model is $360 and its variable expenses are $210.
Vladimir79 [104]

Total contribution margin = $3,000, standard models sold at break even=800, deluxe models sold at break even=400, superior models sold at break even=100

<u>Explanation:</u>

1.Using sales mix stated in the fact from Figure to form a package what is the total contribution margin?

total contribution margin  =($150 multiply 8) plus ($200 multiply 4) plus ($1,000 multiply 1)  = $3,000

2.Refer to Figure, What is the number of standard models sold at break even.

break even units  =Fixed cost divide contribution margin per package

= $300,000 divide $3000  =100 package  standard models sold at break even=100 package multiply 8 = 800

2.Refer to Figure, What is the number of deluxe models sold at break even.

break even units

=Fixed cost divide contribution margin per package  = $300,000 divide $3000

=100 package  deluxe models sold at break even = 100 package multiply 4

6 0
2 years ago
According to the video, Industrial Production Managers need which qualities? Check all that apply.
zepelin [54]

Answer: ability to handle stress

desire for responsibility

Explanation:

Industrial production managers are the individuals who oversee the daily operations of the plants in an organization.

They are responsible for the coordination, and the planning of the activities that are used in the creation of different goods.

According to the video, the qualities needed by Industrial Production Managers include the ability to handle stress and the desire for responsibility.

7 0
2 years ago
Read 2 more answers
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