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aliina [53]
2 years ago
14

Symon's Suppers Co. has announced that it will pay a dividend of $4.23 per share one year from today. Additionally, the company

expects to increase its dividend by 4.4 percent annually. The required return on the company's stock is 10.6 percent. What is the current share price?
Business
1 answer:
sweet-ann [11.9K]2 years ago
6 0

Answer:

$68.23

Explanation:

In this question, we apply the dividend growth rate model which is shown below:

The computation of the current share price is shown below:

= (Current year dividend) ÷ (Rate of return on company stock - growth rate)

= ($4.23) ÷ (10.6% - 4.4%)

= ($4.23) ÷ (6.2%)

= $68.23

We simply find out the ratio between the current year dividend per share and difference between the rate of return and the growth rate

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Donny, of Donny's Doughnuts, bakes and sells 100 dozen doughnuts a day using one mixer and one fryer. His rival, Sunshine, of Su
Svetlanka [38]

Answer:

Which shop will benefit the most from its expansion?

  • B. Donny, because his workers currently have less available capital to work with

The law of marginal returns applies here, that is why Sunshine donuts didn't produce twice as many by using more machines

How much should Donny realistically expect his production to increase with the new equipment?

  • A. about 80 dozen

Similar to the additional production that Sunshine had in the past.

How much should Sunshine realistically expect her production to increase with the new equipment?

  • A. about 50 dozen

Maybe even a little more than 50 dozen, but definitely less than 80 or 100.

7 0
1 year ago
Lie Around Furniture manufactures two​ products: Couches and Beds. The following data are​ available: Couches Beds Sales price V
Natali5045456 [20]

Answer:

the company should produce 5,200 / 0.5 = 10,400 beds, resulting in a gross profit of $3,692,000

Explanation:

The numbers are missing, so i looked them up:

                             sales price          variable costs       machine hours

Couches                    $550                    $350                    0.333

Beds                          $750                    $395                     0.5

total machine hours = 5,200

the constraint here is machine hours, so we must determine the contribution margin per machine hour:

  • couches = $200 / 0.333 = $600
  • beds = $355 / 0.5 = $710

since the contribution margin per machine hour is higher for beds, then the company should produce 5,200 / 0.5 = 10,400 beds, resulting in a gross profit of $3,692,000

4 0
2 years ago
A house in the neighborhood has been well maintained. The seller has made sure that all the electrical systems are working to co
Greeley [361]

Answer:

utility power

Explanation:

In simple words, the location of the house has been said to be in a prominent region, it gives the house a competitive advantage over other units, also the house has been maintained and restructured bu the seller so that it looks more good and healthy.

The subject unit has been restructured in a way that it satisfied all the needs of the buyer, thus, it brings a lot of utility power to the market in respect of its value.

6 0
2 years ago
Many homes are decorated in spring colors because these colors are deemed to be uplifting; however, most department stores do no
Veronika [31]

Answer:

Time utility

Explanation:

Organizations try to understand the demands of the consumers before before important decisions. From the questions, it is clear that the department stores over time have understood when customers prefers not to stock spring colored items because during the spring and fall, brown and green items are mostly sort after. Thus time utility which entails making available certain products to consumers depending on their needs, weather condition, or seasons is the most likely answer to this question.

3 0
2 years ago
If the buyer perceives a buyer-supplier relationship is in the desirable region on the purchaser-supplier satisfaction matrix, b
vfiekz [6]

Answer:

The correct answer is the option D: share information to find a mutual solution.

Explanation:

To begin with, the concept known as "Supplier Satisfaction" has long been a dead term for many companies in all the industries, however very recently the acquisition of this method has been implemeted in order to increase the benefits that it brings to understand better the relationship with the costumer. Moreover, the model itself seeks for the proper creation of a high quality relationship established in communication between the costumer and the supplier who is able to make a confortable sale and create and environment suitable for the buyer. That is why that the correct action will be to share information in order to find a mutual solution in the case where the situation is in that desirable region of the matrix.

4 0
2 years ago
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