Laurel Enterprises expects earnings next year of $3.81 per share and has a 30% retention rate, which it plans to keep constant. Its equity cost of capital is 11%, which is also its expected retum on new investment. Its earnings are expected to grow forever at a rate of 3.3% per year. If its next dividend is due in one year, what do you estimate the firm's current stock price to be? The current stock price will be $
Answers
Given: Earnings per share next year = 3.81Retention ratio = 30%Equity cost of capital = expected return on new investment = 11%Earnings growth rate = 3.3% per year Dividend due in one year .
The Gordon growth model is given as: P = D1 / (Ke - g)where, P = current stock priced 1 = next year's dividend Ke = equity cost of capital g = earnings growth rate We can find out the value of D1 as:D1 = Earnings per share * Retention ratio\(D1 = 3.81 * 0.30D1 = $1.143Now we can find out the value of P as:P = D1 / (Ke - g)P = 1.143 / (0.11 - 0.033)P = $12.77\)
Therefore, the current stock price of the firm is\($12.77\).
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Related Questions
hich occurs during digestion?
The mouth only allows for physical digestion.
The mouth only allows for chemical digestion.
Chemical digestion prepares the food for physical digestion.
Physical digestion prepares the food for chemical digestion.
Answers
Answer:
Digestion can be either chemical or physical - physical digestion occurs when you chew food in your mouth (mastication) or chemical when it is broken down in the stomach (via HCl), just to give a few examples. There are many examples of both chemical and physical digestion.
Explanation:
Describe two things you can do to make sure you are using another person's work fairly.
Answers
Answer:
cite the source and describe how you obtained it
almonds are a crop that grows on trees. farmers do not need to replant trees every year to produce a crop of almonds. it takes at least five years after planting for trees to bear fruit. several factors such as weather, disease, and long term projections about price impact the supply of almonds available. barley is a grass that must be planted each year to produce a crop. the growing season is short, about three to four months. several factors influence farmers' decisions to plant barley each year, including price, weather, and disease.
Answers
Almonds are a crop that grows on trees and takes several years to bear fruit. A. Almonds have more inelastic supply in the short run because little can be done to change production in the short run.
What is supply?Supply is the availability of goods or commodity that is available to meet the demand, to be sold and to be consumed by the ultimate consumer.
The goods pass through a list of channels to the ultimate consumer, the economists regularize the supply to meet the demand of the specific commodity.
On the other hand demand is the want that is developed at the consumer end and this demand needs to be met for the economy to sustain, if the demand is not met the consumer will consume imported goods.
Almond is inelastic as the production or the supply is less in the short run as it takes at least five years for the plant of almond to bear the fruit.
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Missing options of the question are
Based on this information. Which of the followings are true?
a. Almonds have a more inelastic supply in the short run because little can be done to change production in the short run.
b. It is impossible to infer anything about the price elasticity of supply for these two crops.
c. Barley has a more inelastic supply in the short run because barley is more dependent on price in the short run.
d. The crops have the same price elasticity of supply because they are both agricultural commodities.
if you were a businessman,how would you handle home trade?
Answers
Answer:
1+1>2 effective and efficient
Consider the market for fish. Demand is given by the equation P=200−Q and Supply by P=2*Q. What is the market equilibrium Price and Quantity? Please depict this situation graphically, showing Consumer and Producer Surplus. What are Consumer Surplus, Producer Surplus and Total Surplus in dollars
Answers
The market equilibrium price is approximately $133.33 and the equilibrium quantity is approximately 66.67.
To depict this situation graphically, we can plot the demand and supply curves on a graph. The x-axis represents quantity (Q), and the y-axis represents price (P). Here is a graphical representation:
```
Price (P)
|
200 | Demand
| .
| .
| .
| .
| .
| .
| .
133.33|----------------- Equilibrium Price (P)
| .
| .
| .
|.
0 |___________________
0 66.67 Quantity (Q)
```
Consumer surplus represents the difference between the price consumers are willing to pay and the equilibrium price. It is the area above the demand curve and below the equilibrium price. In this case, it can be calculated as:
To find the market equilibrium price and quantity, we need to set the demand equal to the supply and solve for Q:
Demand: P = 200 - Q
Supply: P = 2Q
Setting them equal:
200 - Q = 2Q
Combining like terms:
3Q = 200
Solving for Q:
Q = 200/3 ≈ 66.67
To find the equilibrium price, we can substitute the value of Q back into either the demand or supply equation. Let's use the supply equation:
P = 2Q = 2(66.67) ≈ 133.33
Consumer Surplus = (1/2) * (200 - 133.33) * 66.67
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compute sales based on the following information. sales $ ? variable costs 30,000 fixed costs 5,000 target income $ 65,000
Answers
Based on the given information, the amount of sales equal to $30,000.
What is the meaning of sales?In accounting, the term "sales" refers to the volume of goods and services sold by a business during a reporting period or the company's revenue earned from the sales of products or services.
The amount of sales will be computed by:
= Target income - (variable costs + fixed costs)
= $65,000 - ($30,000 + $5,000)
= $65,000 - $35,000
= $30,000
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Click or tap Quizmo, the InQuizitive alien, in the upper left-hand corner. See what happens, and complete the following sentence. Clicking or tapping Quizmo takes you to the "Take a ________" screen.
Answers
Answer:
test
Explanation:
The given quiz has displayed the picture of a African tiger. The test requires to identify the animal with the given picture. The African tiger are slightly different from the other tigers. They have unique facial cuts and their constant anger is known for their nature.
What part of speech is the underlined word? in the back of my mind, i vaguely remember talking to ms. wilson about the need for new books for our library.
Answers
The part of speech the underlined word is preposition.
What is preposition and examples?
A preposition is a word or group of words used before a noun, pronoun, or noun phrase to convey direction, time, place, location, spatial relationships, or to introduce an item. The words "in," "at," "on," "of," and "to" are examples of prepositions.
What distinguishes a preposition?
A combination of words that additionally includes another word is known as a prepositional phrase. A preposition begins a prepositional phrase, which finishes with a noun or pronoun. Prepositional terms include "in our house," "between friends," and "since the war," for instance.
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the weighted moving average forecasting model uses a weighting scheme to modify the effects of individual data points. this is its major advantage over the simple moving average model. (True or False)
Answers
The correct answer is True. The weighted moving average forecasting model uses a weighting scheme to modify the effects of individual data points. this is its major advantage over the simple moving average model is True.
The weighted moving average forecasting model assigns different weights to each data point in the moving average window, giving more importance to recent data points while still considering the older ones.
This allows the model to respond more quickly to changes in the data, which is a major advantage over the simple moving average model. In the simple moving average model, all data points within the moving average window are given equal weight, making it less sensitive to recent changes.
The statement is true because the weighted moving average forecasting model's major advantage over the simple moving average model is its ability to modify the effects of individual data points using a weighting scheme.
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technological advances allow smaller companies to compete with larger companies. group of answer choices true false
Answers
True, Technological advances allow smaller companies to compete with larger companies.
What is company?
A company is a legal entity created by a group of people to conduct and manage a business enterprise, whether it be commercial or industrial. Depending on the corporate law of its jurisdiction, a company may be set up in a variety of ways for tax and financial liability reasons. The type of business structure a company chooses, such as a partnership, sole proprietorship, or corporation, will typically depend on the industry it operates in. The ownership structure of the business is also indicated by these structures. Additionally, they can tell private from public companies. Both have different ownership arrangements, laws, and rules regarding financial reporting.
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Explain the role of the Board of
Directors in a public company?
Provide FOUR points.
Answers
Answer:
A board of directors is essentially a panel of people who are elected to represent shareholders. ... The board is responsible for protecting shareholders' interests, establishing policies for management, oversight of the corporation.
Hope it helps a bit.
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Answers
Is additional paid in capital asset?
Answers
Additional paid-in capital (APIC) is not considered an asset in accounting. Instead, APIC is a component of shareholders' equity, which represents the portion of a company's assets that are owned by shareholders.
APIC is created when a company issues stock and sells it for more than the stock's par value. The excess amount received from the sale of the stock is recorded as APIC in the company's balance sheet. APIC represents the amount of money that shareholders have contributed to the company in excess of the stock's stated value.
While APIC is not an asset, it is an important component of a company's financial statements. APIC can be used to finance a company's operations, make investments, and pay dividends to shareholders.
Investors and analysts may also use APIC to evaluate a company's financial health, as a high amount of APIC may indicate that the company has a strong financial position and access to capital for future growth.
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NEED HELP ASAP ON A TIMER
Which of the following factors is a benefit of international trade over
domestic trade?
A. More limited ability to move resources due to tariffs
B. Less consumer choice
C. Lower cost of production
D. Higher political or military influence on the market
Answers
Answer:
c. lower cost of production on A P E X
Explanation:
What information does a lead contain in a news story?
Answers
Answer:
1st one
Explanation:
Your conceptions of correct or incorrect behavior are called your
A. values
B. intents
C. actions
Datudes
Answers
Answer:
values
Explanation:
am not sure of the answer cause none of the options seem to answer the question given
Answer:
values
Explanation:
something that's important to you
ECONOMICS EVERFI QUESTION When comparison shopping, all of these hint at a good deal EXCEPT_____________________. lower-priced models offer more features. there is a coupon available for additional percentage off the price. the sale price is the cheapest available. there are more positive customer reviews than negative reviews.
Answers
Answer:
the sale price is the cheapest available.
Explanation:
Comparison shopping is the practice or nature of shopping where one compares the price of an item different sources which the individual wishes to purchase. This is done in advance before the actual purchase or shopping. It is done to achieve the best deal in price.
Comparison shopping is ideal or beneficial when buying items which can be easily researched through some advertisements. When doing comparison shopping it is not a good deal to always go for the lowest price available.
Thus, it is not considered a good deal when you go for the sale price that is the cheapest available.
The sentence which best complete the phrase is lower-priced models offer more features (option A)
When we want to buy an object it is advisable to find out its value in different places to find the cheapest one. It is also advisable to look for discount coupons or promotions to save us a little money.
Another activity that we can carry out is to consult on the internet the review of other buyers about the product to make sure that its operation is optimal.
Generally, the cheapest models are the ones that offer the fewest features. For example, if I want to buy a bicycle, its price can vary based on different characteristics such as the material of the frame (lighter is worth more) or the number of speeds (more speeds are worth more).
According to the above, the correct answer is option A. because it mentions an aspect related to low-value objects.
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A de jure corporation is one that is formed to accomplish a single purpose within a limited time. True False
Answers
It is false that a de jure corporation is one that is formed to accomplish a single purpose within a limited time.
To find out why a de jure corporation is not limited to a single purpose, we need to know more.
What is de jure corporation?It is when a coporation has fulfiled the required mandate within the ambit of the law to become a corporation.For a certified de jur coporation, they can issue stocks and also carry out daily activities.Hence, we can conclude that a de jure corporation is not one that is formed to accomplish a single purpose within a limited time.
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if the authorized sources do not provide sufficient guidance, you should:
Answers
If the authorized authority does not provide sufficient guidance, you should refer to other sources for the assistance that you need.
Other officials that you may need for assistance may be the security manager and the government contracting authority.
The two authorized methods that are used to communicate the classification decisions are the
Security classification guide Well marked source documentRead more on https://brainly.com/question/25769159?referrer=searchResults
Stocks and bonds are different in which primary way?
Answers
Answer:
Explanation:
One major difference between the bond and stock markets is that the stock market has central places or exchanges where stocks are bought and sold. The other key difference between the stock and bond market is the risk involved in investing in each
a cash equivalent is: multiple choice an investment readily convertible to a known amount of cash and sufficiently close to maturity so its market value is unaffected by interest rate changes. close to its maturity date but its market value may still be affected by interest rate changes. an account payable due within 5 months. is not considered highly liquid. one example of a noncash investing and financing activity.
Answers
A cash equivalent is an investment that is readily convertible to a known amount of cash and is sufficiently close to maturity so its market value is unaffected by interest rate changes.
A cash equivalent refers to an investment that has characteristics similar to cash. It is highly liquid and can be easily converted into a known amount of cash with minimal risk of value loss.
The defining feature of a cash equivalent is that it is close to maturity, meaning it has a short remaining time until its maturity date. This proximity to maturity ensures that the market value of the investment is relatively stable and not significantly impacted by changes in interest rates.
Cash equivalents are considered to be highly liquid assets because they can be quickly and easily converted into cash when needed. They are often used by businesses and investors as a means to temporarily park funds or generate short-term returns with low risk.
Common examples of cash equivalents include Treasury bills, certificates of deposit (CDs), and money market funds. Unlike cash equivalents, other investments that are close to their maturity date may still be subject to changes in market value due to fluctuations in interest rates.
Additionally, accounts payable due within 5 months, although representing a liability, do not fall under the definition of a cash equivalent. Cash equivalents are typically categorized as part of a company's cash and cash equivalents on the balance sheet, reflecting their high liquidity and low risk nature.
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For the following independent cases, determine whether economic income is present and, if so, whether it must be included in gross income (i.e., is it realized and recognized for tax purposes?).
a) Asia owns stock that is listed on the New York Stock Exchange, and this year the stock increased in value by $20,000.
b) Ben sold stock for $10,000 and paid a sales commission of $250. Ben purchased the stock several years ago for $4,000.
c) Bessie is a partner in SULU Enterprises LLC. This year SULU reported that Bessie's share of rental income was $2,700 and her share of municipal interest was $750.
Answers
In the first case, Ben sold stock for $10,000 and paid a sales commission of $250.
This is considered an economic income as the stock was sold at a higher price than it was purchased, thus Ben has earned a profit of $5,750. This economic income must be included in gross income as it is both realized and recognized for tax purposes.
In the second case, Bessie is a partner in SULU Enterprises LLC and her share of rental income and municipal interest was reported to be $2,700 and $750 respectively. These economic incomes must be included in Bessie's gross income, as they are both realized and recognized for tax purposes.
In summary, economic income is present in both independent cases and it must be included in gross income, as it is both realized and recognized for tax purposes.
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financial statements show financial amounts in side-by-side columns on a single statement.
True
False
Answers
Financial statements show financial amounts in side-by-side columns on a single statement.
The statement is False as the correct answer is Comparative financial statements.
What do you mean by comparative financial statements?
A comparative statement is a document that contrasts a certain financial statement with statements from earlier periods. Investors may spot trends, follow a company's development, and assess how it stacks up against competitors thanks to the side-by-side presentation of previous financial data with the most recent numbers in columns.Although comparative financial statements are not necessary, SEC rules stipulate that the majority of registrants must submit two years' worth of comparisons for each statement, with the exception of the balance sheet, which only needs one.To know more about Financial statements here
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The cost for purchasing and installation of a molding machine is $90,000. It is in the seven-year GDS property class and is expected to be kept in service for eight years. The salvage value of the machine is $10,000 at the end of year 8. The net annual value added (i. E. , revenues less expenses) that can be attributed to this machine is constant over eight years and amounts to $15,000. What is the tax at the end of year four if the tax rate is 25%
Answers
tax at the end of year four is $5,280.
To calculate the tax at the end of year four, we need to first find the book value of the molding machine at that point in time.
Since the machine is in the seven-year GDS property class and is expected to be kept in service for eight years, the annual depreciation rate is 1/7 = 0.143.
So, after four years, the accumulated depreciation will be 0.143 x $90,000 x 4 = $51,120.
Therefore, the book value of the machine at the end of year four will be $90,000 - $51,120 = $38,880.
The net annual value added to this machine is constant over eight years and amounts to $15,000.
So, the total net value added after four years will be $15,000 x 4 = $60,000.
To calculate the taxable income, we subtract the book value from the net value added:
Taxable income = $60,000 - $38,880 = $21,120
Finally, we apply the tax rate of 25% to find the tax:
Tax = $21,120 x 0.25 = $5,280
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positive outcomes of entrepreneurship in marketplace
Answers
Answer: New and improved offerings, products or technologies from entrepreneurs enable new markets to be developed and new wealth created. Additionally, the cascading effect of increased employment and higher earnings contribute to better national income in form of higher tax revenue and higher government spending. Entrepreneurship and Innovation minors will be able to sell themselves and their ideas. Students master oral and visual presentation skills and establish a foundation of confidence in the skills necessary to cause others to act. Entrepreneurship and Innovation minors will be able to find problems worth solving. Economic growth. The bottom line of vibrant entrepreneurialism is that it creates wealth: for the entrepreneur, for the people that are employed as a result and for the local economy. ... Entrepreneurs boost economic growth by introducing innovative technologies, products, and services. Increased competition from entrepreneurs challenges existing firms to become more competitive. Entrepreneurs provide new job opportunities in the short and long term.
Hope this helps....... Stay safe and have a Merry Christmas!!!!!!! :D
A business would like to increase the overall demand for its newest product.
According to the law of demand, what should the business do?
A. Decrease the product's supply
B. Increase the product's price
c. Decrease the product's price
D. Increase the product's supply
Answers
If the demand for the new product increases so here the business prefers option c. Decrease the product's price
Information regarding the law of demand:The law of demand shows an inverse relationship between the price and the quantity demanded. If the price of one product is increased so the demand should decrease. And, if the price of the one product should be decreased so the demand should increase.
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Answer:
B
Explanation:
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Answers
Answer:
thanks lol
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If the demand for softballs increases, one could expect the demand for leather to increase. This is attributable to the a. opportunity cost of producing softballs b. reduction in the cost of production of softballs. c. derived demand for an input d. marginal productivity principle.
Answers
If the demand for softballs increases, one could expect the demand for leather to increase. This is attributable to the c. derived demand for an input.
The demand for leather in this context is considered a derived demand because it is not driven by the direct demand for leather itself but rather by the demand for the final product that uses leather as an input, which in this case is softballs. The increase in demand for softballs leads to an increase in the demand for the inputs used to produce them, including leather. As the demand for softballs rises, manufacturers and producers of softballs will require more leather to meet the increased production needs. This increased demand for leather is derived from the demand for softballs, as leather is a key component in the manufacturing process.
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The term relevant range as used in cost accounting means the range over which: Group of answer choices Costs may fluctuate. Relevant costs are incurred. Production may vary. Cost relationships are approximately linear.
Answers
Option D. The term relevant range is the range over which Cost relationships are approximately linear.
What is relevant range?This is the term that is used to refer to the assumption that the cost relationships are valid.
What this means is that the existing relationship between cost and any activity are linear, in a straight line.
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Which of the following can an interviewer legally ask you about at a job interview?
A.
Your marital status
B.
Whether or not you have medical conditions
C.
Whether or not you’ve been convicted of a crime
D.
Your age