mz technologies’ dividend growth is expected to decline gradually. for the next four years, the growth is expected to be 20%. in years 5,6 and 7 it is expected to grow at 16%, 12% and 8%. during year 8 and beyond, dividends are expected to grow at 5% for perpetuity. assume the last dividend paid was $1 (a moment ago) and the required rate of return is 10%. what is the current price?

Answers

Answer 1
Answer:

Answer:

$9.00

Explanation:

Note: See the attached file for the calculation of PV of year 1 to 7 dividends.

Price at year 7 = year 8 dividend / (Rate of return - Perpetual growth rate) =  (0.5747245056 * 1.05) / (10% - 5%) = $12.0692146176

PV of price at year 7 = $12.0692146176 / (1.10)^7 = $6.19341546169015

Current price = Sum of PV of years 1 to 7 dividends + PV of price at year 7 = $2.81096656749202 + $6.19341546169015 = $9.00


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A stock currently sells for $65. The dividend yield is 3.5 percent and the dividend growth rate is 4.8 percent. What is the amount of the dividend to be paid in one year
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If your company’s product is mobile phones, do you think it would make better strategic sense to employ a multidomestic strategy, a transnational strategy, or a global strategy? Multiple Choice A transnational strategy would be appropriate since the same strategic theme could be employed, but country-to-country customization is necessary to accommodate consumer preferences in mobile phone features. A global strategy makes best strategic sense since country-to-country customization to fit local market conditions is necessary. A global strategy would be appropriate since most mobile phones are constructed to work globally and buyer needs across the world are relatively universal. A multidomestic strategy is called for since mobile phone features must be tailored to the specific market conditions and buyer preferences in each country market. A transnational strategy would make better strategic sense since it would be difficult to employ essentially the same strategic theme in all country markets.

The economic way of thinking stresses that good intentions lead to sound policy." How would you evaluate this statement? Check all that apply a. The statement is false because a policy motivated by good intentions may have unintended negative consequences. b. The statement is true because any policy that is backed by good intentions will always lead to beneficial outcomes for all involved c. The statement is true because only policies that have no unintended consequences are enacted by the government d. The statement is false because sound economic reasoning is required to anticipate unintended consequences of policies that are motivated by good intentions.

Answers

Answer:

a. The statement is false because a policy motivated by good intentions may have unintended negative consequences.

d. The statement is false because sound economic reasoning is required to anticipate unintended consequences of policies that are motivated by good intentions.

Explanation:

It is important to have good intentions when creating policies but a sound policy requires more than just good intentions.

To create a sound policy, sound economic principles and reasoning must be employed. This is important to predict and tackle unintended negative consequences that may arise, irrespective of how good the intentions were in creating the policies.

Final answer:

Merely having good intentions does not guarantee sound policy, particularly in economics. Sound economic reasoning is needed to anticipate possible consequences. Thus, the claim that good intentions lead to sound policy in economics is not entirely accurate.

Explanation:

The statement 'The economic way of thinking stresses that good intentions lead to sound policy' is not entirely valid. Merely having good intentions is not enough to ensure a sound policy, especially in an economic context. Economic reasoning is needed to ascertain the possible implications, both positive and negative, of a policy. As such, the elements a. and d. of the given options are correct:

  • The statement is false because a policy motivated by good intentions may have unintended negative consequences.
  • The statement is false because sound economic reasoning is required to anticipate unintended consequences of policies that are motivated by good intentions.

Learn more about Economic Policy here:

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Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: Sales $ 1,556,000 Variable expenses 591,640 Contribution margin 964,360 Fixed expenses 1,061,000 Net operating income (loss) $ (96,640) In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Division East Central West Sales $ 386,000 $ 600,000 $ 570,000 Variable expenses as a percentage of sales 44 % 38 % 34 % Traceable fixed expenses $ 297,000 $ 331,000 $ 208,000 Required: 1. Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $27,000 based on the belief that it would increase that division's sales by 17%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented

Answers

Answer:

1. Image 1

2a. The company's net operating income decreases by $156,326

2b. No

Explanation:

Please find attached solution to question 1 and 2a.

2b. No. I wouldn't recommend the increased advertising because already the company is making a loss. Moreover, with the increased advertising, the company's net operating loss further increased.

Hitzu Co. sold a copier costing $6,500 with a two-year parts warranty to a customer on August 16, 2018, for $13,000 cash. Hitzu uses the perpetual inventory system. On November 22, 2019, the copier requires on-site repairs that are completed the same day. The repairs cost $113 for materials taken from the repair parts inventory. These are the only repairs required in 2019 for this copier. Based on experience, Hitzu expects to incur warranty costs equal to 5% of dollar sales. It records warranty expense with an adjusting entry at the end of each year.1. How much warranty expense does the company report in 2018 for this copier? 2. How much is the estimated warranty liability for this copier as of December 31, 2018? 3. How much warranty expense does the company report in 2019 for this copier? 4. How much is the estimated warranty liability for this copier as of December 31, 2019? 5. Prepare journal entries to record (a) the copier's sale; (b) the adjustment on December 31, 2018, to recognize the warranty expense; and (c) the repairs that occur in November 2019.

Answers

Answer:

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_______ describes approaches that recognize differences between target markets by using individual marketing mixes.a. market segmentation
b. segmentation criteria
c. segmented marketing strategy

Answers

Answer:

Option C, Segmented marketing strategy

Explanation:

Segmented marketing strategy is a process of breaking down the targeted audience into smaller groups so that it can be easily managed. The criteria’s used for breaking down the market include – geography, behaviour, demography and Psychographic.

Hence, option C is correct

Many people have argued that the skills needed to be successful in today's workforce have changed. What skills do you feel an individual needs to be successful in a job today? Why do you feel these skills are most important?

Answers

Answer:

the skills of:

1) Basic Technology

2) Communication

3) Problem Solving

4) Collaboration

5) Adaptability

6) Multitasking

7) Social Media

Explanation:

Successful employees have common and detailed career goals and plans. Those who do not, however, prefer to flow in their work lives. The person with goals has a strong internal motivation. They are not discouraged when they fail. It is difficult to separate these people from their work and distract them. A person with goals is already motivated for development. Most importantly, an employee with clear goals often has a clearly defined career and development plan, and he already knows what tools, skills and qualifications will help him in that sequence. A person without goals is like a piece of water moving in the direction of sea waves and winds. Wherever the wind blows or where the waves drive, they will go there.

We could say that five general skills that workers say are most important when it comes to getting hired and being successful in the workplace:

Ability and willingness to learn new skills

Critical thinking and problem solving  

Collaboration and team work  

Interpersonal communication

Ability to analyze and synthesize information.

More specifically, we can list the most important ones nowadays, the skills of:

1) Basic Technology

2) Communication

3) Problem Solving

4) Collaboration

5) Adaptability

6) Multitasking

7) Social Media

Prepare adjusting entries for the following transactions. 1. Depreciation on equipment is $1,340 for the accounting period.
2. Interest owed on a loan but not paid or recorded (accrual) is $275.
3. There was no beginning balance of supplies and $550 of office supplies were purchased during the period. At the end of the period $100 of supplies were on hand.
4. Legal service revenues of $4,000 were collected in advance. By year-end $900 was still unearned.
5. Salaries incurred by year end but not yet paid or recorded amounted to $900.

Answers

Answer:

1. Debit Depreciation expense  $1,340

  Credit Accumulated depreciation  $1,340

2. Debit Interest expense  $275

   Credit Accrued Interest  $275

3. Debit Supplies expense  $450

   Credit Supplies Account  $450

4. Debit Unearned Service revenue  $3,100

   Credit Service revenue  $3,100

5. Debit Salaries expense  $900

   Credit Accrued Salaries  $900

Explanation:

Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.

It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset

Mathematically,  

Depreciation = (Cost - Salvage value)/Estimated useful life

It is recorded by debiting depreciation and crediting accumulated depreciation.

When interest is incurred as an expense but yet to be paid, it will be accrued for by Debiting Interest expense and crediting accrued Interest. The same applies to salaries incurred but yet to be paid.

When Supplies is purchased, Debit supplies and credit Cash/Accounts payable. As Supplies are used up, debit supplies expense (with the amount used) and Credit Supplies account.

Amount of supplies used up = $550 - $100

= $450

When a fee is received in advance for a service yet to be rendered, the revenue for such fee is said to be unearned. The entries required are

Debit Cash account and Credit Unearned fees or deferred revenue.

As the service is performed and the revenue is earned, debit Unearned fees and credit revenue.

Earned revenue = $4,000 - $900

= $3,100