You are considering acquiring a common stock that you would like to hold for one year. You expect to receive both $2.50 in dividends and $28 from the sale of the stock at the end of the year. The maximum price you would pay for the stock today is ________ if you wanted to earn a 15% return. Group of answer choices $24.11 $27.50 $23.91 $26.52 None of the options are correct.

Answers

Answer 1
Answer:

Answer:

$26.52

Explanation:

The computation of the maximum price for paying for the stock today is shown below:

As we know that

Required rate of return = (Sale of the stock - maximum price + dividend received) ÷ (maximum price)

0.15 = ($28 - maximum price + $2.50) ÷ (maximum price)

0.15 × maximum price = $28 - maximum price + $2.50

So, the maximum price is  $26.52

We simply applied the above formula


Related Questions

According to the Coase theorem, in the presence of externalities a private parties can bargain to reach an efficient outcome. b government assistance is necessary to reach an efficient outcome. c the initial distribution of property rights will determine the efficient outcome. d the assignment of legal rights can prevent externalities.
The president of the American Auto Parts Corporation recently testified before members of Congress, urging them to limit the flow of imported automobile parts into the United States. She contended that these imports were priced lower than the foreign producers were charging for the same parts in their own countries. She believes these foreign producers are guilty of _______.
Which of the following ratios indicate strong capacity for a company? Select ALL correct answers.Low profit margin ratioLow asset turnover ratioLow operating margin ratioLow debt to equity ratioHigh debt service coverage ratio
The basis for classifying assets as current or noncurrent is conversion to cash within A. the operating cycle or one year, whichever is shorter. B. the operating cycle or one year, whichever is longer. C. the accounting cycle or one year, whichever is longer. D. the accounting cycle or one year, whichever is shorter.
Gelb Company currently manufactures 51,500 units per year of a key component for its manufacturing process. Variable costs are $5.15 per unit, fixed costs related to making this component are $65,000 per year, and allocated fixed costs are $78,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.90 per unit. Calculate the total incremental cost of making 51,500 units and buying 51,500 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier?

LO 6.5Under absorption costing, a unit of product includes which costs?direct material, direct labor, and manufacturing overhead
direct material, direct labor, and variable manufacturing overhead
direct material, direct labor, and fixed manufacturing overhead
direct material, direct labor, and all variable manufacturing overhead

Answers

Answer: direct material, direct labor, and fixed manufacturing overhead

Explanation: In calculating product cost in a manufacturing environment, there are two types of costing namely the variable costing method and absorption costing method.

Under absorption costing, a unit of product includes direct materials, direct labour, variable overheads and all fixed manufacturing overhead.

under this method, all variable cost as well as fixed cost are all included in the cost of a product.

Absorption costing is required by GAAP and so has to be using in preparing the financial accounts.

Under absorption costing, a unit of product includes all production costs, namely direct material, direct labor, and both variable and fixed manufacturing overhead.

Under absorption costing, a unit of product includes all costs that are involved in the manufacturing process. These costs include direct material, direct labor, and both variable and fixed manufacturing overhead. To elaborate, direct materials are the raw materials used in producing the product, direct labor is the hands-on labor involved in production, and manufacturing overhead consists of indirect costs associated with production such as factory rent, utilities and production manager salaries. Both variable and fixed overhead costs should be included, with the former changing with the level of production and the latter remaining constant regardless of the production volume.

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You plan to buy a $250,000 home with a 20% down payment. The bank you want to finance the loan through suggests two options: a 15-year mortgage at 4.25% APR and a 30-year mortgage at 5% APR. What is the difference in monthly payments between these two options?

Answers

Answer:

A 15-year mortgage monthly payments is: $1,496.5

A 30-year mortgage monthly payments is: $1,060.1

=> The difference of monthly payment between the two options is: $436.4 ( $1,496.5 - $1,060.1) where the monthly payment of the option of 15-year mortgage is higher.

Explanation:

The borrowed amount in both options is : $250,000 * 80% = $200,000;

* A 15-year mortgage monthly payments is:

We have (1+APR) = ( 1 + Monthly Interest rate)^12 <=> 1.0425 = ( 1 + Monthly Interest rate)^12 <=> Monthly Interest rate = 0.3475%;

Amount of payment periods = 15 * 12 = 180

=> Monthly payment = (200,000 * 0.3475%) / [ 1 - 1.003475^(-180) ] = $1,496.5

* A 30-year mortgage monthly payments is:

We have (1+APR) = ( 1 + Monthly Interest rate)^12 <=> 1.05 = ( 1 + Monthly Interest rate)^12 <=> Monthly Interest rate = 0.4074%;

Amount of payment periods = 30 * 12 = 360

=> Monthly payment = (200,000 * 0.4074%) / [ 1 - 1.004074^(-360) ] = $1,060.1

What is the total cost to move products between work centers A and D, and between work centers B and C combined

Answers

Answer:

More than $0 but less than or equal to $100.

Explanation:

The transportation cost is $2.

Load summary is AB = 12, AC = 25, AD = 12, BC = -19, BD = 21, CD = 34.

The total cost to move product between A and D and B and C combined is ;

A and D = 12 * $2 = $24

B and C = 19 * $2 = $38.

Which of these projects is likely to have the higher asset beta, other things equal? Why? a. The sales force for project A is paid a fixed annual salary. Project B’s sales force is paid by commissions only.b. Project C is a first-class-only airline. Project D is a well-established line of breakfast cereals.

Answers

Answer: A and B

Explanation: The above projects is likely to have higher asset beta other things being equal because people or workers are motivated by Money which would aid them to perform and give hundred percent on any project.

Abraham Maslow gives us a good explanation around Motivation-Starting from the premise that each human being is motivated by needs that are inborn, presumably as a result of tens of thousands of years of evolution, the Maslow theory of motivation suggests a hierarchy of needs:  

Physiological needs  

These are the very basic needs such as air, water, food, sleep, sex, etc. When these are not satisfied we may feel sickness, irritation, pain, discomfort, etc. These feelings motivate us to alleviate them as soon as possible to establish homeostasis. Once they are alleviated, we may think about other things.  

Safety needs  

These have to do with establishing stability and consistency in a chaotic world. These needs are mostly psychological in nature. We need the security of a home and family. However, if a family is dysfunction, i.e., an abused child - cannot move to the next level as she is continuously fearful for her safety. Love and a sense of belonging are postponed until she feel safe.  

Love and needs of belonging  

Humans have [in varying degrees of intensity] a strong desire to affiliate by joining groups such as societies, clubs, professional associations, churches and religious groups etc. There is a universal need to feel love and acceptance by others.  

Self-Esteem needs  

There are essentially two types of esteem needs:self-esteem resulting from competence or mastery of a task; and the esteem and good opinion of other people.  

The need for self-actualisation  

Maslow theory of motivation proposes that people who have all their "lower order" needs met progress towards the fulfilment their potential. Typically this can include the pursuit of knowledge, peace, esthetic experiences, self-fulfillment, oneness with God, nirvana, enlightenment etc. So ultimately this is all to do with the desire for self transcendence.

Final answer:

Project A and Project C are likely to have higher asset betas due to their specific characteristics.

Explanation:

The asset beta of a project depends on various factors, including the risk profile of the project. In the given scenarios, the project with a higher asset beta would be:

  • Option a: Project A, where the sales force is paid a fixed annual salary, is likely to have a higher asset beta compared to project B. This is because fixed salaries are a fixed cost for the project, which means that any changes in sales revenue would directly impact the project's profitability and risk.
  • Option b: Project C, which is a first-class-only airline, is likely to have a higher asset beta compared to project D, which is a well-established line of breakfast cereals. This is because the airline industry is generally more volatile and exposed to economic fluctuations compared to the stable and established breakfast cereal industry.

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In business, it is important to establish your _____ from your first day on the job. Multiple choice question. need for power credibility sense of humor desires

Answers

One of the most important things to establish in business from your first day is:

  • B. Credibility

Business Credibility

This refers to the quality that your business partners are able to trust you and you are accountable and you as a business person has good ethics and can be relied on.

With this in mind, we can see that the first thing to establish in business is credibility.

Therefore, the correct answer is option B

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How might different types of office design influence employee social interaction, collaboration, and creativity? Should there be encouraged even in organizations without an innovative culture?

Answers

Answer:

The definition is defined in the clarification section following, according to the particular circumstance.

Explanation:

  • As either a consequence of any understanding that growing the success of their workforce would be the primary objective, certain corporations are rational organizations. Whenever we prefer seeing it as a data work economy, therefore say that perhaps the organization's workers are the driver that makes the business develop, grow and innovate. Via the job style, the efficiency of the employees of the organization could be supported and overall productivity could be exaggerated by enhancing their quality of life as well as wellbeing.
  • From arranging the surface including its ground, the function style could be done to allow the naturally lightweight to infiltrate into another surface in an incredibly appropriate volume. As an example, organizations are going to use sunglasses throughout areas where privacy is not necessary. The views should be expanded and the outside room including its offices should then be provided to the workers for their use. In recess, workers can be encouraged to go somewhere so they can relax.
  • Employees may also be equipped with headphones or modern techniques such as auditory masking to concentrate on their output without distracting them from being interrupted. It can also be normal for break spaces to construct the workers to feel pressure incredibly very challenging day.
  • If businesses do not have a creative culture, so they can mutually enable workers to be discomfort and also have a straightforward mindset through thinking and they'll use something in their jobs or otherwise exaggerate performance, although as a consequence of the whole fashion. These are not created, they are the basic needs that should be supplied by every organization.

Final answer:

Office design influences employees' social interaction, collaboration, and creativity. Encouraging a culture of collaboration and creativity benefits all organizations, fostering productivity, job satisfaction, and retention. Balancing collaborative and private spaces within the design is crucial.

Explanation:

Different types of office design significantly influence employee social interaction, collaboration, and creativity. For example, an open-plan office may encourage more spontaneous conversations and collaboration compared with a cubicle-based layout, which tends to isolate employees, limiting their social interactions. Conversely, a cubicle-based design might allow for more focused work free from disruptions.

Socializing employees through shared experiences can impact their opinions about various policies. Therefore, designing the workplace to facilitate social interaction may align employees' thinking, leading to more cohesive and cooperative attitudes.

Workplace socialization can occur both informally and formally. Informal socialization can be fostered through common areas where employees congregate, such as a shared kitchen or a communal lounge. Formal socialization can be established by implementing structured activities or meetings that encourage interactions between employees.

Encouraging a culture of collaboration and creativity should be a standard practice in all organizations, even those that don't initially seem innovative. A culture of collaboration can increase productivity, job satisfaction, and workplace retention. Organizations increasingly structure themselves to delegate work to teams, capitalizing on diverse skills, experience, and expertise.

However, it's essential to balance the need for collaboration with the need for focused, individual work. Using a variety of office design elements such as quiet zones, collaboration areas, and private spaces can help achieve this balance.

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