Asonia Co. will pay a dividend of $5.30, $9.40, $12.25, and $14.25 per share for each of the next four years, respectively. The company will then close its doors. If investors require a return of 9.8 percent on the company's stock, what is the stock price?

Answers

Answer 1

Answer:

Answer:

$31.68

Explanation:

The computation of the stock price is shown below:

= Dividend for year 1 ÷ (1 + required return)^number of years + Dividend for year 2 ÷ (1 + required return)^ number of years + Dividend for year 3 ÷ (1 + required return)^ number of years + Dividend for year 4 ÷ (1 + required return)^ number of years

= $5.30 ÷ (1 + 9.8%) + $9.40 ÷ (1 + 9.8%)^2 + $12.25 ÷ (1 + 9.8%)^3 + $14.25 ÷ (1 + 9.8%)^4

= 4.82695810564663 + 7.79692170895252 + 9.25399090557962 + 9.80404969365523

= 31.681920413834

= $31.68

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An Army Corps of Engineers project for improving navigation on the Ohio River will have an initial cost of $6,150,000 and annual maintenance of $115,000. Benefits for barges and paddle wheel touring boats are estimated at $775,000 per year. The project is assumed to be permanent, and the discount rate is 12% per year. Determine if the Corps should proceed with the project.What will be an ideal response?
The government of Argentina has taken over all the country's banks. No compensation has been paid. Some U.S. citizens and businesses had accounts in the banks. Absent treaty provisions the takeover: a. can be partially set aside by a U.S. federal court on the accounts of U.S. citizens and businesses. b. can be reviewed by the U.S. State Department. c. can be set aside by a U.S. federal court because no compensation was paid. d. is immune from review under the act of state doctrine.
"Personal selling:" A. involves direct spoken communication between sellers and potential customers. B. costs less than advertising for reaching a large, widespread market. C. tries to communicate with many customers at the same time. D. refers to "promoting" at trade shows, demonstrations, and contests. E. All of these alternatives for "personal selling" are correct.

Concert Production is planning an appearance of the top band Iggy Wiggy. They plan to buy custom desgined T-shirts to sell at the stadium where the concert will take place. The T-shirt will sell for $25 and the cost per shirt is $8. Previous experience at the Concert Productions suggests that after the concert is over, T-shirts can still be sold, but the selling price will only be $5 per shirt. Based on analysis of previous similar concerts, the company estimates sales of the T-shirt will be 6,000 units. However, the analysis also shows that the standard deviation in similar situations is 800 units.How many Iggy Wiggy T-shirts should the company order?

Answers

Answer:

Iggy Wiggy T-shirts should order 6,829 units of T-shirt

Explanation:

Cost per T-shirt = $8.00

Selling Price per T-shirt = $25

Marginal Profit = 25 - 8 = $17

Marginal Loss when t-shirt is sold for $5 = $8 - $5 = $3

Mean = 6000 units

Standard deviation = 800 units

Using the News Vendor Model

Q = MP / MP + ML

Q = 17 / (17+3)

Q = 17 / 20

Q = 0.85

Using NORMINV in Ms excel

= NORMINV (probability, mean, standard deviation)

= NORMINV(0.85,6000,800)

= 6829.14 units

Thus, Iggy Wiggy T-shirts should order 6829 units of T-shirt.

Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transactions would have upon cash and net income. The first transaction has been completed as an example.Cash Net Income
A. Purchased $100 of supplies for cash. –$100 $0
B. Recorded an adjusting entry to record
use of $30 of the above supplies.
C. Made sales of $1,250, all on account. 1297 1164
D. Received $850 from customers in payment
of their accounts. 865 299
E. Purchased equipment for cash, $2,600. 2528 2229
F. Recorded depreciation of building for period
used, $650. 610 2839

Answers

Answer:

Item cash Net income

a Purchase of Supplies of cash -$100 -

b Adjusting entry for use of supplies - -$30

c Made sales on account - $1,250

Made sales on account - $1,297

d Received cash from customer on acct $850 -

Received cash from customer on acct $865 -

e Purchased equipment for cash -$2,600 -

Purchased equipment for cash -$2,528 -

f Depreciation of building to be recorded - -$650

Depreciation of building to be recorded - -$610

Sleepy Company, a 70%-owned subsidiary of Pickle Corporation, reported net income of $600,000 and paid dividends totaling $225,000 during Year 3. Year 3 amortization of differences between current fair values and carrying amounts of Sleepy's identifiable net assets at the date of the business combination was $112,500. The noncontrolling interest in consolidated net income of Sleepy for Year 3 was :
a. $146,250.
b. $33,750.
c. $67,500.
d. $180,000.

Answers

Answer:

Option (a) is correct.

Explanation:

Given that,

Net income = $600,000

Difference between fair value and carrying value = $112,500

70%-owned subsidiary of Pickle Corporation.

Non-controlling interest in net income:

= [Net income - Difference between fair value and carrying value] × 0.3

= [$600,000 - $112,500] × 0.3

= $487,500 × 0.3

= $146,250

On Mar 3, L. Lyons withdrew $100 for personal use. Use your knowledge of what a correct journal entry should look like to identify what would be included.

Answers

Answer:

L. Lyons Company

Correct Journal Entry

Debit L.Lyons, Drawings $100

Credit Cash $100

To record the cash withdrawn by L. Lyons for personal use.

Explanation:

When the owner, L. Lyons, withdraws cash for personal use, it reduces the owner's equity interest in the business. Cash as an asset is also reduced by the same amount. Therefore, the double entry should be a debit to the Owner's Capital account (here represented by Drawings) and a credit to the Cash account.

Final answer:

L. Lyons withdrawal of $100 would be treated as an owner's draw, reflecting a decrease in the company's assets. A journal entry would debit the owner's draw account and credit the cash/bank account.

Explanation:

When L. Lyons withdrew $100 for personal use, this would have been treated as an owner's draw and should be reflected in the financial records of the business. A correct journal entry would involve debiting the owner's draw account and crediting the cash or bank account. Why? The money is going out of the business (hence a decrease in the company's assets), and it's going towards the owner, so it's an owner's draw. So, the journal entry would look as follows:

Debit: Owner's Draw $100
Credit: Cash/Bank $100

Learn more about Journal Entry here:

brainly.com/question/33762471

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Mira Mesa Appliances makes and sells kitchen equipment for offices and hotel rooms. Mira Mesa management believes that a new model of refrigerator made out of a synthetic material would sell well at a price of $260 per unit. Labor costs are estimated at $32 per unit and overhead costs would be $24 per unit. The major uncertainty is the price of the synthetic material. Mira Mesa is in negotiations with several suppliers for the material. Because of the risk associated with the new product, Mira Mesa will only proceed if the estimated return is at least 30 percent of the selling price.Required:
What is the most Mira Mesa can pay for the synthetic material per unit (refrigerator) and meet its profitability goal?

Answers

Answer:

$126

Explanation:

We can calculate the amount Mira can pay for the synthetic material per unit (refrigerator) and meet its profitability goal by deducting the estimated profit and then all the cost from the selling price per unit.

Selling price per unit $260

Less

estimated return (260x30%) = ($78)

Labor costs ($32)

Overhead costs ($24)

Material $126

Amount Mira can pay for Synthetic material per unit is $126

The owner of a greenhouse and nursery is considering whether to spend $6,000 to acquire the licensing rights to grow a new variety of rosebush, which she could then sell for $6 each. Per-unit variable cost would be $3. How many rosebushes would she have to produce and sell in order to break even

Answers

Answer:

Break-even point in units= 2,000

Explanation:

Giving the following information:

Fixed costs= $6,000

Selling price= $6 each

Unitary variable cost= $3

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 6,000 / 3

Break-even point in units= 2,000

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