Suppose firm X just paid its annual dividend of $2.00 per share. You expect that the firm will continue to pay $2.00 per share (per year) for the next 10 years (times t=1 through 10), after which point you expect that the annual dividend per share will grow by 12% every year thereafter (forever). If the required rate of return is 15%, what is the current price per share?

Answer:

Current price per share = $10.54

Explanation:

Note: See the attached file for the calculation of present values (PV) for year 1 to 10 dividends.

From the attached excel file, we have:

Total of dividends from year 1 to year 10 = $10.0375372517085

Year 10 dividend = $0.494369412243732

Therefore, we have:

Year 11 dividend = Year 10 dividend * (100% + Dividend growth rate after year 10) = $0.494369412243732 * (100% + 12%) = $0.55369374171298

Share price at year 10 = Year 11 dividend / (Required return rate - Dividend growth rate after year 10) = $0.55369374171298 / (15% + 12%) = $2.05071756189993

PV of share price at year 10 = Share price at year 10 / (100% + Required return rate)^Number of years = $2.05071756189993 / (100% + 15%)^10 = $0.506906017877183

Therefore, we have:

Current price per share = Total of dividends from year 1 to year 10 + PV of share price at year 10 = $10.0375372517085 + $0.506906017877183 = $10.54

PLEASE HELP! WILL MARK BRAINLIEST!! 10 POINTS
Assume a visitor from another nation decides to open a checking account at J & R National Bank. The visitor deposits $20,000 that is new money to the Macro Islands economy. The central bank has set a required reserve ratio of 10%.
What is the change in the total amount that J & R National Bank can loan out? Explain.
Calculate the total amount that the bank can create? (Calculate means show your work.)
Now assume that the Macro Islands government decides to increase spending to fund new projects that will bring in more visitors. Explain what will happen to the demand for loanable funds and real interest rates as a result.

Read the following request message, and then answer the question.

To: Customer Support
From: Helen Martin
Subject: Warranty Information for Netbook Computer
Dear Customer Service,
I need this information by noon tomorrow at the latest. My team has an important presentation to give, and my netbook crashed while we were working on the presentation. I can’t find the warranty information anywhere. So I have a few questions. Where is my warranty information? How long does it normally take to repair these machines? Do I have to mail the netbook to you, or can I bring it to your local repair shop? Will you please answer these questions in a timely manner? Thank you in advance for your help.

Regards,
Helen Martin

Revision A:
1. Where do I find my warranty information?
2. How long does the average netbook repair take?
3. Do I need to mail in my netbook for repairs or bring it to your local repair shop?

Revision B:
Where is my warranty information? How long does the average repair take? Do I have to mail in my netbook?

Revision C:
Where do I find the information?
How long does it take?
Can I take it to my local shop?

Which of the preceding revisions is the best revision for the body of this message?

A. Revision B
B. Revision C
C. Revision A

In addition to making requests, you will have to respond to requests in the business world.

Complete the following sentence with the dropdown menu.
Direct response messages might _______?

a. include long, flowery descriptions
b. use the "me" view
c. supply explanations and additional information

During its most recent fiscal year, Raphael Enterprises sold 270,000 electric screwdrivers at a price of $17.10 each. Fixed costs amounted to $729,000 and pretax income was $999,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question

Exercise 6-1B Calculate cost of goods sold (LO6-2) A company begins the year with inventory of $53,000 and ends the year with inventory of $43,000. During the year, the company has four purchases for the following amounts. Purchase on February 17 $ 208,000 Purchase on May 6 128,000 Purchase on September 8 158,000 Purchase on December 4 408,000 Required: Calculate cost of goods sold for the year.

Crimson Tide Music Academy offers lessons in playing a wide range of musical instruments. The unadjusted trial balance as of December 31, 2021, appears below. December 31 is the company's fiscal year-end.
Accounts Debits Credits
Cash $ 10,300
Accounts Receivable 9,500
Supplies 2,000
Prepaid Rent 7,200
Equipment 90,000
Accumulated Depreciation $ 12,000
Accounts Payable 7,700
Salaries Payable 0
Interest Payable 0
Utilities Payable 0
Notes Payable 20,000
Common Stock 45,000
Retained Earnings 19,000
Service Revenue 42,200
Salaries Expense 24,500
Interest Expense 0
Rent Expense 0
Supplies Expense 0
Utilities Expense 2,400
Depreciation Expense 0
Totals $ 145,900 $ 145,900
Information necessary to prepare the year-end adjusting entries appears below.
a. Depreciation of equipment for the year is $6,000.
b. Accrued salaries at year-end should be $2,100.
c. Crimson Tide borrows $20,000 on September 1, 2018. The principal is due to be repaid in four years. Interest is payable each August 31 at an annual rate of 12%.
d. Unused supplies at year-end total $700. Crimson Tide debits Supplies at the time supplies are purchased.
e. Crimson Tide opens a second studio by paying for one year of rent in advance on April 1, 2018, for $7,200 ($600 per month) debiting Prepaid Rent.
f. Unpaid utilities for December total $200.
Required:
1) Enter the unadjusted balances from the trial balance and post the adjusting entries to the T-accounts, and post the closing entries to the T-accounts.
2) prepare an adjusted trial balance.
3a ) prepare an income statement for the year end december 31,2018.
3b) prepare a statement of sharholders equity for the year ended decmber 31,2018.
3c) prepare a classified balance sheet for the year ended december 31, 2018.
4) record the closing entries.
5) prepare a post-closing trial balance.

On July 1, Sterns Co. acquired patent rights for $36,000. The patent has a useful life of 6 years and a legal life of 15 years.
Required:
Journalize the adjusting entry on December 31 to recognize the amortization. Refer to the Chart of Accounts for exact wording of account titles.

Bearington Enterprises uses an activity-based costing system to assign costs in its auto-parts division.

Activity Est. Indirect Activity Costs Allocation Base Cost Allocation Rate
Materials $60,000 Material moves $5.00/move
Assembling $175,000 Direct labor hours $5.00/dir. labor hour
Packaging $70,000 # of finished units $2.50/finished unit

The following units were produced in December with the following information:

Part # # Produced Materials Costs # Moves Dir. Labor Hrs.
Part 001 1,350 $2,500 100 500
Part 002 5,500 $5,000 400 200
Part 003 4,050 $7,000 2,800 1,550

Total manufacturing costs for Part 003 are : _______

Assuming a specific single project with normal cash flows and a cost of capital of 10%, which of the following statements will ALWAYS be true?

a. If NPV > 0 at the stated cost of capital (i.e., 10%), then NPV will also be > 0 at a cost of capital of 12%.
b. If NPV > 0, then Profitability Index > 0.
c. If NPV > 0, then Payback Period > 0.
d. If NPV > 0, then a simple sum of the cash inflows of the project will always be greater than the cost of the project (i.e, the year 0 cash flow).
e. If NPV > 0, then IRR > 0.

Blue expects to begin selling the product next year. If Blue elects to amortize research and experimental expenditures over 60 months, determine the amount of the deduction for research and experimental expenditures for the current year.
a. $0
b. $118,000
c. $143,000
d. $152,000

Job 243 $5,750 Job 244 $4,980 Job 245 $3,675 Job 246 $4,250 Job 247 $5,100 Job 248 $3,800 Jobs 243 and 244 were in finished goods inventory at the beginning of the month. Jobs 245 and 246 were in work in process at the beginning of the month. Jobs 247 and 248 were started during the month. At the end of the month, Jobs 243 and 244 were sent to customers; Jobs 245, 247, and 248 were completed and sent to finished goods. What is the cost of goods sold for the month

On November​ 1, Equipment had a beginning balance in the Office Supplies account of . During the​ month, purchased of office supplies. At November​ 30, Equipment had of office supplies on hand.

Required:
The Office Supplies​ T-account has been opened for you. Post the beginning balance and purchase of office supplies. ​

Kim Thorsten uses rationale to make decisions for project implementation. She believes that the right decisions can be made only through analysis and examination. Each time she needs to make a decision, she weighs all options before taking action. Which of the following is a characteristic of Thorsten's personality type according to the Myers-Briggs Type Indicator (MBTI) classification?
a. intuitive
b. thinking
c. introverted
d. perceiving
e. feeling

Because of the compounding effect:

a. large yearly growth rates are needed to achieve sustained growth.
b. large yearly growth rates are needed to achieve sustained growth.
c. small changes in economic growth rate lead to large GDP changes over time.
d. small changes in economic growth rate lead to large GDP changes over time.
e. interest compounding allow the economy to grow faster.

Required information Skip to question [The following information applies to the questions displayed below.] The Tennis Times (TTT) is a publisher of magazines. Its accounting policy for subscriptions follows: Revenues Revenues from our magazine subscription services are deferred initially and later recognized as revenue as subscription services are provided. Assume TTT (a) collected $420 million in 2018 for magazines that will be distributed later in 2018 and 2019, (b) provided $204 million of services on these subscriptions in 2018, and (c) provided $216 million of services on these subscriptions in 2019. Required: Using the information given, indicate the accounts, amounts, and accounting equation effects of transactions (a), (b), and (c). (Enter any decreases to assets, liabilities, or stockholders equity with a minus sign. Enter your answers in whole dollars.)

Which of these are NOT an example of a Nonforfeiture option?

Extended Term

Reduced Paid-up

Cash Surrender

Life Income

An employee earned $1,000 in the first pay period of the current year. How much is the total employer and employee social security taxes on these earnings? (Use the simplified rate shown in illustrations.)

Comet Company is owned equally by Pat and his sister Pam, each of whom holds 100 shares in the company. Pam wants to reduce her ownership in the company, and it was decided that the company will redeem 50 of her shares for $1,000 per share on December 31, 20X3. Pam's income tax basis in each share is $500. Comet has total E&P of $250,000. What are the tax consequences to Pam as a result of the stock redemption?
a) $25,000 capital gain and a tax basis in each of her remaining shares of $100.
b) $50,000 dividend and a tax basis in each of her remaining shares of $50.
c) $50,000 dividend and a tax basis in each of her remaining shares of $100.
d) $25,000 capital gain and a tax basis in each of her remaining shares of $500.

Yams Company reports the following operating results for the month of August: sales $400,000 (units 5,000), variable costs $240,000, and fixed costs $90,000. Management is considering the following independent courses of action to increase net income.

1. Increase selling price by 10% with no change in total variable costs or units sold.
2. Reduce variable costs to 55% of sales.

Required:
Compute the net income to be earned under each alternative. Which course of action will produce the higher net income?

Equipment was purchased for $151000. Freight charges amounted to $6000 and there was a cost of $14000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $36000 salvage value at the end of its 5-year useful life. Depreciation Expense each year using the straight-line method will be

Item10 1 points Time Remaining 50 minutes 15 seconds00:50:15 Item 10 Time Remaining 50 minutes 15 seconds00:50:15 A long-term asset is recorded at the: Multiple Choice Additional costs to get the asset ready for use. Cost of the asset. Cost of the asset less all costs necessary to the asset ready for use. Cost of the asset plus all costs necessary to the asset ready for use.

High-Low Method
The manufacturing costs of Ackerman Industries for the first three months of the year follow:
Total Costs Units Produced
January $1,900,000 20,000 units
February 2,250,000 27,000
March 2,400,000 30,000
Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost.
a. Variable cost per unit $
b. Total fixed cost $

During 2017, Benson purchased $1,450,000 of raw materials, incurred direct labor costs of $250,000, and incurred manufacturing overhead totaling $160,000. How much raw materials were transferred to production during 2017 for Benson

Assuming no change in government spending, an decrease in taxes of $100 billion with an MPC of 0.90 will add a total of $_____________ billion to the economy after the multiplier effect.
A. 800
B. 400
C. 500
D. 900

anh chị hãy phân tích phản ứng của người tiêu dùng trong lần tăng giá xăng gần đây nhất

You are planning to save for retirement over the next 30 years. To do this, you will invest $700 a month in a stock account and $400 a month in a bond account. The return of the stock account is expected to be 7.5 percent, and the bond account will pay 5.5 percent. When you retire, you will combine your money into an account with a 2.5 percent return. How much can you withdraw each month from your account assuming a 25-year withdrawal period?
a. 5.545.73.
b. 6,081.31.
c. 5,870.85.
d. 6.205.66

Country A and Country B have had an informal trading arrangement for many years wherein merchants on the border of the countries may freely trade goods without the restriction of fees. Which of the following is true?

a. The government of Country A may not arbitrarily begin to charge fees for items brought in from Country B.
b. Country A and Country B have a binding agreement to this arrangement under customary international law.
c. Country A and Country B have no binding agreement under customary international law.
d. More than one response is correct.

You are closing the accounts you used to bill the project costs, but you still have some lingering expenses. Which best practice should you follow?

Suppose that the U.S. government decides to charge cola consumers a tax. Before the tax, 45 million cases of cola were sold every month at a price of $6 per case. After the tax, 39 million cases of cola are sold every month; consumers pay $7 per case (including the tax), and producers receive $3 per case (after paying the tax).
The amount of the tax on a case of cola is___per case. Of this amount, the burden that falls on consumers is____per case, and the burden that falls on producers is____per case.
The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers.
A. True
B. False

All companies try to have happy workers as they know the relationship between satisfaction and performance. This is why they are focusing on motivating their employees in a variety of ways. From what you have learned please suggest what companies should do to have a working place that could effectively motivate their employees.

Blackwell, Inc. has a $125,000 liability it must pay five years from today. The company is opening a savings account so that the entire amount will be available when this debt needs to be paid. The plan is to make an initial deposit today and then deposit an additional $30,000 each year for the next three years, starting one year from today. The account pays a 5 percent rate of return. How much does the firm need to deposit today