Sand Point Corporation's common stock recently paid a dividend of $1.50. Investors require a 16% rate of return on this stock. Sand Point earns a 30% return on equity. The firm pays 60% of its earnings as dividends, and reinvests 40% of earnings in the firm. What is the value of the stock

Answers

Answer 1

Answer: $42

Explanation:

Value can be found using the Gordon Growth model;

= (Current dividend * (1 + Growth rate)) / ( required return - growth rate)

Growth rate =  Retention ratio * Return on equity

= 40% * 30%

= 12%

Value = (1.50 * 1.12)/ ( 16% - 12%)

= $42


Related Questions

dry cleaning is also known as​

Answers

Answer:

Dry scouring.

Explanation:

Here's some information for you incase you needed to know alittle more. Just write it in your own words do not copy.

Write an essay about the effect of cost and production on our economy.

Answers

Answer:

Costs and production are both very important for the economy.

Explanation:

Costs are the values of the goods and services used for the production of other goods and services. For example, for the production of a chair, we must factor the cost of the raw material: wood, and the cost of direct labor: the wage of the carpenter.

Costs therefore, are crucial in determining the amount of output in an economy.

Cost also determine help determine the market structure of the economy. In general terms, when costs are high, profits are lower, which attracts less firms to the sector, and results in less competitive market structures such as oligopoly or monopoly.

The opposite is true when costs are low, because in this situation profits are likely to be higher, which attracts more firms to the sector, resulting in more competitive market structures like perfect competition or monopolistic competition.

Finally, we can say that the production of goods and services is important because it is the most important factor in determining the living standars of people in an economy. When many goods and services are produced, people obtain higher incomes because they are paid for the production of these goods and services.

If your firm expects the euro to substantially​ depreciate, it could speculate by​ ____ euro call options or​ ____ euros forward in the forward exchange market.

a. selling; selling
b. selling; purchasing
c. purchasing; purchasing
d. purchasing; selling

Answers

Answer: selling; selling

Explanation:

If a particular firm expects the euro to depreciate, that is the value of the euro will be reduced, such firm will speculate by selling the euro call options or selling the euros forward in the forward exchange market.

This is because such firm will try as much as possible to make as much gain and when there's a speculation about decrease in value, the firm will sell the euro call options.

Jamison owns a rental cabin in Mammoth, and travels there for maintenance three times a year, between January and June. The round trip to Mammoth from San Diego where Jamison lives, is approximately 405 miles. How much travel costs can Jamison deduct per year related to his rental cabin?

a. $248
b. $686
c. $743
d. $1,352

Answers

Answer:

686

Explanation:

The question says that he travels to the cabin 3 times a year.

The trip to where cabin is located is 405 miles

We are to solve for the Amount of deduction allowed to Jamison for him to maintain his cabin.

The Amount of deduction = Total number of Miles travelled multiplied by 0.565

405 x3x$0.565 = $686.

So the correct answer is option b.

If demand for a good falls, but the opportunity cost of making the good increases, then production of the good will:________

a. increase
b. decrease
c. stay the same '

Answers

Increase witch is a

If demand for a good falls, but the opportunity cost of making the good increases, the production of the good will increase.

What takes place to the opportunity fee as manufacturing of an excellent increase?

The regulation of increasing opportunity expenses states that as you increase manufacturing of 1 top, the opportunity cost to produce an additional suitable will grow.

What is meant with the aid of growing possibility price?

The law of growing possibility fee is an economic precept that describes how opportunity charges boom as resources are carried out.

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Tropical Resort, Inc.'s bonds currently sell for $1,350 and have a par value of $1,000. They pay an 11% coupon rate with interest paid semi–annually, and have a 15-year maturity, but they can be called in 7 years at $1,125. What is their yield to call (YTC)?

Answers

Answer:

Their yield to call is 8.672%

Explanation:

The rate of return bondholders receives on a callable bond until the call date is called Yield to call.

Use following formula to calculate the yield to call

Yield to Call = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

Where

C = Coupon Payment = $1,000 x 11% x 6/12 = $55

F = Face value = $1,000

P = Call price = $1,125

n -= number of periods to call = 7 years x 2 = 14 periods

Yield to Call = [ $55 + ( $1,000 - $1,125 ) / 14 ] / [ ( $1,000 + $1,125 ) / 2 ]

Yield to Call = 46.07 / $1,062

Yield to Call = 0.04336

Yield to Call = 4.336% semiannually

Yield to Call = 4.336% x 2

Yield to Call = 8.672% annually

The difference between the rate charged to borrowers and the rate paid to depositors is known as the interest rate ______.

Answers

Answer:

The right approach is "spread".

Explanation:

The variation between the expected production a financial institution generates from loan payments among several other interests accumulating operations as well as the average rate everything just ends up paying on deposit accounts as well as borrowings seems to be the total rate of interest spread. An important aspect including its profitability of such a finance company seems to be the aggregate rate.

So that's the right response earlier in this thread.

Question 9 OTTU
Which of the following is not affected by a person's credit score?
A. Credit card rates
B. Federal income tax
C. Apartment rent
D. Ability to get a cell phone contract

Answers

The answer is C.Apartment rent

The top salary you can make.
A) Career
B) Productivity
C) Earning potential
D) Human capital

Answers

Answer:

earning potential

Explanation:

Earning potential refers to the potential gains from dividend payments and capital appreciation shareholders might earn from holding a stock. In other words, it reflects the largest possible profit that a corporation can make

Bonner company paid $855,000 for a tract of land which included a warehouse and office building. The land, warehouse and office building originally cost $280,000, $180,000, and $340,000 respectively and the current assessed values are $300,000, $200,000, and $400,000 respectively. How should Bonner calculate what value to record for Land?

a. 300,000/ 800,000 x 855,000
b. 280,000/900,000 x 855,000
c. 280,000 /800,000 x 855,000
d. 300,000/900,000 x 855,000

Answers

Answer:

Bonner Company

Bonner should calculate the value to record for Land as follows:

d. 300,000/900,000 x 855,000

Explanation:

The Land should be recorded at $285,000 based on the above mentioned formula.  The formula considers the current assessed value of the Land versus the amount paid by Bonner for the group of assets (Land, Warehouse and Office Buildings).  The computation of the value at which to record the Land and other assets must be proportional to the current assessed values.

Sooner Machinery Company purchased a delivery truck at a cost of $56,000 on March 10, 2018. The truck has a useful life of six years with an estimated salvage value of $5,000. Compute the annual depreciation for the first two calendar years using

a. The straight-line method.
b. The 150% declining-balance method.

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Purchase price= $56,000

Useful life= 6 yearsd

Salvage value= $5,000

a. To calculate the annual depreciation, we need to use the following formula:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (56,000 - 5,000) / 6= $8,500

Year 1:

Annual depreciation= (8,500/12)*10= $7,083.33

Year 2:

Annual depreciation= $8,500

b. To calculate the annual depreciation, we need to use the following formula:

Annual depreciation= 1.5*[(book value)/estimated life (years)]

Year 1:

Annual depreciation= [(1.5*8,500)/12]*10= $10,625

Year 2:

Annual depreciation= [(51,000 - 10,625)/6]*1.5

Annual depreciation= $10,093.75

HomeFront Construction Company built large, single-family homes for 25 years. Then there was a shift toward more demand for small luxury condominiums, and HomeFront changed its focus. The change in demand could be explained by:_____

a. the increasing number of senior citizens who are "empty-nesters."
b. the fact that consumers in urban areas generally have higher incomes.
c. the increasing number of 45-64 year olds whose children are grown.
d. All of these explanations could be relevant.

Answers

Answer:

d. All of these explanations could be relevant.

Explanation:

Change in demand for small luxury condominiums, from large single family homes could be : due to any of these three reasons - changing 'taste & preferences' of people

Increase in senior citizen (old parents) , whose children have moved away from home. So, they might feel settling in community apartments better rather than full lonely homes (without children) Urban area aged people tend to have higher income & financial base for purchasing luxury condominiums

Discuss the characteristics of the different functional structures used to implement the cost leadership, differentiation, integrated cost leadership/differentiation, and focused business-level strategies.

Answers

Explanation:

1-Cost leadership: in this functional structure, the organization's focus is to achieve competitive advantage in business through the strategy of pricing products and services cheaper than those of competitors. For this, it is necessary that the organization is fully integrated in order to join efforts so that there are joint actions in favor of reducing costs.

2- Differentiation: In this strategy, the focus is to offer products and services that are differentiated from those offered by the competition, that is, the organization seeks to offer products and services that have different benefits and characteristics to add value to the consumer, regardless of price.

3- Leadership / integrated cost differentiation: The company needs integration of its production systems, management and network system, so that it is possible to achieve economies of scale that reduce the cost of production and sales, and search for continuous improvement in all its processes .

4- Focused business level strategies: In this strategy, the organization will look for a specific market niche to operate and then look for cost reduction through a price system below those practiced in the market.

Even if a company has accurate sales forecast information calculated from multiple methods and based on solid data, the company should:

Answers

Answer:

prepare for multiple possible scenarios so it can react to whatever happens in the market

Explanation:

Sales forecast is a method of predicting futures sales volumes and patterns. It is used by businesses to make informed decisions on resource allocation.

Sales forecast determines short term and long term performance of the business.

However having accurate sales forecast information calculated from multiple methods and based on solid data does not give full assurance based on fluctuating market forces.

The business will need to prepare for multiple possible scenarios so it can react to whatever happens in the market.

A company should be prepared by ensuring proactiveness to other possible

conditions not contained in the forecast.

A company having accurate sales forecast information calculated from

multiple methods and based on solid data doesn't guarantee that deviations

can't occur. Sales information can only be forecasted and other activities  can alter the speculated sales information.

For example, the lockdown during the cov-id era caused most

shops to be shut down as a result of the self isolation carried out in

respective homes. This is a deviation in the norm and companies who

weren't prepared for it ran into debts and became liquidated.

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Short-run projected wealth levels calculated using geometric averages are probably ______________.

a. pessimistic
b. optimistic.
c. foolish.
d. erroneous.
e. confusing.

Answers

Answer:

A. pessimistic

Explanation:

A short run project usually does not take time and runs for a short period od time. The geometric average return answers the question what was your average compounded return per year over a particular period. To be pessimistic is said to be when an individual do see the worst of things or believe that the worst will always happen.

what time will we know who won the election?

Answers

Answer:

So since many people voted by mail, we may not know till friday, they need to gather everyones mail and obviously since its paper its going to take a while but remember to please vite blue!

what would be the danger of predicting the number of new subscriptions for a month in which 2,000 hours were spent on telemarketing

Answers

Answer:

The main danger that could pose to predicting the number of new subscriptions for a month in which 2,000 hours were spent on telemarketing would be not to consider the cost of said hours of telemarketing when considering the benefits obtained through the new subscriptions.

Thus, if the economic benefits resulting from the subscriptions were considered without subtracting the cost of the telemarketing hours, the accounting of the company's gross profits would be incorrectly recorded, incurring an error that would generate a higher tax burden for the company.

​Viva, Inc. bought machine X for two years ago. The machine had no residual value and had an estimated useful life of 10 years. If the company uses the straightline depreciation​ method, calculate the current book value of the machine.

Answers

Answer:

the current book value of the machine is $14,400

Explanation:

The computation of the current book value of the machine is shown below:

The Annual Depreciation is

= (Cost - Salvage Value) ÷ (Useful Life)

= ($18,000 - 0) ÷ 10 years  

= $1,800

Now the depreciation for two years is

= $1,800 × 2

= $3,600

So, the current book value is

= Cost - accumulated depreciation

= $18,000 - $3,600

= $14,400

Hence, the current book value of the machine is $14,400

Lexi buys a food processor and uses it without any problems. She loans the processor to Jill, and Jill is injured when a part flies off the machine. If the former rule of privity of contract were in place, which of the following would be true?

Answers

Answer:

Jill cannot hold the manufacturer responsible for her injury.

Explanation:

The above question is incomplete as there are several answer options which are listed below;

• Jill can hold the manufacturer liable for her injury as long as Lexi was in the room when she got

• Jill can hold the manufacturer liable for her injury

• Jill cannot hold the manufacturer responsible for her injury

• Lexi can hold the manufacturer liable for Jill's injury.

The above answer - Jill cannot hold the manufacturer responsible for her injury, is true according to the rule of privity of contract. The rule states that a person who is not a party to a contract does not have right to sue or be sued and to enforce the obligations arising from the contract, unlike a person who is a party to the contract.

With regards to the above scenario, Lexi, who buys a food processor is the party to the contract here, hence can sue and be sued in case of any injury suffered by her, however, Jill whom food processor was loaned to, is the third party here, hence not covered by the rule of privity of contract.

Alice just won the lottery and is trying to decide between the options of receiving the annual cash flow payment option of $370,000 per year for 20 years beginning today, or receiving one lump-sum amount today. Mary Alice can earn 4% investing this money. At what lump-sum payment amount would she be indifferent between the two alternatives?

Answers

Answer:

the  lumpsum payment amount that should be indifferent between the two alternatives is $5,028,411

Explanation:

The computation of the lumpsum payment amount that should be indifferent between the two alternatives is shown below:

Lumpsum amount is

= $370,000 ×  PVIFA at (4%,20)

= $370,000 × 13.5903

=$5,028,411

Hence, the  lumpsum payment amount that should be indifferent between the two alternatives is $5,028,411

The same is to be considered

Does anyone know quick ways to make money.

Answers

Answer:

Sell products online.

Sell used books on Amazon.

Start a Shopify ecommerce store.

Build a free-plus-shipping ecommerce sales funnel.

Do gigs on Fiverr.

Sell services on Upwork or 99Designs.

Build a high-ticket coaching or consulting funnel.

Answer:

robbing banks, helping out, picking pockets, digging under sofas for lost change, yard sales, bake sales, birthdays, helping out, selling things such as clothes you don't want or need, begging, advertizing, fund raisers, getting a summer job, etc.

Which type of borrowing option would most likely result in the borrower
paying the highest amount of interest?

A. A card with a low compound interest rate

B. A card with a high compound interest rate

C. A card with a low simple interest rate

D. A card with a high simple interest rate

Answers

Answer:

B. A card with a high compound interest rate

Explanation:

A.P.E.X

A closed economy has income of $1,000, government spending of $200, taxes of $150, and investment of $250. What is private saving?

a. $100
b. $200
c. $300
d. $400

Answers

Answer: c. $300

Explanation:

Private Saving is income less taxes and consumption so is calculated by the formula;

= Y - C - T

= Income - Consumption - Taxes

Find Consumption

Y - C - G = I

Income - Consumption - Government spending = Investment

1,000 - C - 200 = 250

C = 1,000 - 200 - 250

C = $550

Private Saving is therefore;

= 1,000 - 550 - 150

= $300

i. Examine the current process design of that product or service in alliance with the 4 vs model and illustrate the operational process by using either a Flow Chart or Value Stream Map technique.

Answers

Explanation:

junior bro

then am gointo reply it again

If currency held by the public equals $100 billion, reserves held by banks equal $50 billion, and bank deposits equal $500 billion, then the monetary base equals:________

Answers

Answer:

the monetary base is $150 billion

Explanation:

The computation of the monetary base is shown below:

Monetary base is

= Currency held by the public + reserve held by the banks

= $100 billion + $50 billion

= $150 billion

Hence, the monetary base is $150 billion

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

The price of a European call that expires in six months and has a strike price of $30 is $2. The underlying stock price is $29, and a dividend of $0.50 is expected in two months and again in five months. Risk-free interest rates for all maturities are 10%. What is the price of a European put option that expires in six months and has a strike price of $30?

Answers

Answer:

The price of put option is $2.51

Explanation:

The relation between the European Put option and Call option is called the Put-Call parity. Put-Call parity will be employed to solve the question

According to Put-Call parity, P = c - Sо + Ke^(-n) + D. Where P=Put Option price, C=Value of one European call option share. Sо = Underlying stock price,  D=Dividend, r=risk free rate, t = maturity period

Value of one European call option share = $2

Underlying stock price = $29

Dividend = $0.50

Risk free rate = 10%

Maturity period = 6 month & 2 month, 5 month when expecting dividend

P = c - Sо + Ke^(-n) + D

P = $2 - $29 + [$30 * e^[-0.10*(6/12)] + [$0.50*e^(-0.10*(2/12) + $0.50*e^(-0.10*(5/12)]

P = $2 - $29+($30*0.951229) + ($0.50*0.983471 + $0.50*0.959189)

P = -$27 + $28.5369 + $0.4917 + $0.4796

P = $2.5082

P = $2.51

Therefore, the price of put option is $2.51

The following information about the payroll for the week ended December 30 was obtained from the records of Pharrell Co.:
Salaries:
Sales salaries $402,000
Warehouse salaries 210,000
Office salaries 165,000
$777,000
Deductions:
Income tax withheld $135,975
Social security tax withheld 46,620
Medicare tax withheld 11,655
Retirement savings 17,094
Group insurance 13,986
$225,330
Tax rates assumed:
Social security 6%
Medicare 1.5%
State unemployment (employer only) 5.4%
Federal unemployment (employer only) 0.6%
Required:
1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles):
A. December 30, to record the payroll.
B. December 30, to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $40,000 is subject to unemployment compensation taxes.
2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles):
A. On page 11 of the journal: December 30, to record the payroll.
B. On page 12 of the journal: January 5, to record the employer's payroll taxes on the payroll to be paid on January 5. Because it is a new fiscal year, all salaries are subject to unemployment compensation taxes.

Answers

Answer:

1) December 30, 202x, wages expense

Dr Wages expense 777,000

    Cr Federal income taxes withheld payable 135,975

    Cr OASDI taxes withheld payable 46,620

    Cr Medicare taxes withheld payable 11,655

    Cr Retirement savings (401k) payable 17,094

    Cr Group insurance payable 11,655

    Cr Wages payable 551,670

December 30, 202x, payroll tax expense

Dr OASDI taxes expense 46,620

Dr Medicare taxes expense 11,655

Dr FUTA taxes expense 240

Dr SUTA taxes expense 2,160

    Cr OASDI taxes payable 46,620

    Cr Medicare taxes payable 11,655

    Cr FUTA taxes payable 240

    Cr SUTA taxes payable 2,160

2) December 30, 202x, wages expense

Dr Wages expense 777,000

    Cr Federal income taxes withheld payable 135,975

    Cr OASDI taxes withheld payable 46,620

    Cr Medicare taxes withheld payable 11,655

    Cr Retirement savings (401k) payable 17,094

    Cr Group insurance payable 11,655

    Cr Wages payable 551,670

January 5, 202y, payroll tax expense

Dr OASDI taxes expense 46,620

Dr Medicare taxes expense 11,655

Dr FUTA taxes expense 4,662

Dr SUTA taxes expense 41,958

    Cr OASDI taxes payable 46,620

    Cr Medicare taxes payable 11,655

    Cr FUTA taxes payable 4,662

    Cr SUTA taxes payable 41,958

Raymond purchased a utility trailer on 2/18/2018. The trailer was delivered on 3/10/2018. He added side rails and a lift to the bed of the trailer. The work was completed and the trailer ready for use on 4/2/2018. What is the date placed in service?

a. 02/18/2018
b. 03/10/2018
c. 04/02/2018
d. 01/01/2018

Answers

Answer:

B. 03/10/2018

Explanation:

The date placed in service is 03/10/2018 since this was the date that this trailer or machine was delivered for use according to the question.

The date in service can be defined to be the date that an inventory item such as this machine was made available for service or in other words made available for use. We use this date to calculate the depreciation on the serial inventory.

Answer:

i think its d

Explanation:

The plant and production benchmark data on p.6 of each issue of the Footwear Industry Report

A. Provide valuable feedback to company managers regarding whether the prices being charged for the company's branded footwear are too hight or too low.

B. are especially helpful to company managers in determining whether their company is overspending on advertising.

C. are primarily useful to managers in determining whether their company's total manufacturing costs are low enough to enable the company to meet or beat the EPS targets established by investors.

Answers

Answer:

A. Provide valuable feedback to company managers regarding whether the prices being charged for the company's branded footwear are too hight or too low.

Explanation:

Benchmarking is used by companies to compare products, processes, and prices with others in the industry. This ensures that the company maintains competitive edge that is on par with others in the industry.

In the given scenario benchmarking will help a company know if the price they are charging for their footwear is high or low compared to other companies offering similar services.

In a competitive market if the price offered by one supplier is high compared to others they will move to a cheaper supplier. So it is important to maintain a price that will attract customers

Reports are aimed at helping decision-makers to find out if their policies are right or not. The plant and production benchmark data on p.6 of each issue of the Footwear Industry Report;

A. Provide valuable feedback to company managers regarding whether the prices being charged for the company's branded footwear are too high or too low.

On page 6 of the Footwear Industry Report, we see a table that shows us the price range and daily units of production of footwear.

The number of exports is also recorded. With this, managers can determine whether the prices are high or low based on exports.

Learn more here:

https://brainly.com/question/13346865

I NEED HELP!! THIS IS SO CONFUSING!!

Answers

Explanation:

AD decreas price level increases and real GDP increase

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