The interest rate is 6%. Microsoft stock pays annual dividends that start at $12 next year and then grow by 2.5% every year thereafter, forever. a. What should be the price of Microsoft stock? What is the P/E ratio? b. What should its price be if dividends grow at 4% per year? What is the P/E ratio now?
Q: The cost of unsold inventory at the end of the year is classified as a(n) in the A. assets; balance…
A: The correct answer is:A. assets; balance sheet Explanation:Unsold inventory represents goods that…
Q: What is the profit margin on these general accounting question?
A: Step 1: Define Profit MarginProfit Margin is a financial ratio that measures the percentage of…
Q: Provide correct answer general accounting
A: Step 1: Define Variance AnalysisVariance analysis is concerned with finding out the reason behind…
Q: Subject - General Account
A: Step 1: Understanding the given data:Units produced = 650Direct materials = $750.00 per unitDirect…
Q: What is the budgeted cost of goods sold for December for this general accounting question?
A: Step 1: Define Cost of Goods Sold (COGS)The cost of goods sold (COGS) is calculated as the beginning…
Q: Find the correct answer general accounting
A: Step 1: Information givenBeginning Inventory = $54,000Purchases = $90,000Net Sales = $180,000Gross…
Q: Give true answer the general accounting question not use ai
A: Step 1: Define Activity RatiosThe activity ratios are used to ascertain the efficiency of a firm.…
Q: Can you please solve these general accounting question?
A: Step 1: Define Average Number Of Days' SalesThe average number of days' sales or average collection…
Q: Please provide answer
A: To determine the proper unit value for balance sheet reporting purposes under the LCNRV (Lower of…
Q: Get correct answer general accounting
A: Step 1: Define Direct Labor VariancesTwo direct labor variances are calculated in standard costing;…
Q: I won't this question answer general Accounting
A: Step 1: Define Profit AnalysisIn accounting, profit analysis helps determine a business's financial…
Q: What is the net income for this firm on the general accounting question?
A: Step 1: Define Net IncomeNet income is the most important indicator of a business's performance as…
Q: Accounting
A: Step 1: Define Interest PayableInterest Payable is current liability that reflects the amount of…
Q: Please provide correct answer this financial accounting question
A: Step 1: Define BondsBonds are financial instruments issued to borrow funds from investors for a long…
Q: Aerospace Manufacturing recently replaced a piece of machinery at a net price of $4,000, f.o.b.…
A: The cost of the new machine is the sum of the deductible paid by Aerospace ($4,000) and the freight…
Q: I don't need ai answer general accounting question
A: Approach to solving the question: For better clarity of the solution, I have provided the formulas…
Q: 10 The cost of visiting customers would MOST likely be classified as a Select one: a.…
A: It is best classified as a customer-sustaining cost because it directly supports the relationship…
Q: Questions Of Financial Account For its first year of operations, Tringali Corporation's…
A: Calculate Tringali Corporation's deferred income tax liability at the end of its first year of…
Q: Financial Account Subject Questions Answer This Given
A: 1. Variable Costing Income Statement in Contribution FormatTo prepare the income statement using…
Q: The ROA for 2020 was?
A: Explanation of Net IncomeNet income refers to the total profit earned by a company after deducting…
Q: Brian brewster sold the property solve this accounting questions
A: Step 1: Define Capital GainA capital gain arises when the price of a Capital Asset appreciates and…
Q: Under variable costing, fixed manufacturing overhead is: a) expensed immediately when incurred. b)…
A: The correct answer is:a) expensed immediately when incurred. ExplanationUnder variable costing:Fixed…
Q: Brisco Corporation recently purchased... Please need answer the general accounting question
A: Step 1: Define Materials Purchase Price VarianceMaterials purchase price variance measures the…
Q: The cost of the goods that a company sold during a period is shown in its financial statements as…
A: The correct answer is:a. cost of goods sold; inventory Explanation:Cost of Goods Sold (COGS):The…
Q: Bata Company's salaried employees are paid biweekly. Occasionally, advances made to employees are…
A: Explanation of Accrued Salaries Payable: Accrued salaries payable represents the amount of wages or…
Q: Question:Financial Account Which one of the following is an advantage of using variable costing? a.…
A: The correct answer is:c. Variable costing makes cost-volume relationships more easily apparent.…
Q: 2) 19-%-A company sells three products: A, B and C in a 5:2:3 sales mix. Sales price: A -$9 Variable…
A: Understanding the Sales MixThe sales mix represents how products are sold relative to one another.…
Q: Financial accounting questions
A: Understanding the ComponentsSales: This is the total revenue generated from selling goods or…
Q: Can u answer me
A: Explanation of Dividend-in-Kind: Dividend-in-kind refers to a distribution of assets other than cash…
Q: Please provide this question solution general accounting
A: Step 1: Calculate the Gain RealizedStep 2: Calculate the Boot ReceivedStep 3: Determine the…
Q: Rosewood company made a loan of $8600 solution this general accounting question
A: To determine the interest revenue Rosewood Company would report for 2016 and 2017, we need to…
Q: Question:Financial Account - 03-69 Top Disc manufactures frisbees. The following information is…
A: Given InformationProduction Units = 325,000Sales Units = 180,000Revenue = $450,000Costs:Variable…
Q: Provide answer
A: Risk-pattern analysis is the process of relating the various risks to the various risks in a system…
Q: Do fast provide answer this general accounting question
A: The company applies manufacturing overhead to jobs based on direct labor costs. At the end of the…
Q: Financial Account - Maria owns 100% of stock with adjusted basis of $52,000 she receives a cash…
A: Step 1: Understand the Order of DistributionWhen a corporation makes a cash distribution to a…
Q: Financial A..question please provide correct answer
A: Step 1: Define Pre-determined Overhead RateBusinesses use a pre-determined overhead application rate…
Q: variable costing would be?
A: Step 1: Key Differences Between Absorption and Variable CostingUnder absorption costing, fixed…
Q: The Rolling Department of Kraus Steel Company had 2,000 tons in beginning work in process inventory…
A: Step 1: Key InformationBeginning Work in Process Inventory (WIP):2,000 tons (80% complete,…
Q: If a company has total liabilities of solve this general accounting question
A: Step 1: Define Total AssetsIn business, the value of the total assets at at a given point in time…
Q: 6 Fill in the blank: ________ is the amount of time from when a customer places an order for a…
A: Approach to solving the question:Freeform Detailed explanation: Customer response time is the total…
Q: To what extent should tax considerations influence the selection and application of accounting…
A: Detailed explanation:Definitions Related to the QuestionExplanation of Tax Considerations:Tax…
Q: Please solve these financial accounting question
A: Step 1: Define Times Interest Earned RatioThe times interest earned (TIE) ratio measures a company's…
Q: Accounting
A: Step 1: Define Maturity DateThe maturity date is the day on which the principal amount and unpaid…
Q: Which one of these statements related to depreciation is correct for a firm with a taxable income of…
A: Correct Answer: B. Depreciation is a non-cash expense that increases the firm's cash flows.…
Q: A company had been selling its product for $58 per unit, but recently lowered the selling price to…
A: Lower-of-Cost-or-Market Inventory ValuationTo determine the value of inventory on the balance sheet,…
Q: Cost Account Questions
A: Step 1:First, calculate the equivalent unit of production for conversion using the weighted average…
Q: 7 Which of the following reasons is unlikely to be related to an unfavourable variance for…
A: Hello student!An unfavorable variance for labor costs happens when the actual direct labor cost…
Q: Hello expert please given correct answer
A: Step 1: Define Straight-Line MethodThe straight-line method of depreciation is a simple and commonly…
Q: The Johnson Manufacturing Company manufactures a single product. The managers, Ron and Ken Johnson…
A: Given InformationBase Year (2005) Inventory = $500,000Price Indexes:2006: 1.102007: 1.142008:…
Q: Hi expert please give me answer general accounting question
A: Step 1: Define Depreciation Tax ShieldDepreciation tax shield refers to tax savings because of…
Hi expert please give me answer general accounting
Step by step
Solved in 2 steps
- What is the stock price today if the dividend grow at 2% forever, the required rate of return r=10%, dividend today is $2.00. What is the stock price at year 3?You expect that Microsoft will pay a dividend of $1.50 in one year, $1.75 in two years, and $2.00 in three years. After that, dividends are expected to grow at 3% per year. If your required rate of return is 8%, what should be the price of Microsoft today according to the Dividend Discount Model?Whizcom Inc. is expected to pay a dividend of $1 next period. Dividends are expected to grow at 2% per year and the investors require a return of 12%. a) What would be the likely stock price in year 5? b) What would be per annum rate of return implied by a change in prices from time 0 to time 5?
- Suppose dividends on a stock are expected to be €1 per share for the next 3 years, and the required return is 10% . If the price of a stock is €100 in 3 years 'time when you plan to sell it, what price does this stock need to currently fetch on the market to make it worth buying? If the stock price is expected to increase by €1 three years from now, does the current stock price also increase by €1 ? Why or why not?Suppose Malaysian Electronics stock is selling for $100 a share (Po = 100). Investors expect a $5 cash dividend over the next year (DIV1 = 5). They also expect the stock to sell for $110 a year hence (P1 = 110). What is the expected return to the stockholders?Whizcom Inc. is expected to pay a dividend of $1 next period. Dividends are expected to grow at 2% per year and the investors require a return of 12%. i) Compute the current stock price for Whizcom Inc.ii) What would be the likely stock price in year 5?iii) What would be per annum rate of return implied by a change in prices from time 0 to time 5?
- A stock will pay a dividend next quarter of $1.00. If the expected return is 10% per year, compounded annually, what is the price of the stock? Suppose a stock will pay $0 for the next 4 years, and then pay $1 every quarter after that. The required return is 10% per year, compounded annually. What is the price of the stock? Suppose a stock will pay $0.50, $1.00, $1.50, $2.00 and then grow at 4% per year compounded quarterly. The required return is 10% per year compounded annually. What is the price of the stock?What should you pay for a stock if next year's annual dividend is forecast to be $5.25, the constant-growth rate is 2.85%, and you require a 15.5% rate of return?Suppose currently Samsung's common stock is selling for $195. The company announced that it will give $2.30 dividend next year and it plans to grow the dividend by 5% every year. Given the information what is the market's required rate of return for the stock?
- Suppose Lilly V, Inc. has just paid a dividend. The next dividend, to be paid in a year, is forecasted to be $4. If the growth rate of dividends is 7% and the discount rate is 11%, at what price will the stock sell? a.Less than $100 b.More than $100 c.$100 d.$111Suppose Facebook Inc. currently pays $1 dividend. Analysts project that the dividend for the next three years will be $1, $2, and 5$. After that the annual dividend is predicted to grow at 5% per year. Investors require a 10% rate of return. What is the value of one share of Facebook stock under these assumptions?grey manufacturing is expected to pay a dividend of $1.25 per share at the end of the year (D1=$1.25). The stock sells fo $27.50 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate?