Osbourne, Inc., has an odd dividend policy. The company has just paid a dividend of $7 per share and has announced that it will increase the dividend by $3 pershare for each of the next 8 years, and then never pay another dividend. If you require a 12 percent return on the company's stock, how much you will pay for ashare today?
whats the answer.Increasing cost industries? a. factor lower costs when more firms are producing in the short run. B. require higher prices in the long run to cover higher long runcosts. c. will increase prices in the long run as they gain market power. d. require lower prices in the long run to cover lower long-run costs.
For Month Ended October 31, 2010Unadjusted TrialBalanceAdjustments Adjusted Trial Balance Income Statement Balance SheetDebit Credit Debit Credit Debit Credit Debit Credit Debit CreditCash 2,800.00Supplies 350.00AccountsReceivable 4,310.00AccountsPayable 600.00AccruedLiabilitiesProduct Sales 5,500.00Labor ExpenseSuppliesExpenseShippingExpense 40.00Equity(Capital) 1,400.00Total 7,500.00 7,500.00Net Income
The Federal Reserve was established in 1913 and is, therefore, a“creature of Congress.” The President of the UnitedStates nominates members of the Board of Governorsof the FederalReserve, subject to confirmation by the Senate. However, theFederal Reserve is basically free to pursue monetary policyindependent of Congress or thePresident. Should the FederalReserve remain independent of the President and Congress or shouldthe President and Congress control monetary policy? Why?
What is the first yeardepreciation using the straight line method in the followingexample. Purchase price $1,250,000 Set up andinstall $55,000Salvage value $118,000 Life expectency - seven years
Identify and discuss the most important corporate governance issues today, and how would they affect your choice of which stocks to purchase or avoid?
Olympic sports has two issues of debt outstanding. One is a 9% coupon bond with a face value of $20 million, a maturity of 10 years, and a yield to maturity of 10%.The coupons are paid annually. The other bond issue has a maturity of 15 years, with coupons also paid annually, and a coupon rate of 10%. The face value of the issueis $25 million, and the issue sells for 94% of par value. The firms tax rate is 35%.what is the before tax cost of debt for olympic?what is the after tax cost of debt for olympic?
Because financial planning usually takes place in a highly uncertain environment,a. it is rarely worth the time and expense.b. time horizons should be limited to a few months.c. it is important to develop contingency plans to respond to unexpected events.
Identify the Microsoft existing objectives and strategies.Explain one (1) strategy that the Microsoft might use to take advantage of an external opportunity, and one (1) strategy that the Microsoft might use to address apotential threat.PLease add your source or reference from where information came from
You have a budget of $100 as part of your income allocated for two goods,X1 and X2. Assume that X1 represents clean healthy water that you have to buy to drink. Thewater is measured by cubic meter in volume and costs $20 per cubic meter. Assume that X2 represents the air that you have to breath to survive and is measured in cubicmeter too. However the air you breath is free.Graph the budget line and label A1.Given that the price of water drops to $10 per cubic meter and your budget isincreased to $150, draw the new budget line on the same graph and label A2.
St. Charles Hospital, located in an upper-income neighborhood of a large city, recently received a restored mansion as a gift from an appreciative patient. The boardof directors decided to remodel the mansion and use it as recuperative quarters for patients willing to pay a premium for luxurious accommodations. The cost to thehospital of using the mansion includesa. nothing because it was a gift.b. how much the hospital pays for upkeep--taxes, insurance, utilities, maintenance, etc.c. how much the hospital would receive if it rented or sold the mansion.d. both b and cis it B?
Old country Links Inc. produces sauages in three production departments - Mixng, casing and curing, and packaging. In the mixing department meats are prepared andground and then mixed with spices meat mixture is then transfered to the casing and curing department, where the mixture is force-fed into casings and then hungand cured in climate-controlled smoking chambers. In the Packageing Department, the cured sausages are sorted, packed, and labeled. The company uses theweighted-average method in its process costing system. Data for September for the casing ad caring department follows.Percent completedunitmixing materials conversionWork in progress inventory , September 11100%90%80%Work in progress inventory , September301100%80%70%Mixing Materials conversionWork in progress inventory , September 1$1,670$90$605Cost added during ,September$81,460$6,006 $42490Mixing cost represents the cost spiced meat mixture transferred in from the Mixing department . The spiced meat mixture is processed in the casting and curingdepartment batches : each unit in the above able table is a batch and one batch of spiced meat mixture produces set amount of sausages that are passed on to thePackage Department. During September, 50 batches (i.e. units) were completed and transferred to the packaging department.Required:1. Determine the equivalent units for September for mixing, materials, and conversion. Do not round off your computations.2. Compute the cost per equivalent unit for September for mixing, materials, and conversion.3. Determine the total cost of ending work in progress inventory and the total cost if units transferred to the Packaging Department in September.4. Prepare a cost reconciliation report for the casing and curing department for September.
Marion, Inc. has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2012.There were no dividends declared in 2011. The board of directors declares and pays a $55,000 dividend in 2012. What is the amount of dividends received by the commonstockholders in 2012?
Asahi Kasei Corporation has sales nearly the equivalent of $9 billion U.S. dollars. The company included the following in its balance sheet (yen in millions):Property,plant &equipment, net of accumulated depreciation(Notes 8 &9)Buildings ¥ 158,424Machinery &Equipment 156,156Land 63,150Construction in progress 22,089Other 15,374Total property, plant, and equipment ¥ 415,193Footnote 8 contains the following:Accumulated depreciation comprises the following (yen in millions):Buildings ¥ 216,865Machinery &Equipment 875,757Other 86,795Total accumulated depreciation ¥ 1,179.417Footnote 2 says: “Depreciation is provided under the declining-balance method for property, plant, and equipment, except for buildings which are depreciated using thestraight-line method, at rates based on estimated useful lives of the assets, principally, ranging from five years up to sixty years for buildings and from four yearsup to twenty-two years for machinery and equipment.”1.Compute the original acquisition cost of each of the five categories of assets listed under property, plant, and equipment.
The production department in a process manufacturing system completed 191,500 units of product and transferred them to finished goods during a recent period. Of theseunits, 31,500 were in process at the beginning of the period. The other 160,000 units were started and completed during the period. At period-end, 29,500 units were inprocess. Compute the department’s equivalent units of production with respect to direct materials under each of three separate assumptions:1. All direct materials are added to products when processing beings.2. Direct materials are added to products evenly throughout the process. Beginning goods inprocess inventory was 40% complete and ending goods in process inventory was 75% complete.3. One-half of direct materials is added to products when the process begins and the other half isadded when the process is 75% complete as to direct labor. Beginning goods in process inventory is 40% complete as to direct labor, and ending goods in processinventory is 60% complete as to direct labor.
Assume the point elasticity method. 3. If the price increases by 20 percent and the quantity supplied increases by 40 percent, what does the elasticity of supplyequal?
Frank, a widower, had a serious stroke and is no longer capable of caring for himself. He has three sons, all of whom live in different states. Because they are unableto care for Frank in their homes, his sons have placed him in a nursing home equipped to provide medical and nursing care. Total nursing home expenses amount to $36000per year. Of this amount $15000 is directly attributable to medical and nursing care. Frank’s Social Security benefits are used to pay for $10000 of the nursing homecharges. He has no other income. His sons plan to split the remaining medical expenses equally.Can you provide Frank’s sons with a tax planning idea for maximizing the deduction for his medical expenses
For Contreras Company, sales is $1,000,000, fixed expenses are $300,000, and the contribution margin per unit is $72. What is the break-even point?A) $416,667 sales dollarsB) 13,889 unitsC) 4,167 unitsD) $1,388,889 sales dollars