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lana66690
10 days ago
9

Harvey County Choppers, Inc. is experiencing rapid growth. The company expects dividends to grow at 25 percent per year for the

next 7 years before leveling off to 7 percent into perpetuity. The required return on the stock is 12 percent. What is the current stock price if the annual dividend share that was just paid was $1.05?
Business
1 answer:
stepan [3.2K]10 days ago
3 0
The stock's current price is projected to be $60.15. This valuation is derived from analyzing future dividend streams, both short-term and long-term, and applying present value calculations.
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You are the IT manager for the Andrews Company. A large shipment of new computers has just arrived. You notice that the inventor
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A company's unit costs based on 100,000 units are: Variable costs $75 Fixed costs 30 The normal unit sales price per unit is $16
Free_Kalibri [3489]

Answer:

Incremental profit = $30000

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Explanation:

provided data

Variable costs = $75

Fixed costs = 30

Sales price = $165

to determine

incremental profit or loss  from approval

solution

The contribution per unit is calculated as follows:

Contribution per unit = $165 - $75

Contribution per unit = $90

Consequently, we determine the loss on contribution from forgoing regular sales:

Loss on contribution = $3000 × $90

Loss on contribution = $270000

Furthermore,

The incremental contribution for the special order is calculated as:

Incremental contribution = (135 - 75) × 5000

Incremental contribution = $300000

Thus, the incremental profit equates to:

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Incremental profit = $30000

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27 days ago
Prof. Finance will have $1,500,000 saved up by retirement at age 65. The retired professor expects to live 25 more years after r
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