DAA's stock is selling for $15 per share. The firm's income, assets, and stock price have been growing at an annual 15 percent r

ate and are expected to continue to grow at this rate for 3 more years. No dividends have been declared as yet, but the firm intends to declare a dividend of D3 = $2.00 at the end of the last year of its supernormal growth. After that, dividends are expected to grow at the firm's normal growth rate of 6 percent. Will you buy this stock? Why?

Business

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What was the weighted average interest rate Colgate faced on its short-term borrowings in 2013? Enter with 1 decimal place and w

soldi70 [3635]

Answer:

In 2013, Colgate's weighted average interest rate on its short-term borrowings was:

2.2%.

Explanation:

On page 62 of Colgate Palmolive's 10-K annual report, covering the fiscal year ending December 31, 2013, it was noted that "the weighted-average interest rate for short-term borrowings amounting to $13 in 2013 and $54 in 2012 listed in Notes and loans payable in the Consolidated Balance Sheets as of December 31, 2013, and 2012 was 2.2% and 1.0%, respectively."

The weighted average interest rate is calculated by considering the varying interest rates on short-term borrowings combined with their corresponding weights. These weights assist in calculating the average interest rate based on their proportionate sizes relative to the overall interest expense.

9 0

3 months ago

Suppose you short-sell 300 shares of XYZ stock at $30.19 with a commission charge of 0.5%. Supposing you pay commission charges

Nady [3600]

The profit amounts to $5.91. Based on the information presented: The number of shares sold is 300, the selling price is $30.19, and a commission fee of 0.5% equates to 0.005. The purchase price is $29.87. Let's calculate it: Total selling price = 300 × $30.19 = $9057. Therefore, proceeds from the sale are: Total selling price - Commission = $9057 - (0.005 × $9057) = $9,011.715. Furthermore, the purchasing cost for the shares is 300 × $29.87 = $8,961. The total expense incurred for purchase, including the commission, is $8,961 + (0.005 × $8,961) = $8,961 + $44.805 = $9,005.805. Consequently, profit is considered to be: Proceeds from sale - Total purchasing cost = $9,011.715 - $9,005.805 = $5.91.

8 0

1 month ago

On January 1, 2019, Fitbit goes public and issues 50 million shares at $20 per share. Fitbit had 200 million shares prior to goi

soldi70 [3635]

Answer:

$600 million

Explanation:

On January 1, 2020, the balance of common stock & APIC is derived as follows:

Common stock & APIC = Paid-In Capital + Capital raised from selling 50 million shares at $20 each - Treasury Stock

This gives:

Paid-In Capital = $500 million

Issuance of 50 million shares at $20 each amounts to:

Treasury Stock involves buying back 20 million shares priced at $45 each.

Inserting the numbers leads to:

Common stock & APIC = $500 million + $1000 million - (20 million shares × $45 each)

Therefore, Common stock & APIC = $1500 million - $900 million = $600 million

6 0

2 months ago