Consider the following information which relates to dividends per share (DPS) for a given company:
|
Year |
DPS |
|
2019 |
$1.92 |
|
2018 |
$1.73 |
|
2017 |
$1.51 |
|
2016 |
$1.39 |
|
2015 |
$1.32 |
Today, we are in 2020. Management is in the process of deciding whether to expand or not to expand the firm’s branches. Below, is a set of inputs associated with each scenario:
Scenario #1 – Do Not Expand: Dividend by the end of 2020 is expected to grow at the historical annual growth rate for the period 2015−2019, which is currently undetermined. This period adds up to four years based upon starting at time zero. Once determined, this rate is expected to continue in the future. Under this scenario, the required return on common stock is 14.36%.
Scenario #2 – Expand: Dividend in 2021 is expected to be $2.13 per share, which will grow at an annual rate of 14.12% for two years (2022 and 2023), and then, the divided would grow at the same unknown rate in the first scenario from 2024 thereafter. Under this scenario, the required return on common stock is 17.58%.
Required: What is the dollar difference in the present value per share of common stock between both scenarios?
In: Finance
Consider the following information which relates to dividends per share (DPS) for a given company:
|
Year |
DPS |
|
2019 |
$1.92 |
|
2018 |
$1.73 |
|
2017 |
$1.51 |
|
2016 |
$1.39 |
|
2015 |
$1.32 |
Today, we are in 2020. Management is in the process of deciding whether to expand or not to expand the firm’s branches. Below, is a set of inputs associated with each scenario:
Scenario #1 – Do Not Expand: Dividend by the end of 2020 is expected to grow at the historical annual growth rate for the period 2015−2019, which is currently undetermined. This period adds up to four years based upon starting at time zero. Once determined, this rate is expected to continue in the future. Under this scenario, the required return on common stock is 14.36%.
Scenario #2 – Expand: Dividend in 2021 is expected to be $2.13 per share, which will grow at an annual rate of 14.12% for two years (2022 and 2023), and then, the divided would grow at the same unknown rate in the first scenario from 2024 thereafter. Under this scenario, the required return on common stock is 17.58%.
Required: What is the dollar difference in the present value per share of common stock between both scenarios?
In: Finance
The following data were taken from the records of Clarkson
Company for the fiscal year ended June 30, 2020.
| Raw Materials Inventory 7/1/19 | $50,000 | Factory Insurance | $5,400 | |||
| Raw Materials Inventory 6/30/20 | 47,300 | Factory Machinery Depreciation | 18,600 | |||
| Finished Goods Inventory 7/1/19 | 97,800 | Factory Utilities | 31,000 | |||
| Finished Goods Inventory 6/30/20 | 24,800 | Office Utilities Expense | 9,450 | |||
| Work in Process Inventory 7/1/19 | 22,900 | Sales Revenue | 560,200 | |||
| Work in Process Inventory 6/30/20 | 24,500 | Sales Discounts | 4,400 | |||
| Direct Labor | 144,850 | Plant Manager’s Salary | 65,600 | |||
| Indirect Labor | 25,160 | Factory Property Taxes | 9,810 | |||
| Accounts Receivable | 27,300 | Factory Repairs | 1,500 | |||
| Raw Materials Purchases | 96,900 | |||||
| Cash | 41,500 |
Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.)
Prepare an income statement through gross profit.
Prepare the current assets section of the balance sheet at June 30, 2020. (List Current Assets in order of liquidity.)
In: Accounting
Carla Vista Ltd., a private company reporting under ASPE,
reported the following for the years ended May 31, 2021, and
2020.
| CARLA VISTA LTD. Balance Sheet May 31 |
||||||
| Assets | 2021 | 2020 | ||||
| Cash | $25,100 | $46,750 | ||||
| Accounts receivable | 88,650 | 78,750 | ||||
| Inventory | 184,000 | 159,750 | ||||
| Prepaid expenses | 5,900 | 7,400 | ||||
| Land | 135,750 | 79,500 | ||||
| Equipment | 319,000 | 199,000 | ||||
| Accumulated depreciation | (77,200 | ) | (39,750 | ) | ||
| Total assets | $681,200 | $531,400 | ||||
| Liabilities and Shareholders’ Equity | ||||||
| Accounts payable | $42,850 | $39,750 | ||||
| Dividends payable | 7,400 | 5,900 | ||||
| Income taxes payable | 3,100 | 6,900 | ||||
| Mortgage payable | 131,000 | 79,750 | ||||
| Common shares | 218,500 | 165,750 | ||||
| Retained earnings | 278,350 | 233,350 | ||||
| Total liabilities and shareholders’ equity | $681,200 | $531,400 | ||||
| Additional Information: | ||
| 1. | Profit for 2021 was $107,750. | |
| 2. | Common shares were issued for $52,750. | |
| 3. | Land with a cost of $52,750 was sold at a loss of $19,900. | |
| 4. | Purchased land with a cost of $109,000 with a $57,750 down payment and financed the remainder with a mortgage note payable. | |
| 5. | No equipment was sold during 2021. | |
Prepare a cash flow statement for the year using the indirect
method
In: Accounting
6. Pricing foreign goods
The nominal exchange rate is the price of one currency in terms of another currency. A nominal exchange rate specifies how many units of one country's currency are needed to buy one unit of another country's currency.
Suppose the following table presents nominal exchange rate data for November 26, 2014, in terms of U.S. dollars per unit of foreign currency. Use the information in the table to answer the questions that follow
Cost of One Unit of Foreign Currency
Foreign Currency (Dollars)
Brazilian real (BRL) 0.3666
Canadian dollar (CAD) 0.8493
Euro (EUR) 1.3288
Japanese yen (JPY) 0.009748
Mexican peso (MXN) 0.0889
United Kingdom pound (GBP) 1.8965
Suppose that on November 26, 2014, a marble statue handmade in the United Kingdom is priced at GBP 530. The approximate U.S. dollar price of the statue would be _______ .
If the nominal exchange rate for the U.S. dollar-Mexican peso rises from $0.0889 to $0.10668 per Mexican peso _______ , in value, or the _______ , relative to the U.S. dollar.
In: Math
Are U.S. unemployment rates typically higher, lower, or about the same as unemployment rates in other high-income countries?
I got a answer that I found on this web site, but it is not helpful for me.
So, please do not copy&paste that answer for my posting.
The answer is that;
Unemployment rate in U.S have been lower as compare to other
countries. This is because of the following reasons that internet
is a new medium through which many job seekers can find the jobs in
different companies. Internet has made job search an easier task.
The growth of the temporary labor industry in recent years reduced
the unemployment rate in U.S. In 1980s only 0.5 % of all labors
were working. In early 2000s, the number had increased to 2%.
Proportion of young workers was relatively high in 1970s because of
the aging of baby boom generation. Today, U.S unemployment rate is
lower because young generation of 1970s has now become middle aged
workers. Middle aged workers are likely to have more stable jobs
than young age workers.
In: Economics
In: Economics
Craft a 5 page essay around a theme suggested by the following question. You may use references either to material you have been asked to read in the course or to other material that you research on the internet. However, be sure to cite all sources. We would prefer you do not quote extensively and summarize (rather than paraphrase) material.
To some extent, we have all been affected by the recent pandemic, either personally, professionally or economically. Keeping this in mind, what does the COVID-19 crisis reveal about some of the main themes covered in this course?
For instance, what does it reveal about the issues of economic and social inequality in the U.S? About the lack of job security for many U.S. workers? About what jobs are essential? About the fairness/unfairness of current pay structures, the adequacy of health insurance or the lack thereof? About the work/life chances of various groups of workers in the U.S.? If you wish you might contrast how the Covid-19 crisis has fueled recent movements and deepening societal divisions in the U.S.
In: Accounting
write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas. In 1944, finance specialists and bankers from around the world met to discuss what the post-WWII monetary system would be. Given the instability of the pre-war period, the goal was to create a new system. The outcome of this was the Bretton Woods system, which had the U.S. dollar as the world reserve currency linked to gold at $35 an ounce. All other currencies were tied to the dollar with limits on how much they could appreciate or depreciate. The system lasted until the 1970s, when the United States decided to move away from gold convertibility. The modern system is based on supply and demand for currency and a managed float. Discuss the following in your main post: The U.S. dollar remains the world's reserve currency. Is this good for the United States, and if so, why? People usually think a "strong" dollar is good. Is this true for U.S. businesses, and does it help or hurt the U.S. balance of payments?
In: Economics
A. In the context of the Standard Trade Model, describe the economic elements that dictate differences between the production possibilities frontiers of different countries. B. Suppose the U.S. produces clothing and food. The price of one pound of food is $2 while the price of one yard of cloth is $5. Write down the equation for the isovalue line given that the total production is V. C. Suppose that V=$100 and that the US produces 10 lbs of food. Draw the PPF, the isovalue line and indicate the production point given these parameters (Use Cloth on the vertical axis and Food on the horizontal axis). What is the slope of the isovalue line given the prices in part B? D. The U.S. has preferences such that they like to consume more cloth and less food. Suppose that the demand for food is 5 lbs of food. What would be the demand for cloth given a production value V=$100 and the price of one pound of food being $2 and price for cloth being $5. Describe what the U.S. will trade by calculating imports and exports. Illustrate in a graph by showing where the U.S. will consume and where they produce.
In: Economics